MSME Registration Services

Micro, Small and Medium Enterprises (MSME) has become a stalwart sector of Indian economy. It has come to play a vital role in the Indian economy with respect to employment generation, employing low investment level, reducing regional disparities, GDP contribution and enhancing equal distribution of income and wealth. MSME Registration Services has given a further push to the MSME sector by simplifying the whole process and bringing the  unorganised sector within the ambit of formal economy of the country. MSME sector is complementary to the large industrial sector in the sense that the former contributes to the socio-economic development of the country. The onus of promotion and development of MSMEs is on the State governments. However, the Central government via various initiatives is to supplement the State governments. Given the vast importance the sector carry, knowing about the MSME Registration Services is similarly important. In this article, we will understand what services are provided under the MSME Registration Services and their need.

 

What is MSME Registration Services ?

Registration of industries plays a vital role in the industrial development and economic growth of a country. It also brings the unorganised MSME industries into the mainstream economy. In the course of time, the government has taken various initiatives to streamline and regulate the MSME registration services. Under MSME Registration services, all the formalities related to it are completed and lastly the MSME registration certificate is issued to the applicant. The registration is voluntary for all industries working under the control and supervision of the Central and state government. MSME registration is a key component of this registration process. MSME registration India is for micro, small and medium enterprises to reap the fruits of various incentives and schemes declared by the government from time to time. SSI registration means registration of small scale industries and units.      

Udyog Aadhar or MSME Registration Services was introduced with the objective to simply the procedural formalities which the business owners have to undergo while registering their business under MSME. Before the Udyog Aadhaar, the process of registration was quite hectic, time-consuming and complex.

MSME Registration Services are nothing more than a government registration with an Udyog Aadhar registration certificate and a unique number that certifies an enterprise as small or medium as the case may be. It is a twelve digit unique identification number given by the Ministry of Micro, Small and Medium Enterprises. The underlying principle behind the launch of Udyog Aadhar as part of MSME Registration Services is that, the government has to provide maximum benefits to the medium or small scale enterprises registered via the MSME Registration Services through their Aadhar Card Number.

The Government of India has enacted the Micro, Small and Medium Enterprises Development Act, 2006 to regulate the MSME registration services and processes involved in it. Besides the registration process, the Act seeks to shed light on the coverage and investment ceiling of the sector. It addresses the policy issues affecting MSMEs. Moreover, the Act intends to promote the development and enhance the competitiveness of the MSMEs. It has given legal support to ‘enterprises’ by defining the term so as to include manufacturing and service entities. Further, medium scale enterprises have been provided with a definition. The Act clearly demarcates between three tiers of enterprises, namely, micro, medium and small.

Udyog Aadhaar memorandum refers to the one-page registration form available under the MSME Registration Services. It is a self-declaration format under which the MSME shall certify its existence, bank account details, Aadhaar details of the promoter or the owner and other information so required. After submitting the form, Udyog Aadhar acknowledgment shall be generated and mailed on the email address provided in the Udyog Aadhaar memorandum. The memorandum shall contain a unique Udyog Aadhaar number. Neither a registration fee is charged for this purpose nor there is a bar on filing the Udyog Aadhaar memorandum using the same aadhaar number. Those entrepreneurs who have already filed Entrepreneurship Memorandum-I or Entrepreneurship Memorandum-II or both, or the holders of small scale Industry registration prior to the enactment of the MSME Act, 2006 are not required to file the Udyog Aadhaar memorandum. In case the entrepreneurs so desire, they can file the Udyog Aadhaar memorandum.       

Now, before proceeding with the MSME Registration Services, let’s first discuss what MSME is.

 

What is an MSME (Micro Small Medium Enterprises) ?

As per the Micro, Small and Medium Enterprises Development Act, MSMEs can be classified into two categories:-

  • Manufacturing enterprises

As the name suggests, those enterprises that are engaged in the manufacture or production of goods pertaining to a particular industry so specified in the first schedule or while employing plant and machinery such that it adds value to the final product having a distinct name or character or use. The definition is based on investment in plant and machinery.  Accordingly,

  • A micro enterprise is one wherein the ceiling limit of investment in plant and machinery does not exceed Rs. 25 lakh.   
  • A small enterprise is an enterprise wherein the ceiling limit of investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
  • Medium enterprises are those enterprises wherein the ceiling limit of investment in plant and machinery is more than Rs. 5 crores but does not exceed Rs. 10 crore.     

