What is an MSME Delhi (Micro Small Medium Enterprise) ?

The Micro Small and Medium Enterprises (or simply MSME) are small entities that are classified on the basis of their investment. It is a comparatively new sector of the economy that is gained a lot of importance over the course of the last few decades. It has gained so much importance that the government of India enacted the Micro Small and Medium Enterprises Development Act in 2006 to address the policy issues which affect the Micro Small and Medium Enterprises. MSME Delhi simply means small industries which comes under the definition of micro, small or medium within the confines of Delhi. Every such industry is required to get registered within the state in which the industry is situated in order to  avail benefits associated with MSME Delhi scheme.

What is Udyog Aadhar Delhi?

Udyog Aadhar Delhi is a 12 – digit number. It is also commonly called the Aadhar for Business. It is a unique identification number that is provided by the Ministry of Micro Small and medium enterprises, Govt. of India in Delhi so that the enterprise can recognise itself as an MSME Delhi.

The Micro Small and Medium Enterprises Development Act was implemented in 2006. Prior to this act, the MSME Delhi sector was all considered small scale industries under the Industrial Development and Regulation Act of 1951, Govt. of India.  

In simple terms, the Udyog Aadhar Registration Delhi is simply just another registration that has been launched by the government to certify small/ medium business and enterprises situated in Delhi.

The Micro Small and Medium Enterprises sector has emerged as new dynamic sector of the Indian economy over the last few decades. These Micro Small and Medium Enterprises (MSME Delhi) help in the industrialisation of the economically backward areas by generating employment. The employment opportunities in turn lead to development of these areas, this in turn helps in assuring a more equitable distribution of the national income by reducing regional imbalances.

The primary responsibility of the development and promotion of these enterprises is in the hands of the respective state governments such as Delhi govt. has the responsibility to promote MSME Delhi. The centre has also played a major role in the empowerment of this sector. First through the enactment of the Micro Small and Medium Enterprises Development Act in 2006 to address the policy issues which affect the Micro Small and Medium Enterprises and second through the Ministry of MSME, Govt. of India.

The MSME Delhi as per the Micro Small and Medium Enterprises Development Act classifies the enterprises into 2 categories – manufacturing sector and the service sector. Further these are then split into the micro, small and medium enterprises. The following table shows the limits for falling in each of the said categories. It also makes reference to the statutory provision for the same.

 

Manufacturing Sector
Enterprises under MSME Delhi Investment in plant and machinery Relevant Section of the 2006 Act
Micro Enterprises Does not exceed twenty five lakh rupees s. 7(a)(i)
Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees s. 7(a)(ii)
Medium Enterprises More than five crore rupees but does not exceed ten crore rupees s. 7(a)(iii)
Service Sector
Enterprises under MSME Delhi Investment in equipments Relevant Section of the 2006 Act
Micro Enterprises Does not exceed ten lakh rupees: s. 7(b)(i)
Small Enterprises More than ten lakh rupees but does not exceed two crore rupees s. 7(b)(ii)
Medium Enterprises More than two crore rupees but does not exceed five crore rupees s. 7(b)(iii)

 

What are Small Scale Industries in Delhi (SSI Delhi) ?

Small scale industries have been defined under section 3 (j) of the old Industries Development and Regulation Act of 1951 and various other reports and commissions. Except for the fact that the limit of investment (the investment bracket) for the classification of industries differs under different Acts and countries the idea of a small scale industry remains the same. They are essentially small industries with only limited capital and investment. SSI Delhi includes all such small scale industries situated in Delhi within its ambit.  Further these small scale industries (SSI Delhi) are usually more labour intensive as compared to capital intensive. These industries are suited for places where there is an abundance of labour. Delhi has an abundance of labour both literate and illiterate. It is for this reason that small scale industries or SSI Delhi have become an indispensable part of the country’s economy.

It should be understood that the MSME Delhi includes all small scale industries (SSI Delhi) within its ambit. Here, MSME Delhi is the umbrella term for all such types of small scale industries. These industries (SSI Delhi) are often opened up in the backward areas so as to generate employment and consequently ensure the overall development of the state and the country as a whole.

There are 2 broad types of industries under MSME Delhi – small scale and large scale industries.

    1. The small scale industries use lesser resources and capital as compared to the large scale ones.
    2. The large scale industries are often more modernised in terms of the mode of production.
    3. The small scale industries are usually located in the rural and backward areas of Delhi while the large scale ones are usually located in the more developed areas of Delhi. (for want of other resources and raw materials such as electricity)
    4. Finally, the large scale industries often have a better management and organisational structure than the small scale ones.

