Udyog Aadhar – Online Udyam Registration for MSME Certificates

From July 2020, the Union Ministry of Micro, Small and Medium Enterprises introduced a new mechanism to register and classify MSMEs. Known as Udyam registration, it lets new and existing businesses register themselves on the MSME portal.

Eligibility Criteria for Udyam Aadhaar registration

MSMEs wishing to qualify for Udyam Aadhaar registration must meet the following eligibility criteria:

• Type of enterprise: The enterprise should be a sole proprietorship, partnering firm, limited liability partnership, or any other legal entity. The enterprise must be a micro, small, or medium enterprise.
• Investment limits: There is a stringent criterion based on investment and turnover as the table below clearly outlines:

Type of Enterprise	Investment Criteria	Annual Turnover Criteria
Micro	Does not exceed ₹1 crore	Not exceeding ₹5 crore
Small	Does not exceed ₹10 crore	Not exceeding ₹50 crore
Medium	Does not exceed ₹50 crore	Not exceeding ₹250 crore

Documents Required for Udyam Certificate

One can get their business registered under UDYAM with a basic set of documents. Read along to understand the UDYAM registration documents list for better understanding on the requirements:

Document	Information
Copy of Aadhaar card	Individual / Proprietor / Partners / Directors duly linked with an active mobile number
Copy of PAN card	Individual / Proprietor / Partners / Directors ( linked with Aadhaar)
MSME certification	If already registered
PAN card	Of the company
GST number	Of the company
Contact information	Phone number, email ID etc.
Details of the bank account	Of the company or the individual; either savings or current account
ITR statements	Including losses and profits
Information on the units	If the company registration and the name of its units are the same or different. If different, details to be included.
Category of the individual	SC, ST, OBC etc.
Specify the disability	If there is any
Desired status	Either as a manufacturing unit or service provider or as both
Information on employees	Number, details on their gender etc.
Willingness to participate	In the Gem portal

Details about the registration process

Before dwelling deep into the process of how to apply for UDYAm registration, it is essential to understand who can apply for UDYAM registration. 

Any individual planning to start a micro, small or medium enterprise may apply for Udyam registration in the scheme’s official portal. You don’t have to upload any document, the entire process will be based on your self-declaration. Upon registration, the individual is given an identification number. This will be called Udyam registration number. This number is permanent. Upon completion of the process, the applicant receives a virtual certification known as Udyam registration certificate.

All units that have GSTIN (Goods and Services Tax Identification Number) given against one PAN number will be treated as one. The investment and turnover of such units are calculated as the average of all of them.

Your self-declaration is valid only till the 31^st of March 2021. From that day, GSTIN is a must.

Udyam registration form is available on its official portal. There is no registration fee for the process. Aadhaar number is a must here. You may do as per the instructions you receive on the portal in this regard. If the venture is a limited liability partnership, trust or a society, it should furnish the details of the authorized dignitary’s Aadhaar and GSTIN.

If the venture registers itself along with the PAN number, a self-declaration will compensate for insufficient information.

No venture is allowed to have more than one Udyam registration.

Any venture that misrepresents information offered in the self-declaration is liable for the penalties given in Section 27 of the MSMED Act. All ventures that are registered with EM–Part-II or UAM are required to have Udyam registration on or after July 1^st.

How to register for Udyam Aadhaar certificate?

This process of registration through the Udyam portal is very easy, and further, the form fill-up process is quite straightforward as well. This system has rejuvenated, and also takes less time as compared to the old process which has been discarded. This is essential to understand that this MSME Registration is completely free and there is no charge taken by the website as any fee for issuance of any registration certificates. As things are quite efficient now, here is a very simple step-by-step process for getting registration under Udyam. It is:-

Step 1: Go to the official website for UDYAM registration online

Firstly, to get the business registered on UDYAM online you will need to visit the official government website (https://udyamregistration.gov.in/) of Udyam Registration. Next click on the button for new entrepreneurs that are not registered as MSME. You can do this by clicking on the “For new Entrepreneurs who are not registered yet as MSME” button.

Step 2: In the second step you need to enter your personal details required for UDYAM registration –

Initially, a person would be required to input one’s name and their twelve-digit Aadhar number. Next, select the button “Validate & Generate OTP.” After which you would receive another OTP on the mobile number which is registered on Aadhar. Input this OTP.

On a special Note: For all enterprises, the Aadhaar number is mandatory for the Udyam Registration, of the proprietor if he/she owns a proprietorship firm; the partner who is managing if it is a partnership firm; the Karta if it is a Hindu Undivided Family (HUF); the authorized signatory if it is a Limited Liability Partnership, or a Society, Company and or a Trust or Cooperative Society.

