Business Aadhar, often called Udyog Aadhar, is unique 12-digit ID number assigned to business entities. The Indian government’s Ministry overseeing Micro, Small, and Medium Enterprises issue this specific ID to Small & Medium Enterprises. In August 2020, the ministry release information about the existing Udyog Aadhar Memorandum and unveil a new registration system for Small & Medium Enterprises known as Udyam Registration. In this blog, we shall see process to migrate from Udyog to Udyam registration.
Understanding Udyog Aadhar Memorandum
UAM is a quick, one-page registration process for MSME registration. It includes essential details about the applicant, like self-certified business information such as bank account details and promoter information. Essentially, UAM provides a unique identification number mainly for MSMEs.
Necessity of Transitioning from Udyog to Udyam Registration
Businesses registering under Udyog Aadhar can access various government perks, include low-interest loans and government funding, among other business-supporting advantages.
As per the official notification, the validity of existing MSMEs registered under EM or UAM (MSME/Udyog Aadhar) lasts until December 2021. Therefore, it becomes crucial for enterprises under EM-Part II or UAM to undergo the migration process and register anew on the Udyam Registration website.
Advantages of Udyam Registration
To migrate from Udyog to Udyam registration provides numerous advantages to enterprises:
1. Efficient Handling of Licences, etc. : Streamlines the process for enterprise that are possessing MSME Certificates to acquire approvals, licences, and also registration in any domain. This simplification facilitates interactions with pertinent authorities through the MSME Registration Certificate.
2. Direct Tax Exemption: Businesses with Udyam Registration can enjoy direct tax exemption in the initial year, as outlined in the government scheme and based on the nature of business activities.
3. Concession in Electricity Bills: Enterprises holding a Udyam Registration Certificate can apply for concessions on electricity bills through a straightforward application to the electricity department, supported by the Registration Certificate.
4. Excise Exemption Scheme: Companies with MSME or Udyam Registration can benefit from excise exemption in the initial year, following the guidelines of the Excise Exemption Scheme established by the Government of India and dependent on business activities.
5. Lower Rate of Interest from Banks: Businesses with MSME Registration enjoy a reduced rate of interest compared to other enterprises, making financial support more accessible.
6. Half-price Subsidy for Patent Registration: Businesses holding MSME or Udyam Registration Certificates can seek a 50% subsidy for patent registration, adhering to the conditions specified by the relevant authority.
Crucial Documents Needed to Migrate from Udyog to Udyam Registration
To successfully migrate from Udyog to Udyam Registration, the following essential documents are required:
1. Owner’s Name and Aadhar Number:
Documentation confirming the owner’s identity and Aadhar number.
2. Organisation or Business Name:
Information specifying the name of the organisation or business that is intended to be established.
3. Type of Organisation or Enterprise:
Details clarifying the type and structure of the organisation or enterprise.
4. Enterprise Details (Previous Registration):
Documents related to the previous registration of the enterprise, if applicable.
5. National Industrial Classification (NIC) Code:
Identification of the specific National Industrial Classification Code relevant to the business activities.
6. Current Activities of the Firm:
Documentation outlining the present activities and operations of the firm.
7. PAN Number and Entrepreneur’s Expenditure:
PAN (Permanent Account Number) details and a record of the overall expenditure made by the entrepreneur in the organisation.
8. Total No. of Employees or Workers:
Information of how many total no. of employees or workers employed by the organisation, segregated by gender.
9. Entrepreneur’s Email ID and Mobile Number:
Contact details, including email ID and mobile number, for communication with the entrepreneur.
10. Current Address and Owner’s Account Details:
Verification of the current address of the enterprise and the account details of the owner.
Procedure to Migrate from Udyog to Udyam Registration
The process to migrate from Udyog to Udyam registration is as follow”
Step 1: Visit the Official Udyam Registration Website
Begin by accessing the official Udyam Registration website.
Step 2: Choose “For Those Already Having Registration as UAM”
On the homepage, locate and click on the option that corresponds to entities already registered using Udyog Aadhar. This option distinguishes those entities migrating from Udyog.
Step 3: Enter Udyog Aadhar Number
Input your Udyog Aadhar Number in the designated field.
Step 4: Select Verification Method
Choose one of the provided verification options. You can opt for mobile number verification or email ID verification.
Step 5: Verification and Authentication
The system will then verify the details provided. If there are no issues and your Udyog Aadhar is successfully authenticated, you will receive a notification prompting you to revisit the site to complete the process.
Step 6: Await Udyam Certificate
After successful verification, wait for a message indicating the completion of the process. Subsequently, revisit the site to obtain your Udyam Certificate.
Step 7: Avail Benefits
Once you received the Udyam Aadhar Certificate then, your company becomes eligible for avail the associated benefits.
Final Thoughts
To migrate from Udyog to Udyam registration involves a streamlined process to access enhanced benefits for enterprises. By visiting the official Udyam Registration website, choosing the option for those already registered under Udyog Aadhar, and providing the Udyog Aadhar Number, businesses initiate the migration. The verification step through mobile number or email ID ensures account security. Successful authentication leads to receiving a notification to revisit the site for completion. Once the Udyam Certificate is obtained, enterprises gain eligibility for a range of advantages, marking a crucial step in optimising the benefits to migrate from Udyog to Udyam registration.
