Govt mulls 'Online Udyog Aadhaar Form' to ease SME registration

Top Stories

»	Indiaâs tech and durables sector sees 13 pc value growth in festive season
»	Apple iPhone exports from India hit record Rs 60,000 crore in April-Oct
»	India's smartphone market to exit 2024 with single-digit annual growth
»	Digital transfers of funds for public services up 56 pc in 2024: RBI Deputy Guv
»	Sensex slips below 78,000, investors lose over Rs 6 lakh crore

Saurabh Gupta | 01 Jul, 2015
With an aim to encourage Online Filing of Entrepreneurs Memorandum (or simply said Online registration) as a Micro, Small and Medium Enterprises (MSME), the Ministry of MSME, Government of India, is developing 'Online Udyog Aadhaar Form', which will simplify the registration process of small enterprises.

The Ministry of MSME has sought comments and views from the stakeholders (Chief Secretaries of all States Governments/ UTs) on the 'Udyog Aadhaar Form', informed MSME Ministry's latter dated June 19, 2015.

It said that the Kamath Committee Report on Financial architecture of MSME sector has given several recommendations including recommendations of the universalization of registration.

In consonance of the of the above recommendation of the Kamath Committee, Ministry has taken initiatives to develop one page simplified Registration Form "Udyog Aadhaar" under which MSME will self certify its existence, bank account, business activity details, employment and ownership details and other information.

The Ministry of MSME has also asked chief secretaries of all States Governments/ UTs to encourage small entrepreneurs for filing of Entrepreneurs Memorandum-I (EM-I) and Entrepreneurs Memorandum-II (EM-II) for all enterprises under MSMED Act 2006, said the latter.

"The manual procedure is ridden with challenges and is not considered investor friendly. On account of the cumbersome procedure and since filing of EM is not mandatory, many MSMEs have not registered themselves and are outside the scope of services offered by the Government," it said.

"This process has been made voluntary and entrepreneurs with fill difficulty in filing them in the essence of proper eco system of District Industry Centres (DICs)," it added.

In view of the above, Ministry of MSME through NIC have developed a web portal for Online filing of Entrepreneurs Memorandum I & II. The objective is to make the process of filing of EM I&II forms for the applicant though anytime registration.

Currently, this national portal has been adopted by 14 states/ UTs including Tamil Nadu, Karnataka, Odisha and 51023 EM-I and 13219 EM-II applications have been filed Online. Out of which 44556 EM-I and 10648 EM-II applications have been approved, till filing this report by SME Times. (Source: http://em.msme.gov.in/reports/emabstractreport.aspx?opt+2)

The adoption of online system has encouraged high rate of EM registration and enable more MSMEs to avail benefits from various national schemes, letter added.