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Udyog Aadhaar replaces old system of MSME/SSI registration

Udyog Aadhaar replaces old system of MSME/SSI registration

Udyog Aadhaar registration is the new system that replaced the earlier system of SSI registration and EM-I/II. The  gazette notification dated 18.09.2015 brought an end to the legacy of registration of SSI and Entrepreneur Memorandum (EM-I/II) as all other online/ offline systems of registration of MSMEs created and maintained by Central/State/UT Governments cease to register new MSMEs forthwith.

The process of filing Udyog Aadhaar Memorandum (UAM) is a simple one-page format compared to the cumbersome process of earlier registration system. The individuals, who have Aadhaar number (having the advantage of already provided the demographic as well as biometric details to the state), can themselves file the Udyog Aadhaar Registration at UAM portal.The following details are required. 1. Name of the owner, 2.Social category (Gen/SC/ST/OBC), 3. Name of the enterprise, 4.Type of organization ( Proprietor/Partnership/ HUF, Co-op, Public Ltd./Private Ltd, SHG, LLP etc.), 5.Postal Adress, 6.Date of commencement of business, 7.Previous registration detail such as detail of MSME registration (if applicable), 8. Bank details (Account No. and IFSC No.) 9. Major Activity (Manufacturing/ service), 10. NIC code (available with National Industrial classification (NIC) hand- book) of the activity, 11.Persons employed (Number of persons employed. However, the number of employees does not have the bearing on the classification of  enterprises under MSME Act 2006), 12.Investment in plant and machinery equipment (No need to indicate the cost of land and buildings) in the business, 13.  DIC details (details of nearest District Industries Centre to the business if required).

All the above information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM. However, in terms of gazette notification dated 18-09-15, in all exceptional cases, including those of not having Aadhaar number, can still file Udyog Aadhaar Memorandum, in offline mode(i.e. on the paper form), with the General Manager(GM) of the concerned District Industries Centre(DIC). It means to do registration there are two options available to an applicant.

There are no process fees for registration of UAM. Another advantage of UAM is that the applicant does not require following up the registration process after online filing as the UAN (12 digit Udyog Aadhaar No.), is instantly generated. Although, UAN is generated instantly on the basis of self-certification, the enterprises filing the UAM online are liable to provide documentary proof of information provided in the UAM, wherever necessary, to the Central Government, State Government or such person as may be authorized.

Benefits of Udyog Aadhaar

The idea of Udyog Aadhaar and simplified registration  process have ensured wider coverage of MSMEs to avail the benefits under various Schemes of Central/ State governments  namely subsidies, low rate of interest loans, personal guarantee free and collateral free loans (under CGTMSE guarantee scheme), financial support to participate in foreign expo etc.

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