The investment in plant and machinery is its original cost excluding land and machinery and also the items as may be specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006.      

  • Services enterprises

Those enterprises which are engaged in providing or rendering services as notified under the MSME Act, 2006 are called services enterprises. Depending upon the investment in equipment i.e., original cost excluding land and buildings, furniture, fittings, and other items not directly related to the services provided or rendered, service enterprises can be classified into three categories:-    

  • A micro enterprise is one wherein the ceiling limit of investment in equipment does not exceed Rs. 10 lakh.   
  • A small enterprise is an enterprise wherein the ceiling limit of investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crores.
  • Medium enterprises are those enterprises wherein the ceiling limit of investment in equipment is more than Rs. 2 crores but does not exceed Rs. 5 crore.     

The MSME on various occasions has raised their voices to amend the definition of MSMEs. The Cabinet has approved a draft which seeks to bring a change in the definition of MSMEs. The crucial points of the proposal are as follows:-

  • A distinction between manufacturing and service enterprises have not found a place.
  • The thresholds limits for MSMEs are raised. Micro from Rs. 10 lakh to Rs. 5 crores, small from Rs. 2 crores to 75 crores and for medium from Rs. 5 crores to 250 crores.

The definitions can be criticized mainly on the four grounds:-

  • In recent times, with continued erosion of rupees, the threshold limit becomes almost impractical. Adjusting with the inflation rate would require to enhance the limit double or triple times.
  • Pharmaceuticals, Auto-component, food processing are some of the giants of MSME sectors. They have constantly demanded a many-fold increase in the investment limit to comply with the one mandatory and industrial standards.
  • Investment based distinction creates a sort of conflict between old enterprises and new enterprises. Setting up an industry for the production of a product in present times requires comparatively more investment than an industrial unit set up ten or twenty years ago meaning thereby what could have been a microenterprise in the past is now a small or even a medium enterprise in the present.
  • To obtain the certification of micro, small and medium enterprises from CAs, a large number of enterprises under-reported the investment, got a CA certification and thereafter participated in the public procurement designed especially for MSMEs.

The advantages of the definition are as follows:-

  • The turnover criteria does away with various ills of the earlier regime. It is transparent because the competent authorities can at any time cross check the turnover via GSTN. CA certificate is mandatory.
  • The definition focuses on current turnover which brings the old and new enterprises on the same pedestrian.
  • There are sectors with low investment but high turnover such as gems and jewelry units, industries producing aluminum conductor steel-reinforced cable. Due to their investment criteria, they are grouped under the small category but their turnover range from Rs 100 to 300 crore.           

What are small scale industries ?

Those undertakings whose fixed investment in plant and machinery does not exceed Rs 1 crore notwithstanding whether it is on lease, ownership or hire are called small scale industries. Ancillary industries are those undertakings whose investment in plant and machinery is not more than Rs. 1 crore engaged in the manufacture of components, parts, tools etc or rendering or providing 30% of production services to other units for production of other articles.

Undertakings with investment in plant and machinery less than Rs. 23 lakh are called tiny units. Examples include laundry, Xeroxing, repairs with the maintenance of customer equipment and machinery, hatching and poultry. They are mainly located in town with a population less than 50,000. Small-scale service establishments are engaged in personal or household services with investment in plant and machinery less than Rs. 25 lakh and population not exceeding 50,000.  

Ownership of small scale industries is in the form of either a proprietorship or partnership. These industries are generally localized catering to the demands of local or regional people. Since the resources available at their disposal is limited so they have to confine themselves within the local area. They are more labour intensive than capital extensive. Therefore, such kind of industries is suitable wherein capital is low and the labour supply is in abundance. So naturally, the gestation period for small scale industries is less compared to large industrial units. They are more flexible and susceptible to socio-economic changes.

The objectives of small scale industries are as follows:-

  • Creation of employment opportunities with lesser investment.
  • Reduction of backwardness of rural and less developed regions.
  • Reduction of regional imbalances.
  • Optimum utilization of the resources.
  • Improving the standard of living.
  • Ensure equitable distribution of income and wealth.
  • Attainment of self-reliance.
  • Adoption of latest technology producing high-quality products at lower costs.

