Preceding the execution of the MSME Development Act 2006, MSME area was characterized as the Small Scale Industries (SSIs) area. The constituent little and assistant units of the SSI area were characterized dependent on the occasional rules for characterizing such units.
With the happening to the MSME Development Act, 2006, the extent of MSME area was expanded. Instead of just businesses as under SSI, the idea of ‘big business’ was acquainted with incorporate both assembling and administration areas.
Following the usage of the MSME Development Act, 2006, the enlistment cycle for the MSMEs included documenting of two structures. These included Entrepreneurs Memorandum I (EM I) and Entrepreneurs Memorandum II (EM II). Where EM I was for the proposed or up and coming undertakings and optional in nature, EM II was needed to be documented by the current endeavors.
Further, EM II was needed to be recorded with District Industries Center (DIC) in the concerned state or association region following the venture commences.
So as to advance the simplicity of working together and disentangle the cycle of MSME enrollment further, the Ministry of MSME presented the Udyog Aadhaar enlistment.
Udyog Aadhaar Registration is essentially a solitary page online enrollment of the MSME. Under Udyog Aadhaar, the MSMEs can enlist by means of the self announcement in Udyog Aadhaar Memorandum (UAM), with no extra archives to be submitted for the equivalent.
Further, the MSMEs are not needed to pay any charges and can record more than one Udyog Aadhaar with a similar Aadhaar number.