On September 18, 2015, the Government of India issued the Industrial Memorandum. The memorandum includes all the decisions taken by the Government of India and also about the industry base. This is called Udyog Aadhar Registration Document. With the help of the Udyog Aadhar registration document, all the industry owners can register under the Ministry of Micro, Small, and Medium enterprises.
Every industry has an industrial base. The industrial base refers to a 12 numerical registration number that the ministry of small, medium, and micro enterprises issues. This ministry is running under the Government of India. All the small industries are working or planning to work as new industries. All the industry owners running their small businesses and small industries have to register to get this numerical registration number.
WHAT IS THE INDUSTRIAL BASE UNDER UDYOG AADHAR REGISTRATION DOCUMENT?
Earlier, industrial owners have to complete a lot of paperwork and formalities to complete their registration. Under this ministry, they have to fill the form naming Entrepreneur Memorandum 1 Entrepreneur Memorandum 2. Although the business was quite tricky but through this industrial base, the 12 numerical registration numbers everybody was out of restrictions to fill all the other forms. Many people are establishing their industries at a small scale but now these industries are achieving great heights. Industries not only helped the country to increase the GDP rate but also provides employment to the people. India is moving towards development. To initiate the development and turn the country from developing to a fully developed, all the industries and sectors are trying their best.
HOW ENTREPRENEURS WILL GET INDUSTRY BASE THROUGH UDYOG AADHAR REGISTRATION DOCUMENT?
If any person has a small business, medium, or micro-industry, they have to get their registration done under the industrial base. Now the ministry is working online and people can also register online to get the industrial base through the online system. Applicants do not have to complete the non-essential formalities to get the registration number. Many industrial owners don’t know what is MSME Department.
WHAT IS MSME?
So, the Ministry of Micro, Small and Medium Enterprises Department, MSMED controls all such enterprises at the same scale running across the nation. It also provides financial and technical aid to the industrial owners to start such enterprises. Talking about the author and the scheme the Government of India passed an act in the parliament to implement this policy. In 2006 under the act, the regulating body tried to come up with all the medium and small enterprises and recognize them at the world level and also enhance the level of competitiveness among them. This not only helped the industry to promote globally but also help the small entrepreneurs to develop trading ideas.
WHAT IS INDUSTRIAL DEVELOPMENT REGULATION ACT?
Through these enterprises, the country also helped to increase the GDP rate. Before MSME Department law, business institutions and financial bodies were running under the Industrial Development Regulation Act. The Industrial Development and Regulation Act was passed in the year 1995 and after introducing the MSMED law all the non-agricultural institutions were subjected to this scheme. In MSMED, the ministry includes two parts. First is the manufacturing enterprises and the second is service enterprises. Under the manufacturing enterprises, people make investments.
The Government of India makes investments in small and large plant and machinery. Under the service enterprises, the industries are running these enterprises to take the money and grab the benefits of other services. Now, what are the uses of Udyog Aadhar and why should people know about it?
UDYOG AADHAR REGISTRATION DOCUMENT IN ONLINE MODE
First of all, Udyog Aadhar Registration Document is running in online mode. People can do all the formalities to register under the Udyog Aadhar online. The owners have to self-verify the form before filling and check all the in for ation of the enterprise. To register under the Udyog Aadhar Scheme, entrepreneurs have to provide their personal number, their enterprise, name, address, bank details, and many more. One of the best benefits of the Udyog Aadhar Registration Document is that entrepreneurs can fill more than one industry. The Government of India is not charging any amount of fees to fill this form. After filling up the form and uploading it, the registration number would come to the entrepreneur on the email ID they registered while filling up the form.
DOCUMENTS REQUIRED TO REGISTER UNDER UDYOG AADHAR SCHEME
There are certain documents that the entrepreneurs have to submit while filling up the Udyog Aadhar form. They must have their other number which is a 12 digit number. Entrepreneurs name issued in their other card will be in use for the ownership of the industry. If an entrepreneur has some certificate it is mandatory for them to submit it. To run the industrial business, they have to give a legal name after the business entity. They can also submit their industry-based applications for more than one enterprise.
All the applications have to be registered using the same card number. Moreover, entrepreneurs also have to provide the type of organization. They can get registered their industries under the proprietorship, partnership, public limited, private limited, LLC, and many more. It is necessary for them to complete their address proof, provide them their email address and phone number of the business place.
STEPS IN UDYOG AADHAR REGISTRATION DOCUMENT
While starting the industry, the entrepreneurs have to submit the details of the bank account. The account details must be related to the industry usage. They also have to provide the right number of people working in the industry. To register for the Udyog Aadhar Scheme, first of all, entrepreneurs can make the registration both in online and offline manner. The steps are very simple to register for the Udyog Aadhar. Their applicants can get the benefits of many services that the Government of India or forced to expand their business. The industry base had made the second application easier and simpler than before. Now transactions are also made very easy and hassle-free.
