As a part of initiative to ease of doing business, Ministry of Micro, Small and Medium Enterprises vide its notification dated 18th September, 2015 notified Udyog Aadhaar Memorandum (UAM).
MSME stands for Micro, Small and Medium Enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
Aadhaar Number is mandatory for Filing Udyog Aadhaar Registration. In case of Proprietorship concern the Aadhaar Number shall be of the proprietor, in case of Partnership firm the Aadhaar Number shall be of the authorized Partner, In case of other forms of enterprise the Aadhaar Number shall be of the authorised person. Using the same Aadhaar number a person can file more the one Udyog Aadhaar Memorandum.
Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act. Though the MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for lower rates of interest, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment subsidies and other support.
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Apart from these benefits, the government also continues, in a phased manner, to enhance the ‘List of products reserved for purchase from MSME’. Accordingly, the MSME is aided by the government to make use of these product lists, and manufacture and supply these products to large scale industries, and make profit in the process.