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Which of the following enterprises is NOT eligible for Udyog Aadhar registration with Ministry of Micro, Small and Medium Enterprises, Government of I
Question

Which of the following enterprises is NOT eligible for Udyog Aadhar registration with Ministry of Micro, Small and Medium Enterprises, Government of India?

A.

Micro enterprise in manufacturing sector with an investment in plant and machinery of Rs 20 lacs

B.

Small enterprise in manufacturing sector with an investment in plant and machinery of Rs 3.5 crores

C.

Small enterprise in services sector with an investment in equipment of Rs 1.50 crores

D.

Medium enterprise in manufacturing sector with an investment in plant and machinery of Rs 15 crores

Correct option is D

Udyog Aadhar registration is applicable only for Micro, Small, and Medium Enterprises (MSMEs) that fall within prescribed investment limits under the MSMED Act, 2006. The eligibility for registration depends on the type of enterprise and the sector (manufacturing or services) it belongs to. The current thresholds for classification are as follows:

  • Micro enterprise: Investment in plant and machinery or equipment up to Rs 1 crore

  • Small enterprise: Investment above Rs 1 crore but up to Rs 10 crore

  • Medium enterprise: Investment above Rs 10 crore but up to Rs 50 crore

Medium enterprise with Rs 15 crores investment is above the threshold for Udyog Aadhar registration as Udyog Aadhar has been replaced by Udyam Registration, and under Udyam Registration, Medium enterprises must have investment up to Rs 50 crore but as per older Udyog Aadhar norms, enterprises with investment beyond Rs 10 crore in plant & machinery were not eligible. Furthermore, Udyog Aadhar was discontinued and replaced by Udyam Registration post 2020, which does not allow large enterprises beyond medium limits.

Information Booster:

The Udyog Aadhar Memorandum (UAM) was introduced for the purpose of providing easy registration to MSMEs in India. It simplified the process of recognizing MSMEs by allowing online self-certification without documents. The key eligibility criterion is investment in plant and machinery or equipment depending on whether the enterprise is in manufacturing or services. The limits were Rs 1 crore for Micro, Rs 10 crore for Small, and Rs 50 crore for Medium enterprises. However, Udyog Aadhar has been replaced by the newer Udyam Registration system from July 1, 2020, to align with the revised MSME definition under the Atmanirbhar Bharat scheme. Under Udyam, the limits have slightly changed, but large enterprises beyond medium thresholds are not eligible for this registration. Enterprises exceeding these investment limits are classified as large enterprises and hence cannot register under Udyog Aadhar or Udyam.

Additional Knowledge:

(a) Micro enterprise with Rs 20 lacs investment: This is correct as per MSME norms since the investment is below Rs 1 crore for manufacturing sector micro enterprises. Eligible for registration.

(b) Small enterprise with Rs 3.5 crores investment: Falls under Small category (Rs 1 crore to Rs 10 crore for manufacturing). Eligible for registration.

(c) Small enterprise in services sector with Rs 1.50 crores equipment investment: Services sector small enterprises are also eligible with investment up to Rs 10 crore. Hence, valid for registration.

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