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Udyog Aadhar UDYOG AADHAAR Government of India Ministry of Micro, Small and Medium Enterprises (An ISO 9001:2008 Certified Organisation) UDYOG AADHAAR Government of India Ministry of Micro, Small and Medium Enterprises (An ISO 9001:2008 Certified Organisation) KALRAJ MISHRA Minister of Micro, Small & Medium Enterprises GIRIRAJ SINGH Government of India New Delhi Minister of State for Micro, Small & Medium Enterprises Government of India New Delhi UDYOG AADHAAR Government of India Ministry of Micro, Small and Medium Enterprises (An ISO 9001:2008 Certified Organisation) EASE OF DOING BUSINESS “Lot of suggestion are received by me, some of them are very interesting. Some people have suggested that the process of registration for small scale industries should be simple. I will bring it to the notice of the government.” - Narendra Modi, Hon’ble Prime Minister (Prime Minister’s ‘Man Ki Baat’) Report of the Kamath Committee on Financial Architecture of MSME sector, Chapter 8 (Para 2) : Universalization of Registration ‘The proposed National MSME Portal can then require only a simple one-page registration form for MSMEs with a simplified set of information and documents. With the growing penetration of mobile phones in the country and the incremental usage of data services on mobile devices, this portal should also be Shri Narendra Modi easily accessible through mobile platforms’. Hon’ble Prime Minister of India Ministry of Micro, Small and Medium Enterprises Government of India Launches UDYOG AADHAAR Salient Features Ø NO FEES FOR UDYOG AADHAAR Ø REGISTER ONLINE - SINGLE PAGE REGISTRATION Ø NO DOCUMENTATION REQUIRED Ø FILE MORE THAN ONE UDYOG AADHAAR Ø SELF DECLARATION Visit - http://udyogaahaar.gov.in Nþºç\ uªÈ Ìîߪ ÂVì Eç{º ª†®ª Gùª ªæÞy KALRAJ MISHRA §çºo ̺Nþçº ŒF| utÁÂy - 110011 Minister of Micro, Small & Medium Enterprises Government Of India New Delhi-110011 MESSAGE The Ministry of Micro, Small & Medium Enterprises has notified the guidelines for online filing of Udyog Aadhaar Memorandum (UAM), in exercise of the powers conferred by sub-Section (2) of the Section 8 of the Micro, Small and Medium Enterprises Development Act, 2006. This initiative of my Ministry is a path breaking step to promote ease-of-doing-business for MSMEs in India as the UAM now replaces the need for filing Entrepreneurs Memorandum (EM Part-I & II). The existing mechanism for filing EM by a Micro, Small and Medium Enterprise is put in place by respective States and Union Territories (UT). While some of the States/UTs have made the process online, either by themselves or through the Portal created by this Ministry, several States/ UTs were still relying on the manual way of filing EM. The introduction of filing a single UAM online by enterprises located anywhere in India would end these existing variations in filing of EM. The UAM has emerged from the vision of Hon’ble Prime Minister of India shared with the Nation through “Mann Ki Baat” telecast on 03-10-2014 and the recommendations for Universalization of Registration in the Report of the Kamath Committee on Financial Architecture of MSME sector. Wide-ranging consultation exercise has been done in the matter in the National Board of MSMEs and the Advisory Committee for MSME Act. It is expected that this simplified one-page Memorandum to tbe filed online shall unlock the potential of MSMEs, besides improving our international ranking in Doing Business Index. (KALRAJ MISHRA) uTuººç\ uÌæÒ ºç[® ªæÞy GIRIRAJ SINGH Ìîߪ ÂVì Eç{º ª†®ª Gùª §çºo ̺Nþçº ŒF| utÁÂy - 110011 Minister of State Micro, Small & Medium Enterprises Government Of India New Delhi-110011 MESSAGE I am happy to know that Ministry of Micro, Small & Medium Enterprises has notified the guidelines for online filing of Udyog Aadhaar Memorandum (UAM) under the Micro, Small and Medium Enterprises Development Act, 2006. It is expected that this will bring about a positive change for enterprises in the MSME Sector and also motivate the enterprises in the unorganized sector to get for them an Udyog Aadhaar Number. I hope and trust that governments in the States and Union Territories (UT) would welcome this positive change and will do all that is necessary to encourage all enterprises in MSME sector to file the UAM. (GIRIRAJ SINGH) §çºo ̺Nþçº EŒîœ Nzþ. œì\çºy Ìîߪ,ÂVì Eç{º ª†®ª Gùª ªæÞç® L LÂ. ¤y. (utÁÂy), œy LY.gy. (¤çzËbŒ), EçF| L LÌ GùçzT §ÄŒ, ŒF| utÁÂy - 110011 ÌuYÄ Anup K. Pujari Government of India Ministry of Micro, Small and LL.B. (Delhi), Ph.D. (Boston), IAS