 

As part of MSME Registration Services, one of the important step is Udyog Aadhaar Registration.

Udyog Aadhar Registration in India

Registration of industries plays a vital role in the industrial development and economic rise of a country. Industrial sector generates largest number of employment in most of the developing country. In India, large number of these industries which comes under the category of MSME India, are unorganised and do not form the part of mainstream economy. In the course of time, the government has taken various initiatives to streamline and regulate the industrial registration. Udyog Aadhaar registration system is approachable as the procedure has been simplified under the MSME Registration Services by the government to increase the compliance. The MSME registration India is voluntary for all industries working under the control and supervision of the Central and state government. MSME registration India is a key component of this MSME registration services. MSME registration is for micro, small and medium enterprises to reap the fruits of various incentives and schemes declared by the government from time to time. SSI registration India means registration of small scale industries and units having place of business in India.        

Udyog Aadhar was introduced with the objective to simplify the procedural formalities which the business owners have to undergo while registering their business under MSME Registration Services. Before the Udyog Aadhar, the process of registration was quite hectic, time-consuming and complex.

Udyog Aadhar is nothing more than a government registration with a registration certificate and a unique number that certifies an enterprise as small or medium as the case may be. It is a twelve digit unique identification number given by the Ministry of Micro, Small and Medium Enterprises. The underlying principle behind the launch of Udyog Aadhar is that the government to provide maximum benefits to the medium or small scale enterprises registered via the MSME Registration Services through their Aadhar Card Number.

The Government of India has enacted the Micro, Small and Medium Enterprises Development Act, 2006 to regulate the MSME Registration Services. Besides the registration process, the Act seeks to shed light on the coverage and investment ceiling of the sector. It addresses the policy issues affecting MSMEs. Moreover, the Act intends to promote the development and enhance the competitiveness of the MSMEs. It has given legal support to ‘enterprises’ by defining the term so as to include manufacturing and service entities. Further, medium scale enterprises have been provided with a definition. The Act clearly demarcates between three tiers of enterprises, namely, micro, medium and small.

Udyog Aadhar Memorandum

Udyog Aadhaar memorandum refers to a one-page registration form. This memorandum is a kind of affidavit that needs to be submitted with the authorities stating the existence of the business. It is a self-declaration format under which the MSME shall certify its existence, bank account details, Aadhaar details of the promoter or the owner and other information so required. After submitting the form, Udyog Aadhar acknowledgment shall be generated and mailed on the email address provided in the Udyog Aadhaar memorandum. The memorandum shall contain a unique Udyog Aadhaar number. Neither a registration fee is charged for this purpose nor there is a bar on filing the Udyog Aadhaar memorandum using the same aadhaar number. Those entrepreneurs who have already filed Entrepreneurship Memorandum-I or Entrepreneurship Memorandum-II or both, or the holders of small scale Industry registration prior to the enactment of the MSME Act, 2006 are not required to file the Udyog Aadhaar memorandum. In case the entrepreneurs so desire, they can file the Udyog Aadhaar memorandum.      

Procedure for Udyog Aadhar Registration or MSME Registration as provided under MSME Registration Services

The registration process is quite simple. The form is not required to be attested by a professional. Moreover, the registration is absolutely free under MSME Registration Services.

Udyog Aadhar Online Registration Process

Step 1: To visit the site at http://udyogaadha.gov.in/UA/UAM_Registration.aspx.

Step 2: To enter the aadhar number. In case of a partnership firm, the partner applying for the Udyog Aadhaar registration will give his aadhar number and if it is a company, the authorized signatory applying on behalf of the company will have to give his aadhar number.

Step 3: To enter the OTP received.

Step 4: To fill the Udyog Aadhar form.

