The Udyam Registration system replaces the earlier UAM (Udyog Aadhaar Memorandum) system. Now, anyone who owns a small business can get officially registered and enjoy various benefits provided by the government. The process is digital, fast, and does not require much paperwork.
In this article, you will learn how the MSME Udyam Registration works, what documents are needed, the step-by-step process, and the benefits of registering your business under this system.
What Is Udyam Registration?
Udyam Registration is the new way of registering Micro, Small, and Medium Enterprises (MSMEs) in India. It was launched by the Ministry of MSME on 1st July 2020. After registration, you get an official Udyam Certificate which confirms your business as an MSME.
This certificate helps you get easy loans, government schemes, subsidies, and priority in public tenders. The registration process is completely free, online, and does not require any physical documents.
Who Can Apply for Udyam Registration?
The following types of businesses are eligible for Udyam Registration:
- Sole proprietorships
- Partnership firms
- Limited Liability Partnerships (LLPs)
- Private limited companies
- Public limited companies
- Hindu Undivided Families (HUFs)
- Trusts and Co-operative Societies
- Freelancers and startups
- Traders (retail and wholesale)
- Online sellers
MSME Classification
The MSME classification is based on two factors:
- Investment in plant and machinery/equipment
- Annual turnover
Below is the table that shows the updated criteria for classifying MSMEs:
- Micro Enterprises: Investment up to Rs. 2.5 crore and turnover up to Rs 10 crore.
- Small Enterprises: Investment up to Rs. 25 crore and turnover up to Rs. 100 crore.
- Medium Enterprises: Investment up to Rs 125 crore and turnover up to Rs 500 crore.
Documents and Information Required
You do not need to upload any documents, but you should keep the following details ready:
- Aadhaar Number – of the business owner or director
- PAN Card – individual or company
- Mobile Number linked with Aadhaar
- Email Address
- Business Name and Type
- Address of the Business
- Date of Starting the Business
- Bank Account Details
- Number of Employees
- NIC Code – it defines your business activity
- Investment and Turnover figures
Fast and Easy Udyam Registration Process – Step-by-Step
Follow these simple steps to complete your MSME registration online:
- Visit the Udyam Portal: Open your browser's official Udyam Registration portal.
- Fill in Business Details: Enter essential details like your business name, type, address, and bank account information. Ensure accuracy in the data.
- Review and Submit the Form: Review the information to confirm it's correct. After reviewing, apply.
- Pay the Registration Fee: Select your payment method and complete the registration payment.
- Receive OTP on Mobile: An OTP will be sent to the mobile number linked with your Aadhaar card.
- Enter OTP: Input the OTP sent to your phone to verify your identity.
- Complete Registration: Once your details are confirmed, your registration will be completed.
- Receive Your Udyam Certificate: Once verified, your Udyam Registration certificate will be generated and sent directly to your email.
Key Features of Udyam Registration
- Completely Online – No need to visit any office.
- Paperless – No document upload needed.
- Free of Cost – No government fee is charged.
- Permanent Registration Number – Once registered, it is valid for life.
- Simple Verification – Aadhaar and PAN are used for easy verification.
- Fast Processing – You can get the certificate within a few hours.
Common Mistakes to Avoid
- Wrong Aadhaar Details – Must be exactly as per Aadhaar card.
- Incorrect PAN Number – Should match Income Tax data.
- Wrong NIC Code – Choose the correct code that matches your business.
- Fake Turnover/Investment – Your data should match your GST and Income Tax records.
Benefits of Udyam Registration
Here are the major benefits your business can get after successful Udyam registration:
- Low-Interest Loans – Get loans at reduced interest rates under various government schemes.
- Collateral-Free Loans – Banks offer loans without security under the Credit Guarantee Scheme.
- Government Tenders – Easy access and preference in public procurement tenders.
- Tax Benefits – Several state governments offer exemptions in taxes and duties.
- ISO Certification Subsidy – You can claim a refund for ISO certification costs.
- Priority in Licensing – Quick approvals and licenses from government departments.
- Easy Market Access – Get listed on government e-marketplace (GeM) to sell products to government buyers.
- Protection from Late Payments – According to MSME laws, buyers must pay within 45 days.
Note: Now you can easily update udyam certificate through the udyam portal
Conclusion
Getting your MSME Udyam Certificate is now fast, simple, and hassle-free. You do not need any agent or middleman to do it. If you have your Aadhaar and PAN ready, you can complete the process yourself online in just a few minutes.
Udyam Registration gives your business recognition and unlocks access to a wide range of government benefits. Whether you are a trader, manufacturer, online seller, or service provider, registering as an MSME can help you grow and succeed in today’s competitive market.
So do not wait. Register your business under Udyam today and take your business forward with confidence.