The micro, small and medium enterprises need to be registered under the Micro, Small, And Medium Enterprises Development Act, 2006 for availing various benefits and relaxations provided under various government schemes to the industry. This article shares details on the need for Udyog Aadhaar Memorandum and the salient features explained by Edge Legal.
Udyog Aadhaar Memorandum Registration for MSME
A large chunk of enterprises in India are mostly not registered owing to the lengthy paperwork involved in the process and therefore are unable to tap the benefits offered by the government schemes for them.
Udyog Aadhaar Memorandum (UAM) is a one- page registration form for the Micro, Small and Medium Enterprises to get registered under MSME. Udyog Aadhaar registration is replacement of the previous system where lots of documents and details were needed. It constitutes a self-declaration format under which the MSME will self-certify its existence and other minimum information required.
Udyog Aadhaar Benefits
The salient features of UAM are
- Single Page Online Registration-Mobile friendly
- No documentation required
- No fees for Udyog Aadhaar
The Udyog Aadhaar Portal has been set up by the Ministry of micro, small and medium enterprises for online filing of UAM by the enterprises located anywhere in the country. The Udyog Aadhaar portal is also accessible on mobile devices. Udyog Aadhaar registration has enabled the units/enterprises to seek information and apply online abourt various services being offered by all Ministries and Departments simply by using the Udyog Aadhaar Number.
The new system of Udyog Aadhaar offers a single system of registration. The system is capable of delivering assured ease of doing business since 92% of the country’s adult population is already registered under AADHAAR. This initiative of maintaining the data on MSMEs with the Ministry of MSME is likely to save cost in the long run since States/UTs would no longer be required to maintain the same.
The government has received very good response with the simplified Aadhaar based registration system for MSME sector. It is expected that Udyog Aadhaar shall unlock the potential of MSMEs besides improving our international ranking in Ease of Doing Business Index.