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.
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.
What is UAM Number?
The Ministry of Micro, Small & Medium Enterprises has notified the guidelines for online filing of Udyog Aadhaar Memorandum (UAM), in exercise of the powers conferred by sub-Section (2) of Section 8 of the Micro, Small and Medium Enterprises Development Act, 2006. This initiative of my Ministry is a path-breaking step to promote ease-of-doing-business for MSMEs in India as the UAM now replaces the need for filing Entrepreneurs Memorandum (EM Part-I & II). The existing mechanism for filing EM by a Micro, Small and Medium Enterprise is put in place by respective States and Union Territories (UT). While some of the States/UTs have 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 introduction of filing a single UAM online by enterprises located anywhere in India would end these existing variations in the filing of EM.
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 the filed online shall unlock the potential of MSMEs.
The owner, director or proprietor of the entity will provide his/her 12-digit Aadhar Number, whether the enterprise or entity is a sole proprietor, LLP, a Private limited company or anything else. It should have the recognition certificate provided via the MSME registration process.
Here in this article, we have understood what is UAM number, 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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