The Ministry of Micro, Small and Medium Enterprises (MSME) of the Government of India has launched a new service called Udyog Aadhar in accordance to Hon’ble Prime minister’s ‘Mann Ki Baat’.
“Some people have suggested that the process of registration for small scale industries should be simple” – Narendra Modi (Hon’ble Prime Minister)
This initiative of Udyog Aadhar has been taken by the ministry to promote ease of doing business. The ministry now aims to promote ways that will allow small scale businesses flourish. The MSME has set up guidelines for the online filling up of Udyog Aadhar Memorandum (UAM). This UAM has replaced the former complex processes of filling Entrepreneurs Memorandum (EM Part I &II). The existing mechanism for filing an EM by a Small scale enterprise now is placed with the respective states or union territories. Some States have made the process easier and online (either through their own portals or via the portal created by this ministry), however, some states still follow the manual process of filing an EM. With the introduction of this new system of filing a single UAM online by enterprises from anywhere in India would put an end to these varying EM filing issues.
Udyog Aadhar: Overview
The Micro, Small and Medium Enterprises Development (MSMED) Act was passed in 2006 to address the issues that troubled or affected MSMEs. The Act seeks the development of these small scale enterprises and also to enhance their competitiveness in the global market.
- Prior to implementation of the MSMED act, the Industrial Development and Regulation Act (1951) was in order.
- Under the MSMED Act, the coverage, and scope of MSME sector was broadened and thus the entire Non-Agricultural sector of the economy was brought under its coverage.
- According to the MSMED act, the MSMEs are classified into two classes:
- Manufacturing Enterprises: These enterprises are defined on the terms of investment in plant and machinery.
- Service Enterprises: The ones that provide or render various services fall under this category of Service Enterprises.
- The limit for Investment in plant and Machinery/Equipment for manufacturing or service Enterprises are given below:
Universalization of registration and Udyog Aadhar Memorandum
The Kamath Committee has pointed rightly that the localized rules and requirements for registration may vary from district to district. These variations may result in the delays in the receiving the EM-II acknowledgment. To put an end to such delays, the committee suggests the following:
- Deemed acceptance of registration (EM-II) within a pre-defined time.
- The requirement of No-Objection Certificate with relation to pollution norms can be discontinued.
- A mobile application with an easily usable interface to augment the registration process.
As per the Kamath Committee’s suggestion, the ministry of MSME, (in collaboration with The National Board of MSMEs and the Advisory committee) has launched a one-page registration form that would be treated as a self-declaration in itself. Under this, the MSME will self-certify its existence, its bank account details, owner’s Aadhar details, and other required information. Base on this the MSME shall be issued online a Unique Identifier that is the Udyog Aadhar Number.
The ministry has also set up the required infrastructure which is the official Udyog Aadhar (UA) web portal: udyogaadhaar.gov.in
One can easily the UAM available on this site. The portal is also mobile adaptable for optimum viewing.
Benefits Of Udyog Aadhar Memorandum. Why should You have it?
- The benefits of Udyog Aadhar are many. The Udyog Aadhar Registration allows Units/Enterprises seek information and apply online for various services offered by the ministries and departments.
- The former cumbersome process of filing of EM-II has been much simplified. Udyog Aadhar will allow a hassle free and easy transaction to the enterprises.
- After registering, the MSMEs will be given a unique number – Udyog Aadhar Number. This number, once received can be used by the units to avail other services.
- Udyog Aadhar Memorandum charges No fee for registration. It is absolutely free.
- One can file more than one Udyog Aadhar.
- No documents will be required for the registration process.
- And much more…
If you are one of that small/medium micro – scale business person, go get your Udyog Aadhar and avail all the associated benefits.
We hope we have been able to discuss satisfactorily Udyog Aadhar. Also, we hope you would benefit from this article. For any clarification, please feel free to leave a comment below.