SSI Online Registration is a service offered by the government of India for small scale industries (SSI) to register themselves with the government so that they can avail certain monetary benefits and concessions offered by the Government of India through concessions in fees and stamp duties etc. and other schemes.
These SSIs also has to register themselves through SSI online registration portal to get the SSI registration certificate before applying for GST registration; as GST registration requires the proof of status of SSI of any enterprises.
Udyog Aadhar memorandum is the application through which SSI online registration is done and after registration, Udyog Aadhar allots a unique Udyog Aadhar number to every registered small scale industries through Udyog Aadhaar certificate.
It is a 12-digit unique identification number by the ministry of MSME to your business. It was formed as per the recommendations made by Kamath Committee, the Ministry of MSME, in consultation with the National Board of MSMEs.
The Advisory Committee in this behalf prepared a one-page registration form which is known as Udyog Aadhar Memorandum, for Udyog Aadhar registration in India that would constitute a self- declaration format under which the MSME will self-certify its existence, bank account details, owner’s Aadhaar details and other minimum basic information required. Based on the same, the MSMEs are issued an online, a unique identifier i.e. the Udyog Aadhaar Number.
The Ministry of MSME has set up the infrastructure i.e. the SSI Online Registration Portal for online SSI registration in India through Udyog Aadhaar Memorandum (UAM) by enterprises located anywhere in the country. The SSI online registration portal is also accessible on mobile devices.
The SSI registration process is very simple and can be done in a matter of a few minutes. The main aim of Udyog Aadhar Memorandum is to make the SSI Online registration process easier for MSMEs which is one of the largest employment generators in India right now. It also allows people to access government schemes and benefits easily and also encourages people to become self-employed.
MSME (Micro Small Medium Enterprise)
MSME (Micro, Small and Medium Enterprises) has been developing tremendously in India. They are as important big large-scale industries for the economy for the country. They involve small businesses and trade, start-ups etc. They not only play a vital role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in the 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.
MSMEs include Small Scale Industries (SSI) and therefore, SSI Online Registration services are offered by the government similar to the MSME registration services. Both are synonyms to each other as both means the same thing. It’s better not to confuse them.
Before implementation of Micro, Small & Medium Enterprises Development (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.
Then came the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 which broaden the scope and coverage of the MSME sector. The Micro, Small and Medium Enterprises Development (MSMED) Act 2006 addresses policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector. This Act seeks to facilitate the development of these enterprises as also enhance their competitiveness. It recognized the concept of “enterprise” and included both the manufacturing and services sectors in it. It also defined the medium enterprises under MSME Sector. It also defines medium enterprises for the first time and seeks to integrate the three tiers of these enterprises, namely, micro, small and medium.
Therefore, the entire non-agricultural sector of the economy was brought under the coverage of MSME Sector subject to the revised criteria prescribed for defining Micro, Small and Medium Enterprises separately for the manufacturing and services sectors.
Ministry of Micro Small and Medium Enterprises envisages a vibrant MSME sector by promoting growth and development of the MSME Sector, including handloom, village, cottage and coir Industries, in cooperation with concerned Ministries, State and UT Governments and other Stakeholders, through providing support to existing enterprises and encouraging the creation of new enterprises.
Categorisation of MSMEs
According to the provisions of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are categorised 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. The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.
(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
Then these enterprises are categorised into three tiers in accordance with capital invested in them. The limit for investment in plant and machinery/equipment for manufacturing/service enterprises are as under:
|Enterprises||UAM Category||Type||Investment in plant & machinery/equipment|
|Micro Enterprises||A||Manufacturing||Does not exceed 25 lakh rupees|
|D||Service||Does not exceed 10 lakh rupees|
|Small Enterprises||B||Manufacturing||More than 25 lakh rupees but does not exceed 5 crore rupees|
|E||Service||More than 10 lakh rupees but does not exceed 2 crore rupees|
|Medium Enterprises||C||Manufacturing||More than 5 crore rupees but does not exceed 10 crore rupees|
|F||Service||More than 2 crore rupees but does not exceed 5 crore rupees|
Udyog Aadhar Registration in India
The method of Udyog Aadhar registration in India is pretty simple. Udyog Aadhar registration in India can be done through the official online website which is SSI Online Registration Portal. To avoid any confusion, SSI Online registration and Udyog Aadhar registration is one and the same. The new name Udyog Aadhar is coined by the new government in power. The govt has made it very simple and it takes only a few minutes to get it done. Everybody running an enterprise which comes under the category of MSMEs should definitely do the SSI Online registration. It gives a unique identity to your enterprise. The system today is kind of revitalized for Udyog Aadhar registration in India, and it seeks comparatively less information than the EMI/II process as well. You also need comparatively very fewer documents to get your enterprise registered.
The process of SSI Online Registration in India
- First, open the official Udyog Aadhar Registration in India website which is SSI Online Registration Portal. Then enter your 12-digit Aadhaar number issued in your name in the appropriate field.
- Then enter the name of the owner in the appropriate place. You should fill your name strictly as mentioned on the Aadhaar Card issued by UIDAI.