Step 3: Verification of PAN

PAN (permanent Account Number) is one of the most important UDYAM Aadhar registration documents. You need to choose the type of the firm and then enter the PAN no then select the validate button. Validation of PAN will take place.

For all enterprises, the Aadhaar number along with the PAN number and signature is mandatory for the Udyam Registration, of the proprietor if he/she owns a proprietorship firm; the partner who is managing if it is a partnership firm; the Karta if it is a Hindu Undivided Family (HUF); the authorized signatory if it is a Limited Liability Partnership, or a Society, Company and or a Trust or Cooperative Society.

Step 4: Adding Details of Correspondence is the next step

Once all the details which are mentioned above are filled in, the next thing which one needs to offer would be the full postal address of this enterprise/company/entity. Further, the info about their district of the company, its pin code, the state, their email address, and the mobile number.

Step 5: Fill up all the Bank Details

One would need to enter their firm’s bank account number which is active along with the IFSC code of that branch in which the account is opened. If one doesn’t have the IFSC code of that branch, you can get it from the passbook of the bank or through its website.

Step 6: Details of the Enterprise

One needs to mention the main activity of their enterprise, it can be “manufacturing” or  “services”. One is required to submit the number of all the persons that are employed under the NIC or National Industry Classification Code for the activities.

Post filling these details, the next thing which is required is to enter the full amount of the money (in some lakhs) which one has invested in the plant or machinery.

 Step 7: Choose the DIC or District Industry Center and approve the Declaration

In the last step of the application process, one needs to select their DIC or district industry center that is available from the drop-down list. One then needs to accept the terms and conditions and then choose the “Submit and Get final OTP” button.

Input the OTP which is sent on the registered mobile number and choose the “Final Submit” button. After clicking on the ‘Submit and Get Final OTP’ button one would get a registration number. After all the information is completely verified by the concerned authorities, one would get an E-registration document that is sent on the registered e-mail id.

How to check MSME Registration?

Once an entrepreneur has initiated the UDYAM registration online for his/her business, they can check MSME registration with a few simple steps:

• Go to the official website where you made the UDYAM registration online
• Click on the login page
• Punch in the details required to login
• Viola! You can download the MSME UDYAM certificate

Why does one need Udyam Registration?

Having Udyam registration for your venture entitles your business to the following benefits:

1. You are entitled to collateral-free loans from any bank To boost the MSME sector in the country, the government offers special schemes and loan provisions under which collateral free loans are offered to the UDYAM registered MSMEs
2. You can request a lower rate of interest for loans from your bank/NBFC
3. The government will reduce your charges on claims : To boost economic development, the government runs schemes to help small businesses and businesses in priority sectors. If your UDYAM registered business qualifies under certain schemes under the MSME sector, then you may benefit from the reduced interest rates and charges on claims
4. Your venture is eligible for concessions in electricity bills : Certain qualifying businesses may enjoy the benefit of reduced electricity charges citing special government run schemes aiming to reduce the liabilities on the business by offering subsidies with an aim to boost productivity and sector growth
5. You are entitled to receive subsidies from National Small Industries Corporation and other Government entities 
6. Your business is eligible for reimbursement of the cost involved in obtaining ISO certification : One of the good things about small businesses is the support offered to get the ground running. This is done by easy access to the markets as well as ease of registration and getting necessary certifications. Eligible UDYAM registered MSME businesses are offered reimbursement of the cost involved in obtaining an ISO certification.
7. The Government of India has an excise exemption scheme in place for you : For certain qualifying businesses, the government of India offers excise exemption scheme to offer better access with relatively lower tax burden, which can help the business take off with lowered liability
8. You avail tax exemptions without any difficulty.: Government offers tax subsidies to small businesses in priority sectors to ensure the growth of the business by lowering their tax liability. UDYAM registered businesses can apply for and avail tax concessions, and exemption to lower their tax liability paving way for business growth

How does the Government offer any support to increase competitiveness in the manufacturing sector?

The Government conducts a National Manufacturing Competitiveness Program to help MSMEs in this regard. Following schemes are there in place to assist new ventures to increase their global competitiveness:

• Promotion of Information & Communication Tools  in the MSME sector
• Lean Manufacturing Competitiveness Scheme for MSMEs
• Design Clinics Scheme for MSMEs
• Technology and Quality Up-gradation Support to MSMEs
• Enabling Manufacturing Sector to be Competitive through Quality Management Standards and Quality Technology Tools
• National campaign for building awareness on Intellectual Property Rights
• Setting up of Mini Tool Room under PPP Mode
• Marketing Assistance and Technology Upgradation Scheme for MSMEs
• Support for Entrepreneurial and Managerial Development of SMEs through Incubators
• Code under Market Development Assistance scheme

State the process of what one can do in case of complaint or discrepancy

If any discrepancy occurs or if there is any complaint, one can go to the general manager of any of the District Industries Centre through the concerned district who shall be undertaking another inquiry for the verification of these details of the Udyam Registration which is to be submitted by the owner of the enterprise.

