How does Udyog Aadhar benefit the small and medium enterprises

Udyog Aadhaar has simplified the procedure and documentation for the MSME registration by making it a one-pager self declared online affair. There are many benefits that the micro, small and the medium enterprises could enjoy by registering themselves under MSME. The article compiles the features and the benefits of having udyog aadhar for your enterprise.

What is Udyog Aadhaar

Udyog Aadhaar is a 12 digit registration number issued by the Ministry of Micro, Small and Medium Enterprises (MSME) to the existing or new small and medium enterprisers in the country who have applied for registration. This initiative of having the one page Udyog Aadhaar Memorandum (UAM) has come into effect on 18th September 2015. It has simplified the erstwhile lengthy procedure of filing for MSME registration where the small and medium enterprisers had to fill Entrepreneur Memorandum –I (EM-I) and Entrepreneur Memorandum –II (EM-II) forms which in turn consisted of almost 11 different forms along with the necessary attested certificates. The introduction of such an online user friendly form has definitely reduced the time taken and efforts made in the entire process of applying and verification of the documents for the MSME registration.


The Ministry of Micro, Small and Medium Enterprises (MSME) supports, promotes and regulates the micro, small and the medium scale enterprises in the country. The ministry provides financial and technical support to the entrepreneurs and also conducts capacity building programs with the objective of enhancing the growth of the enterprises. One cannot deny the fact that the industry has emerged as a booming sector in the Indian economy since the last decade and has been a support to the large industries mostly by provided spares and ancillary services. Hence, further boost up to the industry would result in further enhancement of the large industries and thereby the economy. Currently, the industry contributes nearly 8% to the country's GDP. It ranks second with respect to employment opportunities after agriculture. However, the not good thing about the industry is that it is quite scattered and unorganized.

MSME Registration

The micro, small and medium enterprises need to be registered under MSME for enjoying the benefits provided under various Govt. schemes to the industry. Though not a compulsion, it is always advisable for the newly established enterprises to get themselves registered under the ministry. The registered enterprises are eligible for certain benefits that let them go a step forward towards making them successful commercially.
The Udyog Aadhaar helps the small entrepreneurs in getting themselves registered under MSME in a simpler way by just filling a one page form and giving certain enterprise related details.

The salient features of Udyog Aadhaar

  • Registration is online instead of personal filling. It is just a click job.
  • UAM can be filed by self-declaration on the details of the enterprise.
  • The details required for filing for registration: Personal Aadhaar number, Industry name, Address, Bank details, and some common information.
  • One can file more than one Udyog Aadhaar with same Aadhaar Number.
  • No Fee for filing.
  • Once filled and uploaded, the registration number is received in the mail-id provided.

The benefits of Udyog Aadhaar registration

  1. Once registered with MSME, the micro, small or the medium enterprise would be eligible for all government scheme benefits like without guarantee loan, easy loan, loan with low rate of interest.
  2. The MSME registered enterprises get the financial support from the Government to participate in foreign expo.
  3. The enterprise is also entitled for the Government subsidies.

With more than two lakh registered enterprises under MSME, the industry promises to move towards becoming an organized one with maximum benefits enjoyed by the entrepreneurs.
More information can be availed in

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Author: Kailash Kumar23 Feb 2016 Member Level: Platinum   Points : 4

Udyog Aadhar registration primarily relies on the already completed Aadhar registration after due verification etc. as only after validation of Aadhar button for verification, the form can be filled further. Thus it can be said to be a supplement to the main Aadhar registration with additional particulars related to the industry/services concerned. Also data relevant from the point of view of availing benefits under various Government schemes e.g. social category or bank details with IFSC is compiled in Udyog Aadhar registration. It is however very important to fill only accurate information in the system as the original documents are likely to be verified later at the time of actual award of benefits, if any and if applicable.

Guest Author: Sujit03 Nov 2016

Not received my udhyog aadhar card

Guest Author: vyas27 Dec 2016

Banks are not allowed to open the account with this proof. Which bank is allowed to open the current account based on Aadhar registration?

Guest Author: Sasikumar03 Mar 2017

Sir I have received my UAN number for Educational centre. How to apply further for benefits?

Guest Author: himanshu16 Mar 2017

I had applied for the UAN for my educational institute purpose, can i open a Current account from this UAN

Guest Author: venkataraman.g.04 Apr 2017

I would like to start export business and to get IEC number a current account is essential. When I approached bank, they asked for TIN number. I got the TIN through UDYOG AADHAR so will the bank accept it or else how to get TIN and how much will be incurred? Please clarify this for me.

Guest Author: Ashutosh Mishra06 Dec 2017

Will UAN be sufficient to do any type of Online sales ?

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