E.g. if Amit Kumar Mishra has his name as Amit K. Mishra, the same should accordingly be entered if the name does not match with the Aadhar Number, you will not be able to fill the form further.
- To validate the Aadhar Number you must click on Validate Aadhaar button for verification of Aadhaar after that only user can fill the form further.
- You can click on reset button to clear the field of Aadhaar No and Name of the owner for different Aadhaar.
- The Social Category- You may select the Social Category (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC). The proof of belonging to SC, ST or OBC may be asked by appropriate authority, if and when required.
- Name of Enterprise- You must fill the name by which your Enterprise is known to the customers/public and is a legal entity to conduct business. One applicant can have more than one enterprise doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number as Enterprise 1 and Enterprise 2 etc. while doing SSI online registration.
- Type of Organization- Then, select from the given list, the appropriate type of the organization for your enterprise. Before that, confirm that the enterprise is authorized by the legal entity (i.e. enterprise being registered for Udyog Aadhaar) to fill this SSI online application form. Only one Udyog Aadhaar number shall be issued for each enterprise.
- Postal Address- Then fill in the appropriate field the complete postal address of the Enterprise including State, District, Pin code, Mobile No and Email.
- Date of Commencement- The date in the past on which the business entity commenced its operations may be filled in the appropriate field.
- Previous Registration Details (if any)- If the enterprise, for which the Udyog Aadhaar is being applied under SSI online registration, is already issued a valid EM-I/ II by the concerned GM (DIC) as per the MSMED Act 2006 or the SSI registration prevailing prior to the said Act, such number may be mentioned in the appropriate place.
- Bank Details- Then, You must provide your bank account number used for running the Enterprise in the appropriate place. The Applicant must also provide the IFS Code of the bank’s branch where his/her mentioned account exists. The IFS code is nowadays printed on the Cheque Books issued by the bank. Alternatively, if you know the name of the Bank and the branch where his/her account is there, the IFSC code can be found from the website of the respective Bank.
- Major Activity- The major activity i.e. either “Manufacturing” or “Service” may be chosen by the enterprise for Udyog Aadhaar at the time of SSI Online Registration.
- NIC Code- Then choose as appropriate National Industrial Classification-2008 (NIC) Code for the selected “Major Activity”. The NIC codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program Implementation, Government of India.
- A person employed- The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field.
- Investment in Plant & Machinery / Equipment- While computing the total investment, the original investment (purchase value of items) is to be taken into account excluding the cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI. If an enterprise started with a set of plant and machinery purchased in 2008 worth Rs. 70.00 lakh has procured additional plant and machinery in the year 2013 worth Rs. 65.00 lakh, then the total investment in Plant & Machinery may be treated as Rs. 135.00 lakh.
- DIC- Then based on the location of the Enterprise, you have to fill in the location of DIC. This Column will be active and show option only when there is more than one DIC in the district. In fact, if there is only one DIC in the district system will automatically register you in the same DIC.
- Submit- Then click on the Submit button to generate acknowledgement number. This is the final step in the SSI online registration process.
Your acknowledgement number will be generated along with a soft copy of the certificate. Please save the soft copy of the certificate. Hence, Your Udyog Aadhar Registration in India is complete.
Another important point is that if your enterprise grows and its turnover crosses the tier as specified in MSMEs then you have to de-register from Udyog Aadhar.
Major Reasons for SSI Online Registration in India (7 Reasons)
- SSI online registration in India will enable the small scale enterprises to seek information and apply online about various services being offered by all Ministries and Departments.
- Earlier enterprises were insisted to file EM-II which is very cumbersome to file, the simplified Udyog Aadhaar will enable all enterprises to file and register themselves through SSI online registration, so that, simply by using Udyog Aadhaar Number, they can access other services.
- The process of obtaining Udyog Aadhaar Registration in India is free-of-cost, paperless and results in instant SSI online registration.
- Having Aadhaar Number is not mandatory for MSME registration India under Udyog Aadhaar. The SSI Online Registration can be done online by individuals themselves only in case they have an Aadhaar number. However, in all exceptional cases, including those of not having Aadhaar number, can still file Udyog Aadhaar Memorandum, in offline mode (i.e. on the paper form), with the General Manager (GM) of the concerned District Industries Centre (DIC).
- The persons having Aadhaar numbers, by virtue of having provided the demographic as well as biometric details to the state, once and for all, indeed enjoy greater ease of registration at the SSI Online Registartion portal.
- The process of SSI online registration in India is very easy. As a result, within a short span of time, more than 38,000 registrations have taken place on the UAM portal owing to the simplified process of registration of MSME units.
- Single System of Registration for MSMEs- Udyog Aadhaar Memorandum. When the EM-II was filled with the GM (DIC), heterogeneous systems were in vogue. Some States had their own online systems for registering MSMEs, some were using the national portal created by Ministry of MSME and some (around 10 states) were continuing with the manual (paper form) system of filing EM-II. The new system of Udyog Aadhaar offers a convergence of all heterogeneous systems to a single system of registration.
- The SSI online registration in India portal has suitable provisions for sharing State/ District specific data of registrations under Udyog Aadhaar with the respective States/ Districts. This initiative of maintaining the data on MSMEs with the Ministry of MSME is likely to save cost in the long run since States/UTs would no longer be requiring maintaining the same.