After registering, the applicant can avail many facilities that the government provides like easy loans, low-interest rate loans, and many more. All the applicants can get the benefits. Moreover, the Government of India also provides money to the applicant and participates in the exhibition that is conducted in other countries. The regulating body also provides many kinds of subsidies for the rich to the registered enterprise. Through these ways, micro, small, and medium traders get motivation and a direction to run their business and join the base industry.
DATA OF REGISTRATIONS ON THE PORTAL
The Government of India provides a great opportunity to all the entrepreneurs to broaden their business and take advantage of the scheme. Many people have now started taking advantage of it. Till 2018, 48 Lac small-medium, and micro-enterprises owners have registered under the Udyog Aadhar portal. This achievement was quite major for the Make In Indian mission. It was a target to achieve that the union ministry of micro small and medium enterprises have achieved the registration of 48 Lac entrepreneurs.
NEW PORTAL FOR MSME REGISTRATION
Prime Minister Narendra Modi launched a new portal for MSME registration. In this COVID-19 pandemic, the portal was launched on 1st July 2020 and has grabbed around 30 Lac registration till now. Analyzing the data today the target is going to reach 31 Lakh on the Udyam Registration Portal. Earlier, the applicants have to fill the form on the Udyog Aadhar Registration Document. But now, the registration portal is active around 38 Lakh registered employees. There were around one Lakh small enterprises and 24,000 mid-sized enterprises last year. In 2020, the Reserve Bank of India said that it is compulsory for all the business to register under the Entrepreneur Memorandum Part 2 by 30th June 2020. They have to file the new registration on the Udyam registration portal.
REGISTRATION UNDER UDYAM AADHAR
Although the central bank did not clear that how many of these registrations in 30 languages questions are new. 30,00,000 registrations are new and how many migrated from Udyam. Indian government said that total number of 30 lakh registration in 10 and-a-half months are there from 2015 to 2020. Around 1,00,00,000 applicants have registered under the MSME registration. Around 22,00,000 people have registered under the EM 2.
Between 2017 to 2015, the annual report of the ministry of micro small and medium industries evaluates this data. Therefore 24% of total Indians have registered on the new portal. Pankaj Kumar is the president of the Indian Industries Association. He said that although many people have not registered in the Udyam Aadhaar memorandum but yes there are many existing MSME registrations who are yet to apply. Lack of awareness is the only reason that entrepreneurs are not registering their businesses or enterprises here. However, this was not a major challenge to bring the registrations.
MAIN ISSUES OF NEW PORTAL
The Reserve Bank of India and government have to be more concerned while bringing the MSME registrations on the new portal. The Udyam registration portal is connected with this GSTN CBDT network. It is registered at the district industries center. According to the provisions, MSME has filed EM part one before starting its production and EM part two after starting its production. According to the national survey, non-agricultural MSMEs are there unincorporated in India. There are 5000 mid-size businesses and around 3 Lakh small enterprises.
The memorandum of ministry of micro small and medium enterprises released a notification in June 2020. The notification states the revised definition of micro small and medium enterprises. It also released a new registration system called the Udyam. Registration on the new portal came into effect from 1st July 2020 and includes the modifications in the definition.
CHANGES IN THE UDYAM AADHAR REGISTRATION PORTAL
Some of the modifications that the definitions include are there is a difference between the manufacturing and service sector. It is not anymore now. They have also added criteria of turnover and revises the investment thresholds upwards. The notification released also says that MSME has introduced a new procedure of registration. On 31st March 2021, the new registration portal was shut down on 26 lacks. Enterprises registered in it results that not more than 5% of total estimated MSMEs have registered in the Indium registration. Till now, the previous registration system called the Udyog Aadhar Registration Document had more registration than the new portal registrations.
WHEN UDYOG AADHAR REGISTRATION DOCUMENT CAME INTO EFFECT?
The Government of India introduced Udyog Aadhar Registration Document in 2015 and it was in operation till June 2020. Within this period of time, the portal observed 1 crore registration which means 16% of cost. The new system called the Udyam system is also free of cost and digitally magnified. The prominent difference between both the portals is that all the important information and data regarding GST excludes from the respective government databases.
LESS NUMBER OF REGISTRATIONS IN UDYAM AADHAR
Now entrepreneurs have to register only once for multiple activities. Those entrepreneurs who have registered their enterprises or businesses into the new system can enjoy the benefits. The benefits are credit-linked capital subsidy scheme. Through this scheme, entrepreneurs can register their complaints related to delete payments on the MSME samadhan portal.
BENEFITS OF UDYAM AADHAR
The Reserve Bank of India released a notification in August that lenders can now demand the new registration portal for credit purposes. RBI connected the portal with the marketplace and trade receivables and discounting system. So, enterprises can participate in the government procedure and have a discount on their bills.
Although, Udyam Aadhar is not receiving great responses and registrations. But the benefits of this new portal will let all the entrepreneurs register here. Almost every entrepreneur knows what is Udyog Aadhar. That platform only would create awareness about the new Udyam Aadhar in future.