After which, the concerned matter would be forwarded with some required remarks to the Commissioner or Director or the Industry Secretary who is concerned with the State Government. He will be issuing another notice to this enterprise and after presenting the case, which is based on their findings, may be corrected or recommended to the MSME Ministry of the Micro, Small or Medium Enterprises, Government of India, to cancel this Udyam Certificate of Registration.

Frequently Asked Questions:

1. What is the fee for Udyam registration?

Formally, registering your venture on Udyam portal is completely free of cost. But an expert may charge you an MSME registration fee of 1099 for the purpose. However, to save the costs you can simply follow the aforementioned steps to get the USYAm registration completed. The entire process is free of charge and really fast, simple, and convenient.

2. Can you explain the difference between Udyog Aadhaar and Udyam registration?

Udyam registration is the new and simplified version of Udyog Aadhaar. Earlier, the process was quite time-consuming. All thanks to the streamlined registration process, the time taken to complete the registration is negligible. Once the registration is done, the entrepreneur can complete the MSME registration certificate download.

3. Is Udyam registration a legal requirement?

If you’re wondering – Is MSME registration mandatory? Yes. Udyam registration is a legal mandate in India for registering new business.

4. Is Udyam registration mandatory for existing enterprises?

Yes. Udyam registration is legally binding even for existing businesses. Once the businesses are registered with UDYAM, they can verify UDYAM registration by simply visiting the website and providing the necessary details.

5. Is Udyam registration the same as MSME registration?

Yes, both are the same registration.

6. Is there any provision to renew Udyam registration number?

No. As per the recent guidelines in this regard, Udyam registration number is permanent. You don’t have to worry about renewing it.

7. Are MSME and Udyam registration the same?

Yes. They are the same. Registering here gives you a certification of recognition and an identification number.

8. How many days will it take to get an Udyam registration certificate?

It generally takes four or five days after submitting the application. You receive an email notification with your registration number. At times, the process may take more than 15 days to complete. However, citing operational efficiency and revamped processes, the processing times for obtaining registration certificate has decreased significantly.

9. Is it mandatory that my phone number is linked with Aadhaar when applying for Udyam registration?

Yes. Udyam registration is done using your Aadhaar number. And you will receive an OTP on the phone. You cannot verify your application without an Aadhaar-linked phone number.

10. If an individual is a director of more than one company, can he use his Aadhaar number to apply for Udyam registration?

Yes, an individual is a director of more than one company, he can use his Aadhaar number to apply for Udyam registration

11. How can I apply for MSME in Udyam?

• Visit udyamregistration.gov.in, which is the udyam registration portal
• Enter your Aadhaar number and name as per Aadhaar
• Click on validate and generate OTP
• Validate OTP through udyam verification
• After udyam registration verification, fill in the details
• Click on ‘Submit and Get Final OTP’
• The certificate will be shared over email, and you don’t have to worry about any Udyog Aadhar registration fees.
• You can also check the udyam registration status if you want to.

12. Who is eligible for MSME Udyam Registration?

The following are eligible for MSME udyam registration:

• Partnership firms
• One person company
• Limited companies
• Private Limited Companies
• Limited Liability Partnerships, etc

13. What are Udyog Aadhar Benefits?

The following are the udyam Aadhar registration benefits:

• Registered MSMEs are qualified to get bank loans without collateral or any security
• Eligible for up to a 50% incentive for patent registration
• Can receive upto 1% discount on the interest they pay at any bank
• Bank loans are available at an attractive rate

14. What is the NIC code for Udyam Registration?

It is a unique identification number provided to MSMEs.

15. Who is eligible for Udyam registration?

Proprietorships, HUFS, Limited Companies, Private Limited Companies, One Person Companies, Limited Liability Partnerships, etc., are all eligible for Udyam registration.

Udyam MSME News

Udyam and Government e-Marketplace Ink MoU to Boost MSMEs

The Government of India’s e-Marketplace (GeM) and Udyam, the MSME registration portal, have entered into a Memorandum of Understanding (MoU) to bolster micro and small enterprises (MSEs). Under the agreement, Udyam-registered MSE data will be shared with GeM, simplifying the onboarding process for these businesses. Additionally, GeM will conduct workshops and training sessions for MSEs, fostering awareness about the public procurement portal. The collaboration will open up opportunities for MSEs to participate in trade fairs, expos, and ‘Make in India’ initiatives, assisting government buyers in achieving their MSE procurement goals. As of now, GeM hosts 65.42 lakh sellers, including 8.32 lakh MSEs, while Udyam has registered 2.06 crore MSMEs.