  • Aadhaar Number – At the outset itself, the applicant has to select his / her Udyog Aadhaar number is of the North East Region. In case, if the Aadhar number is not of north-east region, he has to provide his 12 digit Aadhaar number in the appropriate field. Where the Udyog Aadhaar number is of the North East Region, the applicant has to enter his / her registered mobile number with Udyog Aadhaar Registration.
  • Gender.   
  • Name of the owner.
  • PAN – The applicant has to enter his PAN number in the appropriate field.
  • A special category of the entrepreneur like serviceman, a person with a disability, woman, minority etc. (if any)
  • Name of the enterprise
  • Type of organization
  • Proprietorship
  • Partnership Firm
  • Hindu Undivided Family
  • Private Limited Company
  • Co-operative
  • Public Limited Company
  • Self Help Group
  • Others like Limited Liability Partnership
  • A major activity of the enterprise unit i.e, manufacturing, services and trading.
  • State in which the enterprise unit is located.
  • Date of commencement of the enterprise unit.
  • Previous registration details (if any)
  • A number of a person employed in the enterprise unit.
  • Investment undertook in plant and machinery.
  • National Industrial Classification Code.
  • Details of the District Industry Centre

Step 5: To click on the submit button.

Step 6: To enter the OTP so received.

Step 7: To enter the code for the final submission.           

Udyog Aadhar Offline Registration Process

Step 1: Apply for Aadhaar Card.

Step 2: Until the Aadhar card is received, the application of Udyog Aadhaar, in that case, will be made by the District Industry Centre (DIC) or MSME-DI.

Step 3: Submission of the following documents to the DIC or MSME-DI

  • Either the Aadhar Enrollment ID slip or a copy of the request made for Aadhaar enrolment.
  • Any valid address proof.

Step 4: To fill the form physically.

Step 5:  To submit the form to the District Industry Centre or MSME-DI.

On submission of the form, the applicant shall get an acknowledgment of successful submission of the form. Thereafter, the Udyog Aadhaar number will be sent to the applicant via online.      

Major Reasons for Udyog Aadhaar Online Registration In India  as available under MSME Registration Services

MSME Registration Services provide udyog aadhar online registration services so as to make it within the reach of any businessman in any corner of the state or India. Apart from this –

  1. Protection against late payments.
  2. Quicker resolution of disputes.
  3. Free collateral loans from the bank.
  4. Waiver of stamp duties and registration fees.
  5. Barcode registration subsidy.
  6. Subsidy on NSIC performance and Credit ratings.
  7. Counter guarantee from the government of India via CGSTI.
  8. Lower interest rates from banks.
  9. 15% subsidy under CLCSS scheme for technological advancement.
  10. Exemptions while applying for Government tenders.
  11. Concession in electricity bills.
  12. Reimbursement of payment made while obtaining ISO Certification.
  13. 1% exemption on interest in Overdraft.
  14. Increase ineligible loan limit from Rs. 25 lakh to Rs. 50 lakh.
  15. Reservation of products exclusively manufactured by MSME/SSI.
  16. Easy process of registration and approval for obtaining licenses.
  17. Eligible for IPS subsidy.
  18. Preference is given in the allocation of government tenders.
  19. Reduced rate of interest from banks.
  20. 50% subsidy for patent registration.       

Above listed are some of the benefits of the Udyog Aadhaar registration, provided under MSME registration services that a holder can enjoy. As per the schemes introduced by the government, the same benefits can be enjoyed by the Udyog Aadhaar holder.  

Benefits of Udyog Aadhaar Online Registration as provided under MSME Registration Services

  1. The Protection against late payments.
  2. Quicker resolution of disputes.
  3. Free collateral loans from a bank.
  4. Waiver of stamp duties and registration fees.
  5. Barcode registration subsidy.
  6. Subsidy on NSIC performance and Credit ratings.
  7. Counter guarantee from a government of India via CGSTI.
  8. Lower interest rates from banks.
  9. 15% subsidy under CLCSS scheme for technological advancement.
  10. Exemptions while applying for Government tenders.
  11. Concession in electricity bills.
  12. Reimbursement of payment made while obtaining ISO Certification.
  13. 1% exemption on interest in Overdraft.
  14. Increase ineligible loan limit from Rs. 25 lakh to Rs. 50 lakh.
  15. Reservation of products exclusively manufactured by MSME/SSI.
  16. Easy process of registration and approval for obtaining licenses.
  17. Eligible for IPS subsidy.
  18. Preference is given in the allocation of government tenders.
  19. Reduced rate of interest from banks.
  20. 50% subsidy for patent registration.       

