Micro Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.
The primary responsibility of promotion and development of MSMEs is of the State Governments. However, the Government of India, supplements efforts of the State Governments through various initiatives. The role of the M/o MSME and its organizations is to assist the States in their efforts to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario.
The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector. As per MSME Act of 2006, all enterprises are expected to register with District Industries Centre (DIC) of their area and file Entrepreneurs Memorandum (EM) 1 for intention to start business if manufacturing or service and file EM 2 after starting production.
A large chunk of enterprises in India are simply not registered due to the cumbersome paperwork involved in the process and, therefore, can't tap the government schemes for them. The Ministry for Micro, Small and Medium Enterprises had in September 2015 notified Udyog Aadhaar to ensure ease of registration and wider coverage of MSMEs to avail the benefits under various Schemes of Central/ State governments. Hence, at present, filing of EM-I has been abolished. Udyog Aadhaar (UA) has been introduced for running units. No need to apply for upcoming units. Udyog Aadhaar Memorandum (UAM) can be filled online on the portal created by Ministry of MSME
Udyog Aadhaar Memorandum (UAM):-
UAM is a one-page registration form which constitutes a self-declaration format under which the MSME will self-certify its existence, bank account details, promoter/owner’s Aadhaar details and other minimum information required. There shall be no fee for filing the Udyog Aadhaar Memorandum. On submission of the form, Udyog Aadhaar Acknowledgement shall be generated and mailed to the email address provided in the Udyog Aadhaar Memorandum which shall contain unique Udyog Aadhaar Number (UAN).
Existing enterprises, which have filed Entrepreneurship Memorandum-I or Entrepreneurship Memorandum-II or both, or the holders of Small Scale Industry registration, prior to the coming into force of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) shall not be required to file Udyog Aadhaar Memorandum, but if they so desire, they may also file the Udyog Aadhaar Memorandum. There is no restriction on filing more than one Udyog Aadhaar Memorandum using the same Aadhaar Number.
The Udyog Aadhaar Memorandum is filed on self-declaration basis, and no supporting document is required to be uploaded or submitted while filing the Udyog Aadhaar Memorandum, but the Central Government or the State Government or such person as may be authorized in this behalf may seek documentary proof of information provided in the Udyog Aadhaar Memorandum, wherever necessary.
Benefits of Udyog Aadhaar:-
There are several benefits of registering with Udyog Aadhaar. Some of the benefits, that registered business receive are:
1.Credit Guarantee scheme
3.Loan without collateral guarantee
5.Easier sanction of bank loans at lower interest rates
6.Interest on Delayed Payments Act which is thrice of the rate stipulated by the RBI
7.Other benefits like opportunities to participate in exhibitions abroad
Online Udyog Aadhaar Registration:-
Udyog Aadhar registration can be completed online at no cost. The following are the details and documents required for the registration of Udyog Aadhaar:
1.Aadhaar Number:-12 digit Aadhaar number issued to the applicant.
2.Name of Owner:-The applicant name as mentioned on the Aadhaar Card issued by UIDAI.