As per the recommendations made by Kamath Committee, the Ministry of MSME, in consultation with the National Board of MSMEs and the Advisory Committee in this behalf, has prepared a one-page registration form that would constitute a self- declaration format under which the MSME will self-certify its existence, bank account details, promoter/owner’s Aadhaar details and other minimum basic information required. Based on the same, the MSMEs can be issued online, a unique identifier i.e. Udyog Aadhaar Number. The Ministry of MSME has set up the infrastructure i.e. the Udyog Aadhaar (UA) Portal (http://udyogaadhaar.gov.in) for online filing of Udyog Aadhaar Memorandum (UAM) by enterprises located anywhere in the country. The UA portal is also accessible on mobile devices. The procedure for filing Udyog Aadhaar Memorandum has been notified.
Benefits of filing Udyog Aadhaar Memorandum
Udyog Aadhaar registration will enable the units/enterprises to seek information and apply online about various services being offered by all Ministries and Departments. Earlier only medium enterprises were insisted to file EM2 as it was very cumbersome to file, the simplified. Udyog Aadhaar will enable all enterprises to file and register themselves so that simply by using Udyog Aadhaar Number, they can access other services. The process of obtaining Udyog Aadhaar Number is free-of cost, paperless and results in instant registration.
Guidelines for Filing the Online Udyog Aadhaar Form
1. Aadhaar Number - 12 digit Aadhaar number issued to the applicant should be filled in the appropriate field.
2. Name of Owner- The applicant should fill his/her name strictly as mentioned on the Aadhaar Card issued by UIDAI.
3. To Validate Aadhar
4. Validate Aadhar- The applicant must click on Validate Aadhaar button for verification of Aadhaar, after that only user can fill the form further.
5. Reset- The applicant can click on reset button to clear the field of Aadhaar No and Name of the owner for different Aadhaar.
6. Social Category- the Applicant may select the Social Category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC). The proof of belonging to SC, ST or OBC may be asked by appropriate authority, if and when required.
7. Name of Enterprise- the Applicant must fill the name by which his/her Enterprise is known to the customers/public and is a legal entity to conduct business. 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.
8. Type of Organization- the Applicant may select from the given list the appropriate type of the organization for his/her enterprise. The Applicant must ensure that he/she is authorized by the legal entity (i.e. enterprise being registered for Udyog Aadhaar) to fill this online form. Only one Udyog Aadhaar number shall be issued for each enterprise.
9. Postal Address- the Applicant should fill in the appropriate field the complete postal address of the Enterprise including State, District, Pin code, Mobile No and Email.
10. Date of Commencement- The date in the past on which the business entity commenced its operations may be filled in the appropriate field.
11. Previous Registration Details(if any)- If the Applicant's enterprise, for which the Udyog Aadhaar is being applied, is already issued a valid EMI/ II by the concerned GM (DIC) as per the MSMED Act 2006 or the SSI registration prevailing prior to the said Act, such number may be mentioned in the appropriate place.
12. Bank Details- the Applicant must provide his/her bank account number used for running the Enterprise in the appropriate place. The Applicant must also provide the IFS Code of the bank's branch where his/her mentioned account exists. The IFS code is now a day’s printed on the Cheque Books issued by the bank. Alternatively, if the Applicant knows the name of the Bank and the branch where his/her account is there, the IFSC code can be found from website of the respective Bank.
13. Major Activity- The major activity i.e. either "Manufacturing" or "Service" may be chosen by the enterprise for Udyog Aadhaar.
14. NIC Code- the Applicant may choose as appropriate National Industrial Classification-2008 (NIC) Code for the selected "Major Activity". The NIC codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program implementation, Government of India.
15. Person employed- The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field. Total investment, the original investment (purchase value of items) is to be taken into account excluding the cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI. If an enterprise started with a set of plant and machinery purchased in 2008 worth Rs. 70.00 lakh has procured additional plant and machinery in the year 2013 worth Rs. 65.00 lakh, then the total investment in Plant & Machinery may be treated as Rs. 135.00 lakh.