Above listed are some of the benefits of the Udyog Aadhaar registration availed under MSME Registration Services that a holder can enjoy.

As per the schemes introduced, the same benefits can be enjoyed by the Udyog Aadhaar holder.   

Documents and Information required for Udyog Aadhaar registration in India as stated by MSME Registration Services

The following documents and information ought to be submitted by the promoter to register under the MSME databank:-

 1. Basic details of the applicant

  • Aadhaar Number – At the outset itself, the applicant has to select his / her Udyog Aadhaar number is of the North East Region. In case, if the Aadhaar number is not of north-east region, he has to provide his 12 digit Aadhaar number in the appropriate field. Where the Udyog Aadhar number is of the North East Region, the applicant has to enter his / her registered mobile number with Udyog Aadhaar.
  • PAN – The applicant has to enter his PAN number in the appropriate field.
  • Verification of the Aadhar and Udyog Aadhar by clicking on the validate button.
  • Name of the enterprise
  • Size of the enterprise unit
  • Type of organization
  • Type of organization
  • Proprietorship
  • Partnership Firm
  • Hindu Undivided Family
  • Private Limited Company
  • Co-operative
  • Public Limited Company
  • Self Help Group
  • Others like Limited Liability Partnership
  • A major activity of the enterprise unit i.e, manufacturing, services and trading.
  • State in which the enterprise unit is located.
  • District in which the enterprise unit is located.
  • Pin code of the place where the enterprise unit is located.
  • Date of commencement of the enterprise unit.
  • Email id of the applicant.
  • Mobile Number of the applicant.
  • Address on which communication relating to an enterprise unit shall be sent.
  • Information with respect to enterprise social category.
  • Name of the authorized person of the enterprise unit.
  • Nature of operation of the enterprise unit. The following nature of the operation is listed:-
  • Perennial: if the enterprise unit is under operation throughout the year, the nature of operation of the enterprise unit is perennial.
  • Seasonal: if the enterprise unit is under operation in one or two seasons only out of the year, the nature of operation of the enterprise unit is seasonal.
  • Casual: if the enterprise unit under operation only when the requirement comes, and when there is no expectation of continuing the work, the nature of operation of the enterprise unit is casual.
  • Cluster name to which the enterprise unit belongs.
  • Website  address of the enterprise unit (if any)
  • A special category of the entrepreneur like serviceman, a person with a disability, woman, minority etc. (if any)
  • Is the enterprise unit registered under The Factory Act 1948?
  • Is the enterprise unit an Ancillary?
  • Is the enterprise unit registered under the Shop and Establishment Act?

2. Enterprise and Product Details engaged in the manufacture

  • Address of the enterprise unit.
  • State in which the enterprise unit is located.
  • District in which the enterprise unit is located.
  • Pin code in which the enterprise unit is located.
  • A number of a person employed in the enterprise unit.
  • Installed capacity of the enterprise unit in terms of yearly production on a specified unit basis.
  • Investment undertook in plant and machinery.
  • Current power load in KW/HP.
  • Description of the product offered from the enterprise unit.
  • Description (major raw material) of the product from the enterprise unit. Information relating to at least one raw material is necessary.  
  • Name of the major buyers of the producers of the enterprise unit or the recipient of the services of the unit.
  • Turnover of the last year in lakhs.
  • Details of the product or the services rendered of the enterprise unit. At least details of one product are necessary.   
  • Product name so manufactured by the enterprise unit.
  • HS code of the product so manufactured by the enterprise unit.
  • The production capacity of the enterprise unit per annum.
  • Measurement quantity of the product manufactured from the enterprise unit (for example, kg, meter, litre).  

3. Enterprise and Service Details engaged in providing or rendering services

  • Address of the enterprise unit.
  • State in which the enterprise unit is located.
  • District in which the enterprise unit is located.
  • Pin code in which the enterprise unit is located.
  • A number of personnel employed in the enterprise unit.
  • Investment undertook in plant and machinery.
  • Current power load in KW/HP.
  • Description of the services offered by the enterprise unit.
  • Name of the major buyers or the recipients of the services of the unit.
  • Turnover of the last year in lakhs.
  • Details of the product or the services rendered of the enterprise unit.
  • Product name so manufactured by the enterprise unit.
  • HS code of the product so manufactured by the enterprise unit.

