Key Features of Udyog Aadhaar Memorandum Explained

Let's talk about the backbone of any economy, which are small and medium-sized enterprises. Their contribution towards GDP growth and employment generation is unbeatable. However, the Indian government has come up with measures for supporting and promoting the growth of such enterprises.

Among a range of initiatives, we're going to highlight the initiative, namely the Udyog Aadhaar Memorandum (UAM). The chief aim of UAM is to simplify the registration process and provide as many benefits to SMEs. Keep reading to understand the Udyog Aadhaar Memorandum and its features for small businesses in detail.

What is the Udyog Aadhaar Memorandum?

Udyog Aadhar Memorandum can be described as a government registration process that was introduced by the Ministry of Micro, Small, and Medium Enterprises for small and medium-sized enterprises out there. It's a kind of online registration process whose aim is to simplify the process of MSME registration with the replacement of the traditional process to obtain multiple registrations. Generally, the traditional process comprises Entrepreneurship Memorandum (EM-I/II) registration and Small Scale Industry (SSI) registration.

The Udyog Aadhaar Memorandum is mainly based on the Aadhaar card of the partner, proprietor, or director of the business entity. It comes with a unique identification number, which is known as the UAN or Udyog Aadhar Number. As a result, it facilitates the ease of doing business for MSMEs because it allows them to avail of a range of incentives and benefits provided by the Indian Government.

How to register for the Udyog Aadhaar Memorandum?

Step 1: Access the Udyog Aadhaar Portal

Visit the official portal of Udyog Aadhar, to begin with your registration process journey. Make sure to have a stable internet connection, and the necessary documents should be there to proceed.

Step 2: Choose the Type of Aadhaar

Now, you can select the appropriate option on the basis of having an Aadhaar number or not. Choose the "Aadhaar Number" option when you have an Aadhaar number, otherwise, go for "Entrepreneurship Memorandum-I (EM-I)."

Step 3: Enter Personal Details

As a next step, fill in your details like disability status, gender, social category, name, and Aadhaar number. Make sure that the information you've provided is accurate and matches the Aadhaar card.

Step 4: Enter Enterprise Details

It's time to provide details related to your enterprise, like the name, PAN, location, type of organization, and activities undertaken. Before you proceed to the next step, it would be better to verify your information.

Step 5: Bank Details

Don't forget to enter bank account details, such as the bank name and IFSC code. Such kind of information is vital to avail a range of government subsidies and schemes.

Step 6: Additional Information

Additionally, you can provide any additional required information like investment in plant and machinery, number of employees, and other relevant details about the enterprise.

Step 7: Verification

Always review all your provided information and ensure accuracy. Once you're done with verification, submit your application for Udyog Aadhaar Memorandum registration.

Step 8: Acknowledgment

With the successful submission, you'll receive an acknowledgment along with a unique UAN or Udyog Aadhar Number through SMS or email. You can save the number for any future reference.

Step 9: Download Certificate

After a few days of your submission, your Udyog Aadhar Memorandum certificate will be all set to download from the portal. Such a certificate acts like a proof of registration made under the MSME sector.

Key Features of Udyog Aadhaar Memorandum

1) Online Application Process

The entire registration process for UAM can be conducted online with the aid of an official portal which makes it convenient for you to register the business at any time and anywhere. Such an online application process can boost the transparency and accessibility of the registration process.

2) Instant Generation of UAN

With the successful submission of your registration form, the UAN is generated instantly. After that, it's sent to the registered email address and mobile number of the applicant. Due to the quick generation of UAN, you can access a range of incentives and benefits offered by the government.

3) Ease of Updating Information

When there is a case of modification or changes, the Udyog Aadhaar Memorandum lets the registered MSMEs update their information online. So, the flexibility to update information allows the registration details to remain up-to-date and accurate, which can aid in availing benefits for MSMEs.

4) Single Window Registration

Udyog Aadhaar Memorandum comes with a single-window registration process, which eliminates the requirement for multiple registrations like EM-I/II registration and SSI registration. Thus, it simplifies the registration process and saves your efforts and time.

5) Simplified Documentation

In comparison to traditional registration processes, the Udyog Aadhaar Memorandum needs only minimal documentation. However, you should provide basic details like your name, business activities, Aadhaar number, and other relevant information. The simplification of documentation can reduce bureaucratic hurdles and let other MSMEs register under the scheme.

6) Access to Government Schemes and Incentives

If you're a registered MSME under the UAM, then you're eligible to avail several government incentives and benefits like loans at concessional rates and preference in government procurement. Such kinds of incentives and schemes aim to promote the development and growth of MSMEs.

Conclusion

So, it can be said that the Udyog Aadhaar Memorandum is considered one of the significant initiatives by the Indian Government which can develop and promote the growth of SMEs in the country. All you're required to just register under the UAM to unlock a range of opportunities and benefits for your expansion and growth.