16. DIC- the Applicant, based on the location of the Enterprise, has to fill in location of DIC. This Column will be active and show option only when there are more than one DIC in the district. In fact if there is only one DIC in the district system will automatically register you in the same DIC.
17. Submit- The Applicant must click on Submit button to generate acknowledgment number.
1. Having Aadhaar Number is not mandatory for registering an MSME under Udyog Aadhaar. The Udyog Aadhaar Registration can be done online by individuals themselves in case they have an Aadhaar number. However, in all exceptional cases, including those of not having Aadhaar number, can still file Udyog Aadhaar Memorandum ,in offline mode(i.e. on paper form), with the General Manager(GM) of the concerned District Industries Centre(DIC). The same has also been notified in the gazette dated 18.09.2015. The persons having Aadhaar numbers, by virtue of having provided the demographic as well as biometric details to the state, once and for all, indeed enjoy a greater ease of registration at the UAM portal. Within a short span of time, more than 38,000 registrations have taken place on the UAM portal owing to the simplified process of registration of MSME units. Udyog Aadhaar Memorandum for States with Less Coverage under Aadhaar. Some of the States have less than adequate coverage till date as per the UIDAI data. It has been clarified to such States, such as Assam that the option of assisted filing of UAM in offline mode with the GM (DIC) could be resorted to. Aadhaar number is not a mandatory requirement when the States/UTs have offices in the Districts headed by GM (DICs) and whose primary role is to promote and facilitate industries in the District. The UAM can be filled through the concerned GM (DIC). The States/UTs have been asked to sensitize their District Industries Centers for a proactive role in Udyog Aadhaar.
2. Single System of Registration for MSMEs- Udyog Aadhaar Memorandum Prior to 18.09.2015, when the Entrepreneurs’ Memorandum-II was filled with the GM (DIC), heterogeneous systems were in vogue. Some States had their own online systems for registering MSMEs, some were using the national portal created by Ministry of MSME and some (around 10 states) were continuing with the manual (paper form) system of filing EM-II. The new system of Udyog Aadhaar offers convergence of all heterogeneous systems to a single system of registration. The system is capable of delivering assured ease of doing business where the UIDAI has coverage i.e. 92% of the country’s adult population. The Udyog Aadhaar portal has suitable provisions for sharing State/ District specific data of registrations under Udyog Aadhaar with the respective States/ Districts. This initiative of maintaining the data on MSMEs with Ministry of MSME is likely to save cost in the long run since States/UTs would no longer be requiring maintaining the same.
3. The Genesis of Udyog Aadhaar The ministry for micro, small and medium enterprises had last month notified Udyog Aadhaar, taking a cue from the prime minister's radio show Mann Ki Baat, where he had talked about simplifying procedures to start a business with a single-page registration form. A large chunk of enterprises in India are simply not registered due to the cumbersome paperwork involved in the process and, therefore, can't tap the government schemes for them. The K.V. Kamath panel on financing the MSME sector, that has been the biggest job creator in recent years, had recommended that the registration should be universalized. The concept of Udyog Aadhaar and ease of registration have thus originated to ensure wider coverage of MSMEs to avail the benefits under various Schemes of Central/ State governments.
Frequently Asked Questions and Answers
Q1- Has EM-I/II been replaced by UAM?
Yes. After the notification dated 18-09-2015, filing of EM-I/II by S t a t e s / U T s should be discouraged and instead all efforts be made to popularize the filing of UAM on the portal by Ministry of MSME i.e.http://udyogaadhaar.gov.in
Q2- What is the date for adopting the UAM and stopping EM-I and EM-II?
It is clarified that once the UAM has been notified dated 18-09-15, there cannot be a different cut-off date announced for adopting UAM. However, in order to maintain continuity, the cases of EM-I/II filing under process till 18-09-2015 may be accepted.
