Uhyog Adhar & Msme

The idea behind introducing Udyog Aadhar was to simplify the procedural format that business owners had to go through in order to register their business under Micro Small Medium Enterprise or MSME.

Before the introduction of Udyog Aadhar, the procedural format for the same was quite hectic and a time-consuming bureaucratic process that used to require handling of lots of paperwork. However, with the introduction of Udyog Aadhaar, things have changed and to some extent, have improved for medium, small and micro-enterprises.

If you own a medium, small or micro enterprise and you haven’t registered your MSME yet, you should know that on registering your MSME via UAM (Udyog Aadhar Memorandum), you will be liable to enjoy numerous benefits.

Before the introduction of the UAM system, there used to be a former system of EM-I/II (Entrepreneur Memorandum). Under this system, entrepreneurs used to opt for a heterogeneous system.

Some of them used to rely on the national portal, and some of the states had their own individual portal for carrying out MSME registration. Additionally, there were a few who used to rely on manual paperwork.

However, things have changed after the replacement of the old system.

What Is Udyog Aadhar?

The main question that a number of newbie entrepreneurs have in their mind is what Udyog Aadhar really is. If you are also looking for an answer to this question, you are in the right place as you will finally get an answer here.

Udyog Aadhar is nothing but a government registration that is provided along with a recognition certificate and a unique number in order to certify small/medium businesses or enterprises.

The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.

The owner, director or proprietor of the entity will provide his/her 12-digit Aadhar Number, whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company or anything else. It should have the recognition certificate provided via the MSME registration process.