Udyam Registration is a re-classified version of the Udyog Aadhaar Memorandum which earlier was known as Udyog Aadhaar registration. Udyog Aadhar was a twelve-digit unique number used for identification purposes for Micro, Small, and Medium Enterprises. It is an old system of registration where a UAM Number was generated. Registering to Udyog Aadhar provided companies with several benefits from the government, such as being able to receive loans at low rates of interest, receiving funding from the government, and many other benefits that help companies in various ways.
But with effect from 1st July 2020, MSME Registration / Udyog Aadhar has been replaced by a new system known as Udyam Registration. Even if you have already obtained MSME Registration / Udyog Aadhar before 1st July 2020, they are no longer valid. Companies that are already registered for a Udyog Aadhar can no longer avail of the benefits without migration/registering to Udyam Registration.
The new system is different from the old system in several ways. It uses a QR Code to track and verify your registration certificate. It helps any agency tied with the government to verify your certificate and make sure of its authenticity. It also automatically pulls data from the ITR and GST returns filed by your enterprise in order to categorize the enterprise into Micro, Small or Medium Enterprise. You no longer need to manually enter this data and prove it with documents as the same is auto-populated by the system.
According to the official notification, the existing MSMEs registered under the EM (Entrepreneur Memorandum Part-II or UAM (MSME/Udyog Aadhar) are valid till December 2021. Companies or enterprises that are already registered for Udyog Aadhar can no longer avail of the benefits without Udyam Aadhar Registration. So, migrating from Udyog to Udyam Registration becomes important. By getting Udyam Registration, you can avail a plethora of benefits -
⇀ It enhances the chances of the business getting future loans and an upper hand in various other legal matters.
⇀ Several schemes are also being run by the government to benefit the SMEs where loans are granted to them at low-interest rates.
⇀ Businesses get tariff subsidies and tax and capital subsidies.
⇀ The government support registered businesses to recover delayed Payments.
⇀ It provides discounted IPR Registration Fees.
⇀ It provides benefits from various Tax exemptions and additional benefits in SEZ.
⇀ Registered businesses get special preference in the procurement of government tenders & also get access to Government Trade Portals.
⇀ All MSMEs which are registered as per the requirement would get any form of reimbursement for ISO certification.
⇀ Registered businesses will satisfy the eligibility criteria for electricity bill concessions.
The process of migrating Udyog Aadhar to Udyam Registration is quite simple and straightforward and can be done online. All you need to do is follow the simple steps, fill in the required details and submit the application. However, it is always advisable to read the instructions carefully before starting the application process. This will ensure that there are no delays or problems in the migration process.
Step 1: Visit the Government MSME portal udyamregistration.gov.in
Step 2: On this home page, different options are provided for different people depending on whether they have already registered using Udyog, whether they have registered earlier through any Assisted filling or if they are new to Udyam and are registering themselves for the first time. Since you have registered earlier with Udyog Aadhar, select “For those already having registration as UAM”.
Step 3: You will be taken to a different page where you will be needed to put your Udyog Aadhar Number.
Step 4: After providing your Aadhar number, the next step is to do your identity verification. You will be provided with two verification options – Either to verify your account using your previously provided mobile number or to verify the account using your previously provided email address through the OTP. Out of these two, you can choose whichever is convenient for you.
Step 5: Once this process is completed, the system will verify all the information provided by you. If no issue is found and your Udyog Aadhar is authenticated successfully, after a couple of days, you will receive a message to revisit the system for the completion of the process. After this, you shall receive your Udyam Certificate which has a unique 19-digit permanent registration number having lifetime validity. The certificate can also be used as an Identity Document for your enterprise at financial institutions like banks, etc.
Following are some essential documents required to migrate from Udyog to Udyam Registration:
⇀ PAN Card, Aadhar Card
⇀ Business’s Address Proof
⇀ Copies of Sale Bill and Purchase Bill
⇀ Partnership Deed / MoA and AoA
⇀ Copy of Licenses and Bills of Machinery Purchased
⇀ Details of your previous registration
⇀ National Industrial Classification (NIC) Code;
⇀ Current activities of the firm;
⇀ PAN number & the overall expenditure made by the entrepreneur in the organization
⇀ Current address & account details of the owner
Migration to Udyam is not mandated by statute and is at the sole discretion of the entrepreneur, but having said that, the registration proves beneficial for enterprises to avail of benefits from the Government. It relishes a plethora of benefits from the government in various forms like schemes, support and concessions offered and at the same time builds image and credibility in the business market, considering the fact that the MSME sector is developing at a rapid pace and helps in promoting employment opportunities in rural and backward areas. They are recognized for having the highest rate of economic growth and have propelled India to new heights due to their low investment requirements, flexibility in operations, and ability to develop suitable native technology.