 

MSME Delhi Registration – A Brief 

MSME Delhi registration or Udyog Aadhaar registration both are interchangeable words and serves the same purpose. MSME Delhi or Udyog Aadhar registration is essentially the registering of Micro Small and Medium Enterprises with the government. It is a very simple process. It can be done online and offline. The MSME Delhi registration by itself has a lot of benefits for the enterprise and on top of this it is free of cost.

On registration, the enterprise is given an Udyog Aadhar Number (a 12 – digit number). It is also commonly called the Aadhar for Business. It is a unique identification number that is provided by the MSME Delhi; so that, the enterprise can recognise itself as an MSME Delhi.

The purpose of this scheme was to make the registration process simpler and provide benefits to the enterprises falling under this scheme. The scheme targets the Small Scale Industries of the country including SSI Delhi. The Udyog Aadhar registration is very useful. It entitles the enterprise to government subsidies. It allows for easier registration under any other government schemes by virtue of the Udyog Aadhar number. A registered enterprise can avail loans without collateral and loans at a lower rate of interest.

Process of MSME Delhi Registration or Udyog Aadhar Registration

 

MSME Delhi Registration Online Procedure

The online registration has to be done on the official website. The following link is the link of the official website where you can register for the Udyog Aadhar. https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

Step 1 – On the website you will have to enter you individual Aadhar number. (in the case of a partnership any one of the partners can do this) after this enter the name on the Aadhar card.

Step 2 – Enter the OTP. (the OTP will come on the number that has been linked to the Aadhar card being used)

Step 3 – The applicant has to fill out the Udyog Aadhar Delhi form. In this form the following details have to be filed –

  1. Aadhar number
  2. Name of the owner of the MSME Delhi enterprise.
  3. The social category of the applicant General/ Scheduled Caste/ Scheduled Tribe/ Other Backward Classes (certificate/ proof for SC/ ST/ OBC)
  4. Name of the organisation or the MSME Delhi enterprise (if one applicant has many different enterprises these can be registered separately)
  5. The type of organisation/ enterprise. (partnership firm, private limited company, self-help group, proprietorship, Hindu undivided family, cooperative, society, trust etc)
  6. Permanent Account Number (PAN)
  7. Location of the plant – here the exact address of the plant has to be given
  8. Official address of the MSME Delhi enterprise (Please note that this could be the same as the previous if yes please just choose that and do not enter it again, this has only been provided for those enterprises that have a separate office and a plant)
  9. Mobile number of the applicant
  10. Email ID of the applicant
  11. Date of commencement of business that is the date on which you started operating
  12. Major activity of the unit – this could be either a manufacturer or a service provider. The applicant has to choose one.
  13. NIC 2 Digit code – the appropriate code has to be selected from the drop down menu.
  14. The total number of persons employed in the enterprise
  15. The net investment in plan and machinery in terms of money. (this has to be in Rs in lakhs)
  16. Finally the applicant has to fill in the details of the nearest district industry centre
  17. Once you have filled in all the details and checked the same click submit
  18. Enter the OTP which will come on the number that is linked to the Aadhar. And the process is complete.

 

MSME Delhi Registration Offline Procedure

This is especially useful in the scenario that you do not have an Aadhar card

Step 1 – Until the applicant receives his/ her Aadhar card the applicant can be made with the help of the MSME Delhi District Industry Centre or the MSME–DI.

Step 2 – Submit the following documents at the same –

  1. Aadhar enrolment ID or a copy of the request for Aadhar
  2. A valid address proof.

Step 3 – Fill out the registration form physically.

Step 4 – After filing out the form submit the same at the MSME Delhi District Industry Centre or MSME–DI. After this you will be given an acknowledgment form and you will finally get the Udyog Aadhar Registration certificate online.

 

Major Reasons for Online Udyog Aadhar Registrations in Delhi or MSME Delhi Registration

  1. It is free of cost and hence you have nothing to lose
  2. The government constantly makes policies and laws to favour the Micro Small and Medium Enterprises because these forms a very important part of our economy. Being registered under the same would allow you to avail the same.
  3. Concessions on the electricity bills
  4. Preference in applications for government tenders
  5. Subsidy on the fee for filing of patents and trademarks
  6. Several exemptions under direct tax laws
  7. Reduced interest rate on loans taken from banks

 

Benefits of Msme Delhi or Udyog Aadhar Registration in Delhi

  1. After registration the MSME Delhi will be entitled to government subsidies and
  2. They will be given financial support to participate in foreign expo
  3. They will be entitled to loans without guarantees (without any collateral)
  4. Loans at lower interest rates
  5. Octroi benefits
  6. Reduced fee for patent registration
  7. Protection against delayed payments
  8. Faster resolution of disputes
  9. Reimbursement of the payment that was made for the ISO certificate
  10. Excise exemption schemes
  11. Waiver of stamp duty
  12. Concessions on electricity bills
  13. Preference in getting government tenders
  14. Easier registration for other schemes using the Udyog Aadhar
  15. Subsidy on NSIC performance and credit ratings
  16. Eligible for the Industrial Promotion Subsidy
  17. Several exemptions under direct taxes (such as the Goods and Service tax)
  18. You can easily get a business account opened in any bank in India.

