Over the last five decades, the Micro, Small, and Medium Enterprises (MSME) sector has been critical to India’s development. MSMEs help to industrialize rural and underdeveloped areas, reducing regional disparities and assuring a more effective and equitable distribution of national revenue and wealth, as well as providing abundant employment opportunities at reduced capital costs.
Although the Indian government has various efforts for MSMEs and SSIs, the promotion and growth of small enterprises is the responsibility of the state governments. In 2006, the Micro, Small, and Medium Enterprises Development (MSMED) Act were enacted to offer MSMEs with subsidies and exemptions. All businesses are required to register under the Act, however, most do not due to the amount of paperwork necessary. As a result, in 2015, the ministry opted to implement the Udyog Aadhaar, which facilitates MSME registration and allows them to take advantage of several federal and state-run initiatives.
Memorandum on Udyog Aadhaar (UAM):
A UAM is a free one-page registration form on which an MSME self-certifies its existence, bank account details, owner/Aadhaar promoter’s numbers, and other required information.
Following the submission of the form, an acknowledgment form with the applicant’s unique Udyog Aadhaar Number (UAN) will be provided through email.
No supporting documents are required to be uploaded or submitted because this is a self-declaration form. Any state or central body, however, has the ability to request any paperwork as confirmation of the information provided in the Udyog Aadhaar Memorandum.
Online Udyog Aadhaar Form Information:
The details that must be entered into the form are as follows:
The applicant is given a 12-digit Aadhaar number.
The owner’s name as it appears on the Aadhaar card
Validation: To verify Aadhaar, the applicant must click the Validate Aadhaar button. This is necessary for the user to continue filling out his or her form.
Reset The applicant can use the reset option to clear the Aadhaar No. and owner’s name fields for each Aadhaar.
Social classification: General, Scheduled Caste, Scheduled Tribe, or Other Backward Castes are the options available to the applicant (OBC). If and when necessary, verification of the same may be requested.
The Business’s Name: This name must be the same way the applicant wants his or her business to be known as a legal entity in the public. It’s worth noting that a single applicant can have many businesses established in his or her name using the same Aadhaar number.
Organizational structure: It is necessary to choose the right sort of organization for the company. For each business, only one UAN will be granted.
Postal address: The business’s complete postal address, including state, district, pin code, phone number, and email address, must be included.
Details of past registrations: If the applicant’s business has already been issued a valid EM-I/II under the MSMED Act 2006 or a valid SSI registration prior to the aforementioned Act, that number must be mentioned in the appropriate location.
Bank account information: The applicant must supply information on the bank account that will be used to manage the firm. The account number, bank branch, and IFSC code are all included in the information. All information can be discovered on the account holder’s chequebook or by contacting the relevant bank directly.
Major activity: The firm must choose either “manufacturing” or “service” as its principal activity for Udyog Aadhaar. If the company does both but manufacturing is the mainstay, manufacturing as a primary activity must be indicated, and vice versa.
NIC Code (National Industry Classification Code): By choosing the “Add More” option, the applicant can select numerous National Industrial Classification-2008 (NIC) Codes to include all of their activities. If Manufacturing needs to be included, click the “Add More” button after selecting the “Manufacturing” radio button.
These codes are created by the Central Statistical Organisation (CSO), which is part of India’s Ministry of Statistics and Program Implementation.
A person employed: The entire number of people who are paid directly by the company for their job must be indicated.
Plant and Machinery/Equipment Investment: When asked to determine the total investment, the original one (buy price of things) must be used, minus the costs of pollution control, research and development, industrial safety devices, and any other items specified by RBI by notification.
DIC (Department of Corrections): The DIC location must be completed based on the location of the business. This section will be active and will display an option only if there is a potential that the district may have more than one DIC.
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Submit: The acknowledgment number will be created once the “Submit” button is pressed.