What is Udyog Aadhar? Free Registration Process & Key Benefit

Sanil Basutkar

Author

In 2023, MSMEs contributed to 45.56% of exports in India, employing over 120 million Indians. A macro portion of the entire national economy is supported by the employment created by these MSMEs. After the agricultural business, the MSME sector generates the highest income for the entire country. The Indian government made a support program in September 2015, known as the Udyog Aadhar Scheme, that directly supports the financing and registration of the MSMEs. This online registration process is developed by the government to let MSMEs have a no-interruption registration without undergoing any bureaucratic process. Let’s explore more on Udyog Aadhaar free registration process here.

What is Udyog Aadhar

Udyog Aadhaar is a standard identification system for registered businesses to acquire a unique identity. Udyog Aadhar follows a similar structure for businesses just as Aadhaar identification for the residents of India. The primary objective is to facilitate the seamless registration of businesses especially MSMEs and support them in leveraging the Udyog Aadhaar benefits such as subsidies and promote strategic growth of the businesses.

Udyog Aadhar Benefits for Businesses

Udyog Aadhaar gives a unique identity to businesses and presents the scope to leverage the benefits associated with the identity. Here are 5 benefits of Udyog Aadhaar registration:

The registered businesses have ease of access to loans without a guarantee at a reduced rate of interest.
Availability of financial support for registered businesses to participate in foreign expos.
The registered businesses have the provision of leveraging the government subsidies.
The scope to enroll for micro-business loans and other relevant schemes.
Seamless support of government provisions for companies.

Documents Required for Udyog Aadhar Registration

The Udyog Aadhaar Registration has a structured process that requires a list of business-related documents for approval. Here is the list of the required documents:

Name of the business owner
Aadhaar number of the business owner
The category used for registration
The full name of the business
The business structure and type
Bank statements
Record of key activities
Record of the count of employees
National Industrial Classification Code
Records of District Industry Centre (DIC)
The commencement date

Udyog Aadhar Free Registration Process

The Indian government launched the Udyog Aadhar Scheme in September 2015 as an initiative to provide ease of access to the benefits, subsidies, and schemes introduced by the government. The Udyog Aadhaar free Registration requires a set of business-related documents to be uploaded along with the online application form. When initiating the registration process, it is important to have Aadhaar info ready and then follow the steps mentioned here:

Visit the official website and log in with your information.
Fill in the details related to your Aadhaar number and name in the sections ‘Aadhaar number’ and ‘Name of the business owner’.
Check the box and proceed to select ‘Validate and Generate OTP’.
Submit the OTP received via text message.
After the verification is successful, the page will redirect to an application form.
Enter the details related to the name and type of organization accurately. Ensure the ‘National Industry Classification Code’ and ‘Major Activity’ are filed correctly.
After filling in all the details, thoroughly review the information to ensure error-proof data.
Click on ‘Submit’.
The applicant will receive an OTP on the registered number after the page redirects.
Enter the accurate OTP and then click ‘Submit’ to complete the registration process.

Who is Eligible for Udyog Aadhar?

Enterprises are eligible for Udyog Aadhar free registration provided they register themselves in the correct category based on their investment in plants and machinery that can be classified as follows:

Sr. No	Enterprise	Investment	Turnover
1	Micro	Till INR 1 Crore	Upto INR 5 Crore
2	Small	Till INR 10 Crore	Upto INR 50 Crore
3	Medium	Till INR 50 Crore	Upto INR 250 Crore

Difference Between Udyog Aadhar and MSME Registration

The Udyog Aadhaar and MSME Registration processes are very similar but have some differences. The Udyog Aadhaar was launched in 2015 to promote MSMEs for registration and enjoy the benefits of government schemes and subsidiaries. This was further changed to Udyam Registration which is the current portal for MSME registration. Let’s understand the difference between Udyog Aadhaar and MSME Registration (Udyam Registration) as follows:

Sr. No.	Feature	Udyog Aadhaar	MSME Registration (Udyam Registration)
1	Registration Process	Udyog Aadhaar was introduced by the government to promote the registration of companies, especially MSMEs.	The Udyam Registration is a simple, free, and online process that can be completed in a single window conveniently.
2	Declaration	The Udyog Aadhaar has a regular declaration implying the attached documents are authentic. However, it does not have a self-declaration feature and submission of documents is required.	The MSME registration has a self-declaration feature where it is not mandatory to upload documents as proof.
3	Documents required	Udyog Aadhaar Memorandum Certificate formed with the applicant’s Aadhaar card, and PAN number and providing self-certification instantly following the old criteria.	Udyam Registration requires only an Aadhaar card along with self-declaration as per the new criteria issued for MSMEs.
4	Certificates	After the verification process is completed, the applicant is issued a Udyog Aadhaar Certificate.	With MSME registration, a Udyam Registration Number (URN) is issued to the enterprises along with an e-certificate of Udyam Registration. The certificates are sent via email communication as a soft copy with a QR code for instant verification and access to the details of the enterprises.
5	Re-registration	The businesses registered under Udyog Aadhaar need to register again with the Udyam Registration portal.	No re-registration is required.
6	Number of registrations	Udyog Aadhaar allows multiple registrations which are industry-specific.	Udyam Registration allows only one registration for one Aadhaar card, but all kinds of activities that include production, and services, both can be added to the single registration.

Conclusion

The Udyog Aadhaar is a unique identification system for businesses started by the government to promote an increase in registered businesses. The scheme ensures the registration of enterprises especially MSMEs so they can leverage the benefits of government subsidiaries and schemes. The Udyog Aadhar free registration is a simple process with an online application to make it easy and convenient for all applicants.