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. MSMED Act (2006) provided for enterprises to register with DIC and file Entrepreneurs Memorandum (EM)1 & EM2. However, the process was difficult and need for hassle free eco-system of registration that may lead towards formalization of economy. Hence, through the Gazette Notification dated 18.9.2015, the Government replaced the filling of EM-1 & EM-2 with DIC with filing of single page self-declaration Udyog Aadhaar Memorandum (UAM).
What is Udhyog Aadhar Memorandum (UAM) ?
The Udhyog Aadhar Memorandum was proposed by Kamath Committee as step towards universalisation of Registration. The Report of the Kamath Committee on Financial Architecture of MSME sector ; Chapter 8 (Para 2) : Universalisation 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 easily accessible through mobile platforms’.
Salient Features of Udhyog Aadhar:
- Udyog Aadhaar Memorandum (UAM) is filed online at http://udyogaadhaar.gov.in.
- Udyog Aadhaar is investor friendly and there is no fee charges for registration.
- Udyog Aadhaar is for Running units. No need to apply for upcoming units.
- The one page Udyog Aadhaar Form constitute a self-declaration format under which the MSME will self-certify its existence, Bank Accounts details, promoter/owners Aadhaar details and other minimum basic information required.
- In the Udyog Aadhaar Memorandum, the Aadhaar Number shall be of the managing partner, in case of proprietary enterprise, of the authorized partner, in case of partnership enterprise, and of the authorised person, in case of other forms of enterprises.
- There shall be no restriction on filing more than one Udyog Aadhaar Memorandum using the same Aadhaar.
In exceptional cases where online filing is not possible for any reasons, a hard copy of the form as in Annexure 1, duly filled in may be submitted to the concerned District Industry Center (DIC) which shall file the Udyog Aadhaar Memorandum online.
Udyog Aadhar Memorandum in Rajasthan
- Udhyog Aadhar Memorandum Acknowledgement Act, 2015 has been implemented in Rajasthan State and online registration has been started, since 18 September, 2015.
- During the financial year 2018-19, 1,04584 industrial units have been registered online on UAM portal.
- These units have generated opportunity of direct employment for 4,65,445 persons.