Banking News

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.

At present, the existing holders of Small Scale Industry registration, need not file Udyog Aadhaar Memorandum, but if they so desire, they may also file the Udyog Aadhaar Memorandum. There is no restriction on filing more than one Udyog Aadhaar Memorandum using the same Aadhaar Number.

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.

(73) Comments

  1. Anish Qureshi

    Dear Sir, I want to ask that i have my GST Registration but Bank Want a second reg. of my business for current Account.I am a trader of retail items. So Please tell me which second reg. are helpful for me.

    1. Surendra NaikSurendra Naik - Post author

      I am not familiar with GST registration process. As per my information, you have to get GST registration and then open new current account. I have not understood why second account to be opened. Consult a Charted accountant or tax consultant in this matter.

  2. MSME Registration

    its a Really very nice article Surendra Ji@ but still there are lot of the banks which are not accept the Udyog aadhar Registration and they are asking for the DIC Registration from the state department. so any solution in this case. i want to use MSME as 2nd legal entity proof for current bank account.

    1. Surendra NaikSurendra Naik - Post author

      All other online/ offline systems of registration of MSMEs created and maintained by Central/State/UT Governments have been ceased to register new MSMEs. Henceforth, there should be only one system i.e. UAM for the registration of new MSME units.States/UTs were asked to provide all benefits/concessions to MSMEs based on UAM only. It was suggested by the ministry that such awareness be spread through the District Industries Centers (DICs).

  3. Debnath Saha

    and i also have a candle manufacturing business and want to register under uam but did't found the NIC code for the same

  4. tushar awasekar

    Dear SIr, Great to see the interactive part of this web site. These FAQ will help lot of entrepreneurs !!! I am holding SSI certificate ( OLD TYPE) . Do I need to reapply the for the same. ? Does it get automatically re-validated ? Thanks

    1. Surendra NaikSurendra Naik - Post author

      The existing holders of Small Scale Industry registration, need not file Udyog Aadhaar Memorandum, but if they so desire, they may also file the Udyog Aadhaar Memorandum. There is no restriction on filing more than one Udyog Aadhaar Memorandum using the same Aadhaar Number.

  5. Hemangi Darbare

    My dad has gumasta under SHOP I category of establishment. Can I replace Gumasta with Udyog Adhaar? We have 2 employees. We manufacture metal and Iron springs. Please suggest. Thanks!

  6. pramod shukla

    Sir i have an existing real estate business (Pvt Ltd) but i dont have any SSI /MSMe registration,Please suggest that what registration(SSI or Udyog Adhar) i can do for benefits of MSME.please suggest

    1. Surendra NaikSurendra Naik - Post author

      Real Estate business comes service enterprises. You may apply for Udyog Aadhar registration. NIC no.for real estate business are Real estate activities, 13963, 3815, 135, 17913 etc. While applying for Udyog Aadhar online find out the appropriate code number for your business and enter the same.It is a very simple process.

  7. pramod shukla

    can i take all benefits of SSI/MSME by Udyog Adhar. like in Govt tenders ,business loan etc. Is there any need of SSI/MSME /NSIC certificate for all these benefits. After registration in udyog adhar ,is it require to register with MSME/SSI??

    1. Surendra NaikSurendra Naik - Post author

      Udyog Aadhar certificate replaces SSI/MSME certificates. The Aadhar registered are now eligible for all those benefits which were earlier available to SSI/MSME registered units.

  8. Okharam Choudhary

    hello sir, i have manufacturing unit in aurangabad registered under udyog aadhar and now we are starting a different unit in gujrat for the same company and for same product so do we need to again register differently for udyog aadhar for the plant in gujrat ?

    1. Surendra NaikSurendra Naik - Post author

      One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar or with the same Aadhaar Number as Enterprise 1 and Enterprise 2 etc. I'm not sure whether you need a separate aadhar in Gujarat. Please checkup from the local DIC office.

  9. Antony

    Sir , I have started a building materials retail business in my home permises in tamilnadu. Could you tell the NIC Code for registering udyog Aadhar.

  10. NILESH KUMAR

    Sir, I am retail grocery shopkeeper . Therefore fall under NIC 2digit code 47 but the same is not available . Kindly help me out.

  11. Hirenkumar Movaliya

    Sir, I have two Questions... 1) In Udyog Aadhar registration there is need of Bank Account No. Is it Current account of firm??? 2) I want to open Current account in Bank / Udyog Aadhar registration / GST registration then In which order i have to go??? Means tell me orderwise I have to go for registration

  12. NITIN TUNGAR

    activities with NIC code 47( Retail Trade) has been removed by the Govt, the Bank has demanding registration certificate of Udyog aadhar for business. What should do, and how to register for it. Please help

    1. Surendra NaikSurendra Naik - Post author

      Mr.Nitin, I am given to understand that people have filled NIC 4 digits got it right in Udyog Aadhar (instead of 2 digits or 5 digits). For example, 4721 for retail sale of cereals,pulses, tea,coffee etc. 4722 retail sale of breverage.4723 tobacco products etc. Please try once again.