Q3- Whether the multiple system of registration may exist after introduction of UAM?
All other online/ offline systems of registration of MSMEs created and maintained by Central/State/UT Governments should cease to register new MSMEs forthwith. Such online platforms may be allowed to exist for the time being to enable access to useful legacy data for decision making. Henceforth, there should be only one system i.e. UAM for the registration of new MSME units.
Q4- Whether States/UTs have access to reports/ query and such other functions as may be required by GM (DIC)/ Directorate of Industries on the UAM portal?
The Udyog Aadhaar portal has been envisaged to take care of this requirement
Q5- How to select NIC Code of the Activity performed by the enterprise.
NIC code can be selected once the aadhaar number is validated and major activity (manufacturing or service) is selected. In order to simplify the selection of appropriate NIC code, a three-stage drop-down list is available to the users
Q6- Is there a provision to verify the UAM credentials by the procurement agencies including government departments and PSUs?
NIC has been advised to suitably provide this provision in a way that several e-procurement portals in the country, created by the government or private but being used by the government could benefit from the UAM portal in so far as online verification of a MSME unit is concerned.
Q7- Is there a difference in the information sought under EM-I/II and the new UAM?
In order to promote ease of doing business for MSMEs, it has been decided to seek lesser information than EM-I/II in the UAM.
Q8- How to submit the supporting documents while filing UAM online?
The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM.
Q9- What would be the role of “Udyog Bandhu” in the UAM?
The role of facilitating the creation and growth of enterprises in the States/UTs is not proposed to change in any manner whatsoever through UAM. The concept of “Udyog Bandhu” may therefore not be affected by UAM.
Q10- Whether the new system of UAM encapsulates the change in the
line of production?
Yes, since the new system constitutes self declaration format, the change in the line of productions accordingly may be incorporated.
Q11- What would happen to those enterprises which do not have Aadhaar Number?
At present Aadhaar Number is mandatory for registration under UAM. However, the GoI will find a way out for covering those cases where Aadhaar Number is not available.
Q12- EM-I filed by a prospective enterprise entitles it for certain exemptions from paying stamp-duties. How to handle this in UAM?
Legally, the EM-I/II ceases to exist after 18-09-15. States/UTs may encourage providing all benefits/concessions to MSMEs based on
Q13- Is there a provision for editing of information in UAM data of an enterprise by GM (DIC)?
No. However, GM DICs, on the UAM portal, shall be able to enter their remarks on the respective information provided by the entrepreneurs while filing the UAM online
Q14- What is the future of EM Portal created by Miistry of MSME i.e. http://em.msme.gov.in?
New registrations in the EM Portal have been stopped forthwith.
Q15- Who has access to the data from the UAM portal?
The UAM Portal shall have suitable provisions to allow officials of the State Governments including GM DICs to have password protected access to data of their jurisdiction
Q16- Whether the new system of registration provides NIC Code in Hindi and English?
Presently the NIC Codes are only available in English. However, the same may be made available in Hindi in due course.
Q17- What is the monitoring mechanism available to Director (Industries) and GM (DICs) for new registration under UAM?
Since the UAM is being filing on self certification basis and the UAN is generated instantly, there cannot be any monitoring of the registration process. However, 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.
Q18- Some Disclaimer should be added in UAN.
Notification clearly states that the UAM filed is on self declaration basis. Therefore, no separate disclaimer is required.
Q19- Why power load details have not been asked in UAM?
Power load indicates the requirement of energy to the MSME unit. This has no relevance to the activity of the enterprise and the subject matter is dealt by the State/UT Governments.
Q20- Will there be any updating of data by the entrepreneurs on the UAM portal?
The legacy of SSI registration and EM-I/II does not mandate for updation and the same used to be filed as a one-time exercise on the part of MSME units. The same is proposed to continue.
Q21- How the closing of the business unit is recorded the entrepreneur in the UAM?
It may not be made obligatory for the closing unit to inform about it to the State/UT concerned or the UAM