How to get Register MSME? Online registration of MSME/ Udhyog Aadhar

Now that government is announcing various benefits for MSME registration people have started registering their organisation under MSME and therefore the load on the website has increased between 10am to 5pm and this movement of government will help in organizing the various unorganized sector.

Before moving on with the process let me provide you certain important imformation:

The document required for registering as MSME is Udhyog Aadhar i.e. Udhyog Aadhar is the certificate of a MSME.

There is only one website for registering Udhyog Aadhar i.e. https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx rest all websites having name as www‎.msme-udhyogaadhaar.com or www.msmeregistration.org are not official website and are just third party service provider who would charge some fees for their service but do remember there is no government fees for applying Udhyog Aadhar and therefore I am not providing direct link to such website and many people are going on these website thinking they are official website but that’s not the case.

If they are charging any fees that’s fine because they are private organisation and they are providing you the service and to run their organisation they will have to charge fees.

Now let’s get back to the MSME registration:

Any type of organisation can apply for the udhyog aadhar be it proprietorship, partnership, company etc. They must be engaged in manufacturing of article or thing or providing service. The definition of MSME has been changed by the government. You can read the new definition HERE.

There are only two important things required to apply for online Udhyog Aadhar:

1. Authorized person must have a Aadhar card. In case of proprietorship firm it will be the owner and in case of partnership firm/ LLP it can be partner and in case of company it can be director.

2. Mobile number must be linked with the Aadhar number to receive OTP.

Even if you don’t have Aadhar number or it is not linked with mobile number you can register for same offline.

 

Some important points to keep in mind while applying for Udhyog Aadhar:

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. E.g. if Raj Pal Singh has his name as Raj P. Singh, the same should accordingly be entered if the name does not match with the Aadhar Number, the applicant will not be able to fill the form further.

To Validate Aadhar:-

Validate Aadhar– The applicant must click on Validate Aadhaar button for verification of Aadhaar, after that only user can fill the form further.

Reset– The applicant can click on reset button to clear the field of Aadhaar No and Name of the owner for different Aadhaar.

OTP will be sent to your mobile number registred with UIDAI. If your mobile number is not registered with UIDAI, please follow instructions given on Pop up window.

3. 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.

4. Gender– The Applicant can select gender of Entrepreneur.

5. Physically Handicapped– The Applicant can select Physically Handicapped status of Entrepreneur

6. 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.
Combination of same Aadhaar Number and Enterprise Name can be added second times. Only additional details can be added or deleted at the time of editing

7. Type of Organization– The Applicant may select from the given list the appropriate type of the organisation for his/her enterprise. The Applicant must ensure that he/she is authorised 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.

8. PAN Number – The Applicant have to enter PAN Number in case of Co Operative,Private Limited, Public Limited and Limited Liability Partnership It. Will be optional in remaining type of Organisation

9. Location of PlantThe Applicant may add multiple plant location in one registration by clicking Add Plant button.

10. Official 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.

11. Date of Commencement– The date in the past on which the business entity commenced its operations may be filled in the appropriate field.

12. Previous Registration Details(if any)– If the Applicant’s enterprise, for which the Udyog Aadhaar is being applied, is already issued a valid EM-I/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.

13. 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 days 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.

14. Major Activity– The major activity i.e. either “Manufacturing” or “Service” may be chosen by the enterprise for Udyog Aadhaar. If your enterprise involves in both type of activities and if major work involves in Manufacturing and small portion of activity involves in Service sector then select your major activity type as “Manufacturing” and if major work involves in Services and small portion of activity involves in Manufacturing then select your major activity type as “Services”

15. National Industry Classification Code(NIC Code)– The Applicant may choose multiple National Industrial Classification-2008 (NIC) Codes to includes all their activities. Which means user can select multiple NIC code of Manufacturing and Service sector by clicking “Add More” button.If you want to add Manufacturing then select “Manufacturing” radio button and keep on adding by clicking “Add More” button otherwise if you want to add Service then select “Services” radio button and keep on adding by clicking “Add More” button. The NIC codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program implementation, Government of India.

The Applicant may use National Industrial Classification-2008 (NIC) Codes searching facility to avoid 3 steps selection process.
Example: User has to write matching key word (2 or more characters) in Search text box in Column No 11 . Then all related NIC CODEs will be listed (including Nic 2 Digit, Nic 4 Digit & Nic 5 Digit) with code and description. If User selects NIC 5 Digit code, then automatically all the related fields(like NIC 2 Digit, 4 Digit, 5 Digit & Enterprise Type) at column 11 will be automatically filled. Same way, If user selects NIC 4 digit, then related field of 2 digit NIC Code will filled, but user has to select NIC 5 digit from drop down(In this case 2 steps are required).

16. Person employed– The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field.

17. lnvestment in Plant & Machinery / Equipment– While computing the total investment , the original investment ( purchase value of items) is to be taken into account excluding tho 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.

18. 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.

19. Submit– The Applicant must click on Submit button to generate OTP which will be sent to email id mentioned for registration.

20. The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.

21. Enter Captcha– The Applicant must enter Captcha before clicking Final Submit button.

 

Some FAQ:

1. What to do if one doesn’t have aadhar number or mobile number is not linked?

A. 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 18-09-15.

2. What is number of employees and investment in plant and machinery mean?

A. The number of employees does not have a bearing on the size or type of the enterprise as per the MSMED Act’2006. A single figure indicating “persons employed’ is being captured in the UAM.
Investment in Land, Building etc. are not material for classification of MSMEs. The Act permits classification only on the basis of the Investment on Plant & Machinery.

 

Note:

Although it’s a simple and easy process and your Udhyog aadhar get’s generated within 5 mins it is always advisable to get it done by a professional or CA, as it asks for various information about your organisation which might get linked to other government department and you might get into trouble.

To get our assistance in applying for your Udhyog Aadhar CLICK HERE, fill in your details and our expert would get in touch with you.

 

This article is just for information purpose and are personal views of the author. It is always advisable to hire a professional for practical execution or you can mail us. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.