Udyog Aadhaar or MSME registration is a certificate provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Udyog Aadhaar used to be referred to as MSME registration earlier. Now, the process for obtaining MSME registration has been merged with Udyog Aadhaar registration and made online by the Government. The main objectives of the MSME department with respect to providing Udyog Aadhaar registration are as follows:
Not all businesses can obtain Udyog Aadhaar registration. Only those entity that are classified as a micro, small or medium enterprise as per the table below based on investment in plant and machinery is eligible for Udyog Aadhaar.
Classification | Manufacturing Sector | Service Sector |
Micro Enterprise | Upto Rs. 25 lakhs investment in plant & machinery | Upto Rs. 10 lakhs investment in equipment |
Small Enterprise | Upto Rs.5 crore investment in plant & machinery | Upto Rs.2 crores investment in equipment |
Medium Enterprise | Upto Rs.10 crore investment in plant & machinery | Upto Rs.5 crores investment in equipment |
Udyog Aadhaar registration is provided free of cost by the Government and its simple and easy to obtain online. After obtaining Udyog Aadhaar, a business can enjoy the following benefits:
The applicants personal Aadhaar is the main requirement for obtaining Udyog Aadhaar in case of a proprietorship. No further documents are required other than an email and a mobile number.
If an applicant or authorised signatory of a business does not have Aadhaar, then he/she must first apply for Aadhaar at an Aadhaar enrolment centre. Once, the Aadhaar is obtained, the Udyog Aadhaar process can be started.