 

Documents and Information required for Msme Delhi or Udyog Aadhar Registration in Delhi

  1. The Aadhar card of the owner/ entrepreneur of the enterprise (the name on the Aadhar card, the Aadhar number and the number linked to the Aadhar are enough).
  2. Social category – General/ Scheduled Caste/ Scheduled Tribe/ Other Backward Classes (certificate/ proof for SC/ ST/ OBC).
  3. Name of the organisation or the MSME Delhi enterprise (if one applicant has many different enterprises these can be registered separately)
  4. The type of organisation (partnership firm, private limited company, self-help group, proprietorship, Hindu undivided family, cooperative, society, trust etc)
  5. Details of any previous registration (if any)
  6. Location of the plant/ enterprise (the applicant may enter multiple addresses if he/ she has more than 1 plant)
  7. Date of commencement of the enterprise (the date on which this enterprise formally commenced its operations)
  8. Account details of the applicant. The applicant must provide his/ her bank account number and the IFSC code of the banks branch where his/ her account exists.
  9. The NIC 2 Digit Code for the enterprise (National Industrial Classification Code) here the applicant may choose multiple National Industrial Classification Codes to include all their activities. These could be both manufacturing and services.
  10. The total number of employees working in your MSME Delhi industry. (Note that this number should only include the people who are being paid salary or wages by the enterprise)
  11. The total amount if investment in terms of money spent of the machinery and equipment in the MSME Delhi enterprise.
  12. The applicant has to fill the location of the District Industry Centre (DI) according to the location of the enterprise.
  13. Contact details of the owner/ entrepreneur (his/ her email ID and mobile number)
  14. PAN number of the owner/ entrepreneur (Permanent Account Number)

 

Various Advantage of getting an Udyog Aadhar Memorandum and MSME Delhi Certificate 

Udyog Aadhar Memorandum – It is a one-page registration form for Micro Small and Medium Enterprises to get registered under the MSME Delhi. This has come as a replacement of the EM I and the EM II.

Benefits –

  1. It will allow the enterprises to apply online for various services offered by the government
  2. It will allow the enterprise to register themselves for any service by simply using their Udyog Aadhar number
  3. It is a free and instant process
  4. This is open to all MSME Delhi enterprises and not only the medium enterprises (originally EM2 was only filed by the medium enterprises)

MSME Delhi Certificate – it is the certificate that an enterprise gets on the successful completion of the Udyog Aadhar Registration or MSME Delhi Registration.

Benefits –   

  1. One of the main reasons that people do not like these government schemes is because the registration process is often tedious and time consuming. But the Udyog Aadhar is different because it is not only a very simply process, but it can be done online by simply uploading your documents. (the process has been explained above)
  2. The MSME Delhi once registered will be getting benefits such as loans with lower interest rate, loans without any guarantee etc
  3. They will be given financial support to participate in the foreign expo.
  4. You can easily get a business account opened in any bank in India.
  5. They will be given financial support to participate in foreign expo
  6. They will be entitled to loans without guarantees (without any collateral)
  7. Loans at lower interest rates
  8. Octroi benefits
  9. Reduced fee for patent registration
  10. Protection against delayed payments
  11. Faster resolution of disputes
  12. Reimbursement of the payment that was made for the ISO certificate
  13. Excise exemption schemes
  14. Waiver of stamp duty
  15. Concessions on electricity bills
  16. Preference in getting government tenders
  17. Easier registration for other schemes using the Udyog Aadhar
  18. Subsidy on NSIC performance and credit ratings
  19. Eligible for the Industrial Promotion Subsidy
  20. Several exemptions under direct taxes (such as the Goods and Service tax)
  21. You can easily get a business account opened in any bank in India.

 

FAQ’s related to Udyog Aadhar Registration in Delhi or MSME Delhi Registration

Q 1. Is having an Aadhar mandatory for MSME Delhi registration under the Udyog Aadhaar ?

The Udyog Aadhaar Registration can be done online by individuals themselves 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 paper form), with the General Manager (GM) of the concerned District Industries Centre (DI). (This has been notified in the gazette dated 18-09-15.)

Can you update or edit the details for your Udyog Aadhar Number?

