The Udyog Aadhaar Memorandum(UAM) is a given with old Udyog Aadhar Certificate which is now known as Udyam Registration. A Process that officially recognised Micro, Small, and Medium Enterprises (MSMEs). This process is conducted online and allows businesses to register themselves on legal and government platforms. Through UAM, you receive a unique registration number, which is essential for identifying your business and availing government schemes.
The purpose of UAM is not limited to registration alone; it also helps in providing financial, technical, and managerial support to small businesses. Through this, the company can easily apply for loans, subsidies, and government schemes.
Important information included in the Udyog Aadhaar Memorandum
For UAM registration, you need to provide some basic information about your business. This information includes:
- Entrepreneur’s personal details: Name, date of birth, and Aadhaar number.
- Basic Business Information: Business name, type, and main industry (Manufacturing, services, or Trading).
- Business address and contact details: Registered office address and phone number.
- Financial details: Business’s annual turnover and estimated investment.
- NIC Code selection: It is essential to select the correct NIC code for your industry’s primary activity.
Benefits of Old Udyog Aadhaar Memorandum (UAM)
- Access to government schemes: Businesses registered with UAM can avail themselves of government schemes and subsidies.
- Easier access to bank loans and finance: Businesses find it easier to obtain loans from banks.
- Legal Recognition: This registration provides your business with an official and legally recognised identity.
- Business growth: through UAM registration, you can run your business in a professional and or organised manner
- Ease of documents: A standardised document is available for financial and government documentation.
Key Feature of Old UAM
The introduction of UAM brought about several major changes in the world of MSME Registration:
- Self-Declaration: There was no need to update any documents or proof. The information provided by the business owner was considered final.
- Paperless and free: This registration was completely digital, and no government fees were charged.
- Multiple Registration: A single individual could register more than one
- Business entity using the same Aadhaar card.
- Instant Certificate: the Udyaog Aadhaar Acknowledgement and Certificate were issued instantly upon submission of the registration.
Information Required for Registration
To fill out the UAM (Udyog Adhaar Memorandum) now Udyam Regisatration, the business owner needed the following basic details:
- Aadhaar Number: The Aadhaar number of the proprietor, partner, or director.
- Enterprise Name: The name of the business.
- Type of Organisation: Whether it is a proprietor, a partnership, or a company.
- Bank Details: Bank account number and IFSC code.
- NIC code: The category of the business falls under(manufacturing or service).
- Investment Details: The amount of money invested in plant and machinery.
A big change: from UAM to “Udyam Registration”
From July 1, 2020, the government of India changed the definition of MSMEs and upgraded UAM to ‘Udyam Registration’
What has changed?
- Now, registration is linked not only to Aadhaar but also to PAN and GST.
- Along with investment, turnover is now also used as a basis for classification.
- Data is now automatically fetched from the income tax and GST portals, which has reduced fraud.
If you have an old UAM registration, it is no longer valid. You are required to migrate from Udyog to Udyam portal. Otherwise, you will not be able to avail yourself of the government schemes.
