What is Udyog Aadhaar memorandum


The idea behind introducing Udyog Aadhaar was to simplify the procedural format that business owners had to go through in order to register their business under Micro Small Medium Enterprise or MSME.

Before the introduction of Udyog Aadhaar, the procedural format for the same was quite hectic and time-consuming bureaucratic process that used to require handling of lots of paperwork. However, with the introduction of Udyog Aadhaar, things have changed and to some extent, have improved for medium, small and micro-enterprises.

If you own a medium, small or micro-enterprise and you haven’t registered your MSME yet, you should know that on registering your MSME via UAM (Udyog Aadhaar Memorandum), you will be liable to enjoy numerous benefits.

What is Udyog Aadhaar Memorandum?

Before the introduction of the UAM system, there used to be a former system of EM-I/II (Entrepreneur Memorandum). Under this system, entrepreneurs used to opt for a heterogeneous system.

The Ministry on September 18, 2015, under the MSME Development Act, 2006 has notified that every MSME unit shall file Udyog Aadhaar Memorandum (UAM). This is a path-breaking step to promote ease-of-doing-business for MSMEs in India as the UAM replaces the filing of Entrepreneurs’ Memorandum (EM part-I & II) with the respective States/UTs. While some of the States/UTs had 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 cumbersome filing of EM has now been dispensed with and the entrepreneurs in the MSME sector just need to file online, a simple one-page UAM on the government website to instantly get a unique Udyog Aadhaar Number (UAN). The information sought is on a self-certification basis and no supporting documents are required at the time of the online filing of UAM.

The UAM can be filed online by individuals themselves in case they have an Aadhaar Number. However, in exceptional cases, including those of not having an Aadhaar Number, the UAM can be filed in offline mode (i.e. on a paper form), with the General Manager (GM) of the concerned District Industries Centre (DIC).

The UAM has emerged from the vision of Honorable 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. A wide-ranging consultation exercise has been done in the matter in the National Board of MSMEs and the Advisory Committee for the MSME Act. It is expected that this simplified one-page memorandum to be filed online shall unlock the potential of MSMEs, besides improving our international ranking in Doing Business Index. Within a short time of three months, more than  100,368 UAMs have been filed in the country.

Here in this article, we have understood what is Udyog Aadhaar Memorandum, it will surely be useful for you to grow your business. If you wish to go for Udyog Aadhaar registration then you should visit the Online Udyog Aadhaar registration portal.

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