What is Udyam Registration?
Udyam Registration is a government registration for Micro, Small, and Medium Enterprises (MSMEs) in India. It provides a recognition certificate and a unique identification number (Udyam Registration Number). It helps businesses avail of various subsidies, schemes, and support from the government.
Legal Background
Udyam Registration is governed by the Ministry of Micro, Small and Medium Enterprises (MSME) and was launched under the Micro, Small and Medium Enterprises Development Act, 2006. The new registration process was notified on 1st July 2020.
Classification of Enterprises (Revised MSME Definition)
| Enterprise Type | Investment in Plant & Machinery | Annual Turnover |
|---|---|---|
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
Who Can Apply?
- Proprietorships
- Partnership firms
- Hindu Undivided Family (HUF)
- Limited Liability Partnerships (LLP)
- Private Limited or Public Limited Companies
- Self-Help Groups, Co-operative Societies
Documents Required for Udyam Registration
- Aadhaar number of the owner or authorized signatory
- GSTIN (if applicable)
- Business address
- Bank account details
- NIC code (National Industry Classification code)
How to Register on Udyam Portal
Step-by-step Process:
- Visit the official Udyam Registration portal
- Click on “For New Entrepreneurs who are not Registered yet as MSME”
- Enter Aadhaar number and validate with OTP
- Enter PAN and validate
- Fill in business details like name, address, activity, bank account, etc.
- Choose NIC code and investment/turnover details
- Submit and verify through OTP
- After successful submission, you’ll get your Udyam Registration Certificate online.
Udyam Registration Number
- It is a 16-digit Unique Identification Number
- Format: UDYAM-IN-XX-XXXXXXXX
Udyam Registration Certificate
- It is issued instantly online after successful registration
- It contains enterprise details like name, type, classification, etc.
- No physical copy is issued; it can be downloaded anytime from the portal.
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Udyam Registration for Existing MSMEs
Businesses already registered under:
- EM–Part II or UAM (Udyog Aadhaar Memorandum) must re-register on the Udyam portal. Their previous registrations are not valid after 31st December 2021.
Benefits of Udyam Registration
- Easier access to government schemes like subsidies, loans, and grants
- Collateral-free loans under Credit Guarantee Scheme
- Interest rate subsidies and reduced electricity bills
- Faster approvals and clearances
- ISO certification fee reimbursement
- Market support through trade fairs and exhibitions
- Reservation policy for manufacturing/production in certain sectors
- Protection against delayed payments
- Exemption under Direct Tax Laws
- Priority in government tenders
Updating Udyam Registration
- Enterprises must update details if there’s any change in turnover or investment
- Reclassification is done automatically based on IT & GST returns
Is Udyam Registration Free?
Yes, Udyam Registration is completely free. Beware of third-party websites charging money for registration. Use only the official government portal.
Helpline & Support
- MSME Helpline: 1800 123 3468
- Email: [email protected]
- Website: https://udyamregistration.gov.in
Common Mistakes to Avoid
- Entering wrong Aadhaar/PAN details
- Using third-party services that charge fees
- Not updating information regularly
- Not using NIC codes properly
Udyam & Other Government Integrations
- Linked with Income Tax, GST, and GeM Portal
- Useful for availing Startup India, Atmanirbhar Bharat, PMEGP, etc.
Validity
- The Udyam Registration Number is valid for lifetime
- No need to renew the certificate
