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Aadhaar Udhyog or MSME License

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Aadhaar Udhyog or MSME License

What is MSME?

  • The term MSME is abbreviated form of “Micro, Small and Medium Enterprises”. Government implemented Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 to promote, facilitate and strengthen them so that they can be competitive in global market.

  • MSME sector play a vital role on contribution to growth and economy of India, along with economy it provides business opportunity and encourage new entrepreneurs to step into business and also it provides employment opportunity.

  • MSMEs contributes nearly 48% of export from India, 35% of GDP and more than 45% of Industrial employment. After agriculture, MSME sector is largest employment providing sector in India.

Who are classified as MSME?

There are three categories of business entities namely Micro, Small and Medium as per MSMED Act, 2006. The revised criteria w.e.f. 13th May 2020 for determining a business entity as MSME is as follows:

  • Important point to note here is that Traders are not covered under definition of MSME even if their investment or turnover might be within above prescribed limit.
  • Further, the word “and” is used between criteria of Investment and Turnover. That means both these criteria should be satisfied in order to be eligible as MSME.

MSME or Udyog Aadhaar Registration

  • Micro, Small and Medium Enterprises (MSME) registration also known as Udyog Aadhar registration is a certificate and contains a 12 aphlanumeric numbers as its identity. Udyog Aadhar registration are for entities who are dealing in manufacturing and services industry and entities who fall under the investment  and turnover limits as mentioned above.
  • The partner, director or proprietor of the entity will provide his/her 12-digit Aadhar Number, whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company or anything else. It should have the recognition certificate provided via the MSME registration process.
  • Typical Aadhar Udyog looks like

Amendment to Existing Registration

Exisiting MSME License can be amended under following situations:

  1. Where incorrect particulars were furnished while applying for Registration
  2. Where some particulars were left to furnished while applying for Registration
  3. Where some details have changed like change in bank details, changes in other particulars etc

Details required for Udyog Aadhaar registration

  1. Aadhaar number of applicant
  2. Pan card
  3. Name of entrepreneur (i.e. Owner)
  4. Social Category of entrepreneur
  5. Name of business or organisation
  6. Previous registration details of enterprise (If any)
  7. Constitution of organisation (i.e. Proprietor, Firms etc)
  8. Address of Factory and Registered office
  9. Date of commencement of business
  10. Cancel cheque
  11. Line of business activity
  12. Number of persons employed
  13. Investment (Plant & Machinery/ Equipments) made in business

Relief Package for MSME in COVID situation

The government has come up with various schemes and incentives for MSME Sector in a relief package. The details of which are as follows

Benefits of having Udyog Aadhaar registration

  1. Eligible for loan with or without collateral at subsidised rates of interest.
  2. Eligible for government subsidies
  3. Protection against delay in Payment
  4. Proof of business continuity
  5. Financial backing from the government for participating in foreign business expos.
  6. One of the eligibility criteria for micro-business loans and other related schemes
  7. Various benefits under direct tax laws
  8. Concession in electricity bills in some states
  9. Helps in opening current account in banks
  10. It helps in availing collateral-free loans up to Rs. 1 crore under  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE Scheme)


In case of any query, feel free to contact us. Team Finaccle offer quick services in efficient manner. You will get your MSME License within 24 Hours!

Frequently Asked Questions

Q. Is aadhar card compulsory required for registration?

A. Yes. In case an applicant is other than proprietor, Aadhar card of partners and directors is required.

Q. Are only new businesses allowed to register?

A. No, New and existing both type of businesses are allowed to register.

Q. Can a trading concern obtain Udyog aadhaar?

A. No, MSME deals with manufacturing and services industries only.

Q. Whether multiple registrations are required for multiple branches in different cities?

A. No, it’s a single entity certificate, however information about multiple branches must be furnished.


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