Yes, you can. You simply need to go on the following link – (last accessed on 15 January 2019) https://udyogaadhaar.gov.in/UA/UA_EntrepreneurLogin.aspx   

There you need to enter your Udyog Aadhar Number and the verification code and submit. After this enter the OTP received on the number linked to the Aadhar. Edit or change the details needed and submit the same.

 

Q 2. How can I register for the Udyog Aadhar ?

The registration can be done online and offline. The whole process is totally free and very simple.

For Online registration

The online registration has to be done on the official website. The following link is the link of the official website where you can register for the Udyog Aadhar. (this link was last accessed on 15 Jan 2019) https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

Step 1 – On the website you will have to enter you individual Aadhar number. (in the case of a partnership any one of the partners can do this) after this enter the name on the Aadhar card.

Step 2 – Enter the OTP. (the OTP will come on the number that has been linked to the Aadhar card being used).

Step 3 – The applicant has to fill out the Udyog Aadhar form. After submitting the same the registration process is complete.

For Offline registration

This is especially useful in the scenario that you do not have an Aadhar card

Step 1 – Until the applicant receives his/ her Aadhar card the applicant can be made with the help of the MSME Delhi District Industry Centre (DI) or the MSME-DI.

Step 2 – Submit the following documents at the same –

  1. Aadhar enrolment ID or a copy of the request for Aadhar
  2. A valid address proof.

Step 3 – Fill out the registration form physically.

Step 4 – After filing out the form, submit the same at the MSME Delhi District Industry Centre or MSME-DI.  After this you will be given an acknowledgment form and you will finally get the Udyog Aadhar certificate online.

Q 3. Is there any difference in the information sought under the EM I/ EM II and the new Udyog Aadhar ?

Yes, there is. The Udyog Aadhar under MSME Delhi requires much less information then the original EM I and the EM II.

Q 4. What would happen to the MSME Delhi enterprises that do not have an Aadhar number ?

At the moment Aadhar is mandatory for the registration under Udyog Aadhar. But the enterprise could use the offline route for registration which is particularly useful for those enterprises that do not have an Aadhar number.

Q 5. After getting a Udyog Aadhar can you get a GST registration ?

Yes, you can. This is because the Udyog Aadhar essentially certifies that your unit is an incorporated entity in India.

Q 6. Is having a bank account necessary to register under MSME Delhi ?

Yes it is. This is because it is mandatory to fill in the bank account details in the application form for the registering of the Udyog Aadhar (or MSME Delhi).

Q 7. What are the charges for the registration of Udyog Aadhar ?

There are no charges or fee on the registration. However, there could be a charge if you make use of some outside professional help such as a CA. this could be around Rs. 1000 to 5000.

Q 8. 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.

Q 9. What is the genesis of Udyog Aadhaar ?

The ministry for micro, small and medium enterprises had in September 15 notified Udyog Aadhaar, taking a cue from the prime minister’s radio show “Mann Ki Baat”, where he had talked about simplifying procedures to start a business with a single-page registration form. A large chunk of MSME Delhi enterprises are simply not registered due to the cumbersome paperwork involved in the process and, therefore, can’t tap the government schemes for them. The KV Kamath panel on financing the MSME sector, that has been the biggest job creator in recent years, had recommended that the registration should be universalized.
The concept of Udyog Aadhaar and ease of registration have thus originated to ensure wider coverage of MSME Delhi to avail the benefits under various Schemes of Central/ State governments.

Q 10. Who has access to the data from the Udyog Aadhar Memorandum portal ?

The Udyog Aadhar Memorandum Portal shall have suitable provisions to allow officials of the State Governments including GM DIs to have password protected access to data of their jurisdiction.

Q 11. Whether the multiple system of registration may exist after introduction of Udyog Aadhar Memorandum ?

All other online/ offline systems of registration of MSME Delhi created and maintained by Delhi Government have ceased to register new MSME Delhi forthwith. Such online platforms may be allowed to exist to enable access to useful legacy data for decision making. However henceforth, there is only one system – Udyog Aadhar Memorandum for the registration of new MSME Delhi units.

Q 12. Where can I find the National Industrial Classification code? And what is this ?

The NIC Code – National Industrial Classification Code. This code can be entered by selecting the code from the drop-down menu. Even if you do not know the code you can select the relevant code from the drop-down menu. (the codes in the drop-down menu also specify for which type of industry they are and hence the choice can be made easily)

 

For more details and information regarding the MSME Delhi or Udyog Aadhar please check out  companyvakil.com.

Company Vakil is an online portal where you can get information on a variety of topics ranging from intellectual property to legal documentation. This organisation also provides free legal consultation on call. The portal is user friendly and has a real time chat to help you with any doubts that you may have while reading the articles. The articles are very useful for the purposes of learning and understanding the procedures involved in things like GST/ MSME Delhi/ IE Code/ Patent/ copyright registration etc.