4. Other Details

  • Bank name of the enterprise unit.
  • Bank account Number
  • IFSC Code of the bank

5. Assistance Details

  • Name of the Development Organization from which any assistance is to be sought.
  • Name of the scheme of the development organization under which the assistance is sought.
  • Amount of assistance sought.
  • Date on which the assistance is sought.

6. Association Details

  • Name of the association in which the enterprise unit is a member.
  • Date on which the applicant is a member of the association.
  • Hand holding by the Development Organization (if any).
  • Name of the Development Organization in case they have received any hand-holding support from them for enrolling in MSME DataBank

7. Appreciation / Award Details

  • Name of the award received.
  • Details of the award received.

Various Advantages of getting a Udyog Aadhaar Memorandum and Udyog Aadhaar Certificate as provided under MSME Registration Services

The advantages of getting a Udyog Aadhaar Memorandum and Udyog Aadhaar Certificate provided under MSME Registration Services are as follows:-

  1. Protection against late payments.
  2. Quicker resolution of disputes.
  3. Free collateral loans from a bank.
  4. Waiver of stamp duties and registration fees.
  5. Barcode registration subsidy.
  6. Subsidy on NSIC performance and Credit ratings.
  7. Counter guarantee from the government of India via CGSTI.
  8. Lower interest rates from banks.
  9. 15% subsidy under CLCSS scheme for technological advancement.
  10. Exemptions while applying for Government tenders.
  11. Concession in electricity bills.
  12. Reimbursement of payment made while obtaining ISO Certification.
  13. 1% exemption on interest in Overdraft.
  14. Increase ineligible loan limit from Rs. 25 lakh to Rs. 50 lakh.
  15. Reservation of products exclusively manufactured by MSME/SSI.
  16. Easy process of registration and approval for obtaining licenses.
  17. Eligible for IPS subsidy.
  18. Preference is given in the allocation of government tenders.
  19. Reduced rate of interest from banks.
  20. 50% subsidy for patent registration.       

Above listed are some of the benefits of the Udyog Aadhaar registration as provided by the MSME Registration Services that a holder can enjoy, as per the schemes introduced the same benefits can be enjoyed by the Udyog Aadhaar holder.   

 

Frequently Asked Questions related to Udyog Registration in India as provided under MSME Registration Services

What are the salient features of Udyog Aadhaar registration that is provided under MSME Registration Services ?

The salient features of Udyog Aadhaar registration are as follows:-

  • Online registration of Udyog Aadhaar.
  • Registration of Udyog Aadhaar is absolutely free and the process is also very simple which can be easily availed under MSME Registration Services.
  • A complex process of documentation simplified.
  • The applicant can apply for more than one.
  • Details of the entrepreneur can easily and conveniently be captured through the Udyog Aadhaar form.
  • State level agencies dealing with MSMEs such as NSIC, KVIC, Coir Board can assist in these enterprise units in registering and linking scheme benefits.
  • The entrepreneurs can seek information of various schemes and services offered by the Ministries and Departments as well as apply online for those schemes and schemes.
  • Industry Association and Business Member Organization can also assist the enterprises in registration and joining the formal company.
  • Banks and non-banking financial corporations can also encourage these enterprises to get the Udyog Aadhaar registration.
  • Rating agencies can be impaneled for Performance and Credit Rating schemes etc can play a key role in promoting and encouraging the enterprises for Udyog Aadhaar registration.      

Has UAM (Udyog Aadhaar Memorandum) replaced EM-I/II ?

Yes. After the notification of 18/09/2015, the filing of EM-I/II by the States or Union Territories should be discouraged. Instead, attempts should be made to promote and encourage the filing of UAM on the portal thus created by the Ministry of MSME i.e., http://udyogaadhaar.gov.in.

Will multiple systems of registration prevail after the introduction of Udyog Aadhaar ?

No. All other previous online or offline mode of registration of MSMEs maintained by the Central, State and Union Territory government shall cease to operate. Such online platforms will be allowed to exist for the time being only to enable access to useful data for making decisions. Therefore, there shall be only one mechanism of registration i.e., Udyog Aadhaar as provided under MSME Registration Services.

