Frequently Asked Questions and Answers (Last Updated on 24/02/2016)

It is clarified that once the UAM has been notified dated 18-09-15, there cannot be a different cut-off date announced for adopting UAM. However, in order to maintain continuity, the cases of EM-I/II filing under process till 18-09-2015 may be accepted.

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.

The Udyog Aadhaar portal has been envisaged to take care of this requirement.

The 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.

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 UAM portal in so far as online verification of a MSME unit is concerned.

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.

The information sought is on self-certification basis and no supporting documents are required at the time of online filing of UAM.

The role of facilitating the creation and growth of enterprises in the States/UTs is not proposed to change in any manner whatsoever through UAM. The concept of “Udyog Bandhu” may therefore not be affected by UAM.

Yes, since the new system constitutes self declaration format, the change in the line of productions accordingly may be incorporated.

At present Aadhaar Number is mandatory for registration under UAM. However, the GoI will find a way out for covering those cases where Aadhaar Number is not available.

Legally, the EM-I/II ceases to exist after 18-09-15. States/UTs may encourage providing all benefits/concessions to MSMEs based on UAM only.

No. Howver, GM DICs , on the UAM portal, shall be able to enter their remarks on the respective information provided by the entrepreneurs while filing the UAM online.

New registrations in the EM Portal have been stopped forthwith.

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.

Presently the NIC Codes are only available in English. However, the same may be made available in Hindi in due course.

Since the UAM is being filing on self certification basis and the UAN is generated instantly, there cannot be any monitoring of the registration process. However, the enterprises filing the UAM online are liable to provide documentary proof of information provided in the UAM, wherever necessary, to the Central Government, State Government or such person as may be authorized.

Notification clearly states that the UAM filed is on self declaration basis. Therefore, no separate disclaimer is required.

Power load indicates the requirement of energy to the MSME unit. This has no relevance to the activity of the enterprise and the subject matter is dealt by the State/UT Governments.

The legacy of SSI registration and EM-I/II does not mandate for updation and the same used to be filed as a one-time exercise on the part of MSME units. The same is proposed to continue.

It may not be made obligatory for the closing unit to inform about it to the State/UT concerned or the UAM portal.

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(DIC). The same has also been notified in the gazette dated 18-09-15.
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 a greater ease of registration at the UAM portal.

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 enterprises in India 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 MSMEs to avail the benefits under various Schemes of Central/ State governments.

Some of the States have less than adequate coverage till date as per the UIDAI data. It has been clarified to such States, such as Assam that the option of assisted filing of UAM in offline mode with the GM (DIC) could be resorted to. Aadhaar number is not a mandatory requirement when the States/UTs have offices in the Districts headed by GM (DICs) and whose primary role is to promote and facilitate industries in the District. The UAM can be filled through the concerned GM (DIC).

The States/UTs have been asked to sensitize their District Industries Centers for a proactive role in Udyog Aadhaar.

Prior to 18-09-15, when the Entrepreneurs’ Memorandum-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 convergence of all heterogeneous systems to a single system of registration. The system is capable of delivering assured ease of doing business where the UIDAI has coverage i.e. 92% of the country’s adult population.

The Udyog Aadhaar 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 Ministry of MSME is likely to save cost in the long run since States/UTs would no longer be requiring to maintain the same.

States with low coverage under Aadhaar card have been requested during the earlier video conferences to use the offline mode of UAM. The offices of GM (DIC) may assist the entrepreneurs by filing their UAM online. Aadhaar number is not a mandatory requirement for filing UAM. The UAM form in hardcopy duly filled in without Aadhaar number can be submitted to the concerned GM-DICs. GM-DICs have been authorized to file such UAMs without Aadhaar number online.

Government of Assam may accordingly sensitize their District Industries Centers.

The number of employees does not have a bearing on the size or type of the enterprise as per the MSMED Act'2006. A single figure indicating "persons employed' is being captured in the UAM

Investment in Land, Building etc. are not material for classification of MSMEs. The Act permits classification only on the basis of the Investment on Plant & Machinery.

The registration process is designed to capture the mainline of business and not each and every product (including their variations and micro descriptions). Therefore, UAM captures the main activity, either in manufacturing, or, on service side. The aim is to work towards Ease-of-doing-business

DIC could collect hardcopy of the online application and file the UAM online from their offices. The connectivity issues may be sorted out in consultation with local offices of NIC. The MC offices at the district level may also be utilized by DICs for online filing of UAMs.

Neither online filing nor having Aadhaar number is mandatory for entrepreneurs to file UAM. The UAM form in hard-copy duly filled in without Aadhaar number can be submitted to the concerned GM-DICs. GM-DICs have been authorized to file such UAMs without Aadhaar number online. The entrepreneurs having Aadhaar number can file the UAM by themselves using the online facility.

It was suggested that such awareness be spread through the District Industries Centers (DICs). Further, the DICs should write a welcome letter to each entrepreneur for successful filing of UAM registration.