Finance Minister Nirmala Sitharaman announced a slew of measures for MSMEs today, including a ₹50,0000 crore into MSMEs that are eligible and viable. So, if you are looking to set up a new small business, you can register it on the Udyog Aadhaar Memorandum (UAM) portal.
Over 1 crore MSMEs have registered for the Udyog Aadhaar all over India since September 2015. To avail the benefits, loans and schemes the Government announced today, register your business on the portal. Here is everything you need to know.
What is Udyog Aadhaar Memorandum (UAM) portal?
The Udyog Aadhaar Memorandum (UAM) portal is a one-page registration form which helps MSMEs register themselves and self-certify all business details like a bank account, promoter details etc. The registration process is free of cost.
Using the UAM, businesses can self-declare their existence, bank accounts, Aadhaar details and more. Here’s a quick look into how you can register for the Udyog Aadhar Memorandum
- Login to the UAM website here
- Make sure you have a registered Aadhar card, Enter your Aadhar number and name of the business owner.
- Check the box of Terms and Conditions
- Click on ‘Validate and Generate OTP’.
- Enter the OTP you receive on your registered mobile number.
- Once verified, you will have to fill an online form.
- Fill in all the fields – documents mentioned below.
- Click on submit and re-enter the next OTP you receive on your mobile number.
- Click the final submit button.
- You can file for more than 1 UAN (Udyog Aadhaar Number), using the same Aadhaar card.
- Once the registration process is done, a UAN number will be sent via email on the basis of which they can avail various Central and State government benefits for MSMEs.
- Once the registration is accepted, the Government gives you a recognized certification. This certification will further help you avail benefits depending on your business category.
Eligibility to register on the UAM portal:
In order to help MSMEs combat lockdown liquidity crunch and avail benefits, the Government has fast-tracked the definition of MSMEs. Now MSMEs are classified based on their annual turnover and investment, which can be verified on the GSTN portal. You are eligible for registration on the UAM portal based on the classification as shown below:
Important Information for Udyog Aadhaar Memorandum registration
Make sure you have these documents with you while registering your business in Udyog Aadhar :
- Aadhaar card number
- Name of business owner/ business information
- Category of applicant
- Type of organisation
- Bank details
- National Industrial Classification code
- Number of persons employed
- Details of District Industry Centre (DIC)
- Date of commencement of business
Why should you register on the UAM portal?
Here are some of the benefits MSMEs can avail from the Udyog Aadhaar Memorandum:
- Once registered, you can access many MSME government schemes. Benefits include exemption from excise and direct taxes, easy loans with low-interest rates, loans with credit guarantee, government subsidies and more.
- Registered businesses are also eligible to receive financial aid for participation in various foreign expos. These are ideal places to network and showcase products.
- Easily open a current account for your business.
- Avail reduced prices for filing patents and trademarks.
The Government has several benefits introduced by the government to help MSMEs grow in India. Some of these benefits include a reservation policy and a Credit Guarantee Scheme.