Who has to register for Udyog Aadhaar under MSME Registration Services ?

Any enterprise engaged in the manufacturing of a product or rendering of service which meets the turnover criteria of Udyog Aadhaar registration can get MSME registration as provided by the MSME Registration Services. Otherwise, the enterprise has to be registered under the Companies Act, 2013.

What is the difference between Udyog Aadhaar registration provided by the MSME Registration Services and Company registration ?

The two are poles apart. The Udyog Aadhaar registration provided under MSME Registration Services is concerned with the micro, small and medium enterprises classified and defined in terms of investment in plant and machinery and equipment. Company registration is for the registration of business entities such as private limited company, limited liability partnership, partnership, one person company etc. Udyog Aadhaar is managed by Ministry of Micro, Small and Medium Enterprises as a part of MSME Registration Services, while a company is administered by the Ministry of Corporate Affairs. The former is guided by the MSME Act, whereas the latter is governed by the Companies Act, 2013.

What type of business can be started under MSME Registration Services ?

Any kind of manufacturing and service-related business can be started under the Udyog Aadhaar or MSME Registration Services. There is no restriction on the kind of business. Only one universal condition prevails i.e., the business should be lawful and not unlawful.

When does the applicant get GST number ?

Under the MSME Registration Services, when the applicant get certification from Udyog Aadhaar that the enterprise is a micro, small or medium and is an entity incorporated in India, the Udyog Aadhaar shall be treated as a registration certificate and thereafter the applicant can apply for the GST number. Application for GST is also one of the services provided under MSME Registration Services.

Is registration under MSME/ SSI mandatory ?

No. MSME/ SSI as already stated above is fully voluntary. The entrepreneurs are inclined to getting their enterprise registered under the Act to take advantage of the offers and schemes of the government.

What is the validity of the MSME Provisional Registration Certificate ?

An MSME Registration Certificate is valid for five years. Even after five years, the enterprise unit remains non-operational, the applicant needs to again apply for the registration. Application for the same can be made through MSME Registration Services. Once permanently, the operations have started, the applicant can apply for the permanent license.

How to do correction in Udyog Aadhaar under MSME Registration Services ?

MSME Registration Services do provide the option to make a correction in Udyog Aadhar number and also application. Correction in the Udyog Aadhar can be done in the same manner as it is edited or updated. The applicant can edit or update the Udyog Aadhaar in three steps:-

Step 1: fill the application form.

Step 2: make an online payment of Rs. 499.

Step 3: get the changes done instantly.

How to submit the documents online while filing for Udyog Aadhaar memorandum online under MSME Registration Services ?

The documents required to be submitted online need to be self-attested. No supporting documents are required while filing for Udyog Aadhaar memorandum.

Who can access data from the Udyog Aadhaar memorandum portal under MSME Registration Services ?

The portal shall have adequate and suitable provisions to permit the State government officials including GIM DICs to have a password protected access to all the data within their jurisdiction.

Is it mandatory to inform about the closing of the business to the Udyog Aadhaar memorandum ?

There is no compulsion on the part of the entrepreneurs to inform about the closure of their business to the Udyog Aadhaar memorandum.

What is the role of Udyog Bandhu in the Udyog Aadhaar memorandum ?

This concept of Udyog Bandhu shall remain unaffected primarily because the role of promoting and encouraging the creation of the enterprises in the States and Union Territories shall not change whatsoever through Udyog Aadhaar memorandum.

What will happen to those enterprises which don’t have an aadhaar number ?

Currently, the aadhaar number is mandatory for every enterprise registering under the Udyog Aadhar memorandum.

In the past decades, India has been generating employment and opening industries particularly focussing on the rural areas. The growth of the rural sector has added to the socio-economic development of India. MSME Registration Services play very important role in this regard by providing various facilities to the small traders and businessmen such as Udyog Aadhar, MSME Registration Certificate, etc. Udyog Aadhaar is a milestone in this regard. It was implemented in 2006 on the recommendation of Kamath Committee. Udyog Aadhaar registration in India is a simple and paperless process. Company Vakil is providing this kind of services to their customers. For more detail visit the company vakil website.