  13. Mustaq Hussain

    I want to Open a Current Account? Is it possible to open Current Account with Udyog Aadhar Registration Certificate for my buisness.

    1. Surendra NaikSurendra Naik - Post author

      Only Udyog Aadharwill not suffice,you need to have trade licence and other permissions if the current a/c is in the name of firm. For Personal Current A/C you need to have PAN Card as well. For Company A/C,Partnership A/C different sets of documents are required.Read my article at below link. https://www.bankingschool.co.in/deposits/kyc-documents-for-current-accounts-of-all-varieties/

    1. Surendra NaikSurendra Naik - Post author

      It must be noted that if your intention is to conduct a small scale coaching centre, there are no licenses that’re required to be obtained. But, if your coaching centre intends to be the size of an institution, you would need to get a trade license and pay tax for the revenue generated through the centre.There are many institutes registered as pvt. ltd company and society etc and providing certificates

        1. Surendra NaikSurendra Naik - Post author

          Udyog Aadhar is subsitute for SSI/MEME registeration, it is not a substitute for prpritorship, partnership, limited company. They have to be registered seperately wherever required.

          1. Surendra NaikSurendra Naik - Post author

            In the case of proprietorship firm, there is no registration required. As there is no procedure to make application for availability of name (as in the case of companies) applicable, you simply have to open a bank account with the name & style you want to work. The Certificate/license issued by the Municipal authorities under Shop & Establishment Act, Sales and income tax returns. GST registration etc are the other staturory certificates which can be used for KYC purpose. There is a provision under companies act to register one man company for propritery concerns.

  14. chetan nayak

    Dear sir, what is the difference between Udyog adhar memorandum and Udyog adhar registration certificate and which of these have more "weightage "

  15. Sathish

    Dear Sir, I'm doing opticals business. I have udyog aadhar license. Now gst is mandatory for my business. My business monthly turn over just 60000 rupees only?

    1. Surendra NaikSurendra Naik - Post author

      The businesses in the Northeastern and hill states with annual turnover below Rs.10 lakh would be out of the GST net, while the threshold for the exemption in the rest of India would be an annual turnover of Rs.20 lakh. A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax.However, the traders supplying goods to other states will need to register under the Goods and Services Tax (GST) even if their turnover is below Rs 20 lakh.

  16. Bharti

    Dear Sir, If a Company has two manufacturing units in different states. And the company has applied for UAM for one unit with that unit's state address. So, whether Company can add other's manufacturing unit address in the same UAM or it has to applied for new UAM for 2nd unit. Regards

    1. Surendra NaikSurendra Naik - Post author

      One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number as enterprise 1 and enterprise 2 etc.

  17. mohan

    Hi sir,i alrdy registered under msme (old) -(Date of commencement -2013)..so now if i am registering under UAM means,shall i change the date of commencement as 2015 or 2016 ??? Is there any option available to change??

  18. Ajmal

    Dear sir, I have ssi registration for saw Mill issued from 2003 and valid upto 2008, but now I have one petrol pump and saw mill to so can i register now for UAM or not?

  19. anand

    we have a MSME certificate for mfg and supply of Airpollution control equipments. We have changed our registered office address. Is it possible to amend the company address in the existing MSME certificate. Subsequently we also got a Udyog aadhar Memorandom with the new office address. Only problem is they have not mentioned manufacturing as the activity and not defined as small or medium. How to correct the same. Pl advice

  20. Parvinder

    Dear Sir, We are a start up company .. almost 3 years old. We are registered with NSIC Ltd as Micro unit. We have also recieved our UAM. We participate in many tenders floated by Govt , where they ask for MSME certificate for exemption of EMD. I want to know if UAM and MSME are one and the same? If no, where should we apply for MSME Certificate? If yes, can we ask the tender floating authorities to replace the term MSME with UAM certificate? Request you to please advice

    1. Surendra NaikSurendra Naik - Post author

      UAM and MSME/SSI registrations are the same, as UAM substitutes MSME/SSI registration.You may inform the concerned authorities if asked that the Udyog Aadhar certificate has now replaced old system of MSME registration.

  21. AKASH GUPTA

    Dear Sir, I am seeking to open a cold storage unit in U.P. i have not started business yet. I want to know that MSME registration is only for running units? as we are an upcoming unit can we register our unit under MSME.

Leave a Reply

Your email address will not be published. Required fields are marked *


Comments

error: Content is protected !!