Benefits of SSI Online Registration/Udyog Aadhar Registration in India & getting a Udyog Aadhar Number
1. Once the enterprise receives SSI online registration in India, it would eligible for all government scheme benefits like without guarantee loan, easy loan, the loan with a low rate of interest.
2. The MSME registration also enables the MSMEs to be eligible for collateral-free loans up to Rs. 1 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE Scheme). This is a collateral free loan and the Central Government takes guarantee of the borrower.
3. To improve the timely funds’ availability to the MSME Sector, the Government of India has classified loans to Micro and Small Enterprises under priority sector lending.
4. The banks are required to have 20% year on year growth in lending to Micro and Small Enterprises.
5. The MSME registered enterprises get the financial support from the Government to participate in the foreign expo.
6. The enterprise is also entitled to the Government subsidies under the Central Government and State Governments different schemes and subsidies for the MSME sector released from time to time.
7. The Government of India, by the way of Public Procurement Policy, 2012 provides that all Central Government Ministries, Departments, and Public Sector Undertakings shall give Preference to Micro and Small Enterprises in Government tenders and should procure the minimum of 20 percent of their total annual value of goods or services from Micro and Small Enterprises.
8. Micro and Small enterprises also enjoy Other Subsidies from State Governments such as extended credit facilities, Industrial extension support, and services, Assistance in marketing, Assistance for construction of industries in underdeveloped areas, Technical consultancy, assistance in the capital, Excise exemption and Exemption under direct tax laws etc.
9. MSMEs are given a 50% reduction in fee for filing patents and trademarks.
10. Protection from delayed payments is also provided by the Government.
11. MSMEs get concession in electricity bills as well.
Documents and Information required for SSI Online Registration in India
The following information and documents are required for Udyog Aadhar Registration in India: –
- Aadhar Number of the Owner of the enterprise.
- Name of the Owner as written in Aadhar.
- Name of the Enterprise.
- Postal Address of the Enterprise.
- Social Category certificate (if any – not required during registration but can be asked by the authority anytime.
- Date of commencement of the enterprise.
- Details of previous registration details if any exists under EM-II.
- IFS Code of the bank’s branch where the enterprise’s bank account exists.
- The total number of people employed in the enterprise.
FAQ’s related to SSI Online Registration in India
Has EM-I/II been replaced by UAM ?
Yes. After the notification dated 18-09-2015, the filing of EM-I/II by States/ UTs is discouraged and instead all efforts are made by the govt to popularize the filing of UAM on the SSI online registration portal created by Ministry of MSME.
What is the date for adopting the UAM and stopping EM-I and EM-II ?
The UAM has been notified by notification dated 18-09-15. However, in order to maintain continuity, the cases of EM-I/II filing under process till 18-09-2015 was accepted.
Whether the multiple systems of registration may exist after the introduction of SSI Online Registration portal or UAM ?
All other online/ offline systems of registration of MSMEs created and maintained by Central/State/UT Governments should cease to register new MSMEs forthwith. Such online platforms may be allowed to exist for the time being to enable access to useful legacy data for decision making. Henceforth, there should be only one system i.e. UAM for the registration of new MSME units.
How to select the NIC Code of the Activity performed by the enterprise ?
NIC code can be selected once the Aadhaar number is validated and major activity (manufacturing or service) is selected. In order to simplify the selection of appropriate NIC code, a three-stage drop-down list is available to the users.
Is there a provision to verify the UAM credentials by the procurement agencies including government departments and PSUs ?
NIC has been advised to suitably provide this provision in a way that several e-procurement portals in the country, created by the government or private but being used by the government could benefit from the SSI Online Registration portal in so far as online verification of an MSME unit is concerned.
Is there a difference in the information sought under EM-I/II and the new Udyog Aadhar Memorandum (UAM) ?
In order to promote ease of doing business for MSMEs, it has been decided to seek lesser information than EM-I/II in the UAM or SSI Online Registration portal.
How to submit the supporting documents while filing SSI Online Registration form ?
The information sought is on a self-certification basis and no supporting documents are required at the time of online filing of memorandum or SSI registration in India.
What would happen to those enterprises which do not have Aadhaar Number ?
At present Aadhaar Number is mandatory for SSI online registration under UAM. However, those who don’t have Aadhaar Number can apply offline.
Is there a provision for editing of information in UAM data of an enterprise by GM (DIC) ?
No. However, GM DICs, on the UAM portal, shall be able to enter their remarks on the respective information provided by the entrepreneurs while filing the SSI online registration form.
Who has access to the data from the UAM portal ?
The UAM Portal shall have suitable provisions to allow officials of the State Governments including GM DICs to have password protected access to data of their jurisdiction.
Whether the new system of SSI online registration provides NIC Code in Hindi and English ?
No, Presently the NIC Codes are only available in English.
If you want to get your enterprise’s SSI online registration in India then Companyvakil is the one-stop solution for you. For more detail visit Udyog Aadhar page on our Companyvakil website. You can get more details in our other blogs on Udyog Aadhar Registration in India.