Secretary Medium Enterprises Udyog Bhawan, New Delhi-110011 Tel. : 23063283 MESSAGE Micro Small and Medium Enterprises (MSME) sector has emerged as a very vibrant and dynamic sector of the Indian economy. The Micro, Small and Medium Enterprises Development Act (MSMED Act) was notified in 2006. Before 2006, small scale registration certificate used to be issued by respective District Industries Centres (DICs). After 2006 this was changed to Enterpreneurs Memorandum (EM-I) for such enterprises that are yet to commence operation and EM-II for enterprises having commenced operations. The 2006 Act also widened that definition of entities from “industries” to “enterprises” to take into account service sector also. Scuh Memoranda were to be filed with the respective DICs. Some States/ UTs, subsequently, computerized the process of filing of EM, while rest continued with physical filing. In 2014 Ministry of MSME launched the EM Portal (http://em.msme.gov.in) in consultation with States / UTs. This IT platform has since been adopted by 14 States/UTs for EM filing. Over 67000 (EM-I) & 18500 (EM-II) have been filed in less than a year. To further simplify the registration process, the Ministry of MSME, after consulting all the stakeholders, has notified the Udyog Aadhaar Memorandum (UAM) on 18th September 2015. UAM requires only Aadhaar Number of the applicant / authorized person filing the application. UAM provides instant registration making the process easy, paperless. There is no fee for filing UAM. We hope that this simplified process would be useful to by MSMEs and would be worthy of their appreciation. (ANUP K. PUJARI) Content 1. BACKGROUND 1 2. OVERVIEW OF THE SSI/MSME SECTOR 2 3. Entrepreneurs Memorandum (EM-I &II) 4 4. Universalization of Registration 5 5. Udyog Aadhaar Memorandum 6 6. Benefits of filing Udyog Aadhaar Memorandum 6 7. Guidelines for Filing the Online Udyog Aadhaar Form 7 8. Highlights 9 9. Frequently Asked Questions and Answers 14 10. Udyog Aadhaar (Sept 18 to October 18,2015) 18 11. Enterprises with EM2 (2006-2015) Sept 2015 19 12. Small Scale Industries (Upto 2006) 20 13. Notification SO E 2576 E dated 18th September 2015 21 Shri Kalraj Mishra, Hon’ble Minister for Micro, Small and Medium Enterprises address a press conference on “Udyog Aadhaar Memorandum” a simplified registration format for MSMEs, in New Delhi on October 06, 2015. The Secretary, Ministry of Micro, Small & Medium Enterprises and Steel, Dr. Anup K. Pujari and the Director General (M&C), Press Information Bureau, Shri A.P. Frank Noronha are also seen. 1. BACKGROUND Micro Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country. The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector. The Act seeks to facilitate the development of these enterprises as also enhance their competitiveness. It provides the first-ever legal framework for recognition of the concept of “enterprise” which comprises both manufacturing and service entities. It defines medium enterprises for the first time and seeks to integrate the three tiers of these enterprises, namely, micro, small and medium. The primary responsibility of promotion and development of MSMEs is of the State Governments. However, the Government of India, supplements efforts of the State Governments through various initiatives. The role of the M/o MSME and its organizations is to assist the States in their efforts to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario. UDYOG AADHAAR 1 2. OVERVIEW OF THE SSI/MSME SECTOR 2.1 Prior to implementation of MSMED Act, 2006, the sector was defined, as per the provision of Industrial Development and Regulation (IDR) Act 1951, as Small Scale Industries (SSI) sector and its constituent tiny and auxiliary units as per periodic revision of criteria for defining such units. The scope and coverage of the MSME s e c t o r w e r e b r o a d e n e d significantly under the MSMED Act, 2006, which recognized the concept of “enterprise” and to include both manufacturing and services sectors, besides defining the medium enterprises under MSME Sector. Thus, the entire non-agricultural sector of economy was brought under the coverage of MSME Sector subject to the revised criteria prescribed for defining Micro, Small and Medium Enterprises separately for manufacturing and services sectors. 2.2 In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes: (a) Manufacturing Enterprises - The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use.
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