News Updated Date: 20th July 2023

Data Report Reveals Almost 9 Crore Employment Falls Under MSMEs Registered on Udyam Portal

An impressive statistical data analysis report was divulged on the Udyam Registration portal by the MSME Ministry over two years following the launch of the portal. The report mentions the following aspects

1. Around 8.81 crore people are employed by 1.19 crore Micro, Small & Medium Enterprises got registered on the portal
2. Data published on the official portal notes that out of total employment, almost 2.05 crore are women.
3. As per the Government export statistics, 1.48 lakh units got registered with an export value of Rs 9.55 lakh crore.
4. Considering business activity, 34,000 enterprises got registered on the Udyam portal.
5. These enterprises were under manufacturing as compared to 84.74 lakh service MSMEs.
6. 95%, i.e., over 1.14 crore of the total registered were micro, followed by 3.54%, around 4.23 lakh falls under small businesses, and 0.32% relatively 39,289 was under medium enterprises.

As MSME registrations exceeded 1 crore on the portal in August 2022, a handful of enterprises cancelled their registrations. The Ministry of Micro, Small & Medium Enterprises – Bhanu Pratap Singh Verma shared the data in Lok Sabha, which mentions that almost 35,501 ventures had revoked their registration.

As of July 15, 2022, around 67% of rounds worth 24,075 registrations got cancelled in FY20-21, whereas 931 registrations got withdrawn in FY21. Talking about FY22, around 10,495 ventures took back their Udyam licenses. However, the abolished total count was only 0.35% of the total registrations on the portal to date.

The government took the initiative to launch this portal after the conversion seen between manufacturing and services businesses. This step was introduced to encourage the MSMEs to get adopted into the formal economy in the form of registration to sort out several problems faced by enterprises.

News Updated Date: 24th November 2022

1 Crore MSMEs registered on the Udyam Portal

Becoming self-reliant and generating employment 

The minister for Micro Medium and Small Industries (MSME) revealed that the recently launched Udyam portal had achieved 1 crore registrations in 25 months. The highlights and achievements are:

• The definition of MSMEs had been changed in terms of the investment and the amount of machinery used
• The newly registered MSMEs have reported employing 7.6 crores of people out of which 1.6 crores are women
• The Digi locker facility for Udyam registration has also been launched
• The Udyam portal is linked to the GSTN and CBDT portals, requires minimum documentation, and is hassle-free

The Minister expressed satisfaction with the progress but reminded the people that MSME registration is necessary to avail of the benefits and subsidies offered by the government to MSMEs from time to time.

Though the original target was to achieve 2 crore registrations in 16 months, the start is encouraging.

News Updated Date: 09th August 2022

Narayan Rane: MSMEs suggestion to raise the turnover cap for small units will be taken to PM and finmin

Union minister Narayan Rane said he would be taking in the suggestions of MSME associations to raise the turnover threshold for categorizing small companies to Prime Minister and finance ministry. The proposition regarded to increasing the turnover of small units from Rs. 50 crores to Rs. 100 crores. The said classification in terms of investment in plant/ machinery was less than Rs. 10 crore. It was also pointed out that MSME contributes to about 50 percent of the country’s exports and 30 percent of the country’s GDP (Gross Domestic Product). There were other matters in place related to registration of the Udyam portal and CIBIL score. Additional matters discussed on Wednesday were access to global markets, technology progress, enhancement of skills, and transparency in financial norms.

News Updated Date: 27-05-2022

Partnership of TransUnion CIBIL and FICCI to help MSMEs

FICCI, the Federation of Indian Chambers of Commerce & Industry, has partnered with TransUnion CIBIL aims to develop a nationwide education program in Assam, Tripura and Maharashtra to empower MSMEs and aware them of CIBIL rank, credit management and commercial credit information to provide rapid and easy access to finance. TransUnion CIBIL supports MSMEs and related sectors by publishing insight reports like the Emergency Credit Line Guarantee Scheme (ECLGS) analysis report and many.

About this partnership, Harshala Chandorkar, Chief Operating Officer of TransUnion CIBIL said that the Indian economy immensely depends on the MSMEs, however, a huge population do not avail credits formally, it proves that this program can make a huge improvement in this very sector while Jyoti Vij, Deputy Secretary-General of FICCI stated that less knowledge on finance accessibility becomes a barrier in the way of the growth of both MSMEs and the economy of the nation.

Updated Date: 14-03-2022

Bihar Government and SIDBI partnership will strengthen the MSME sector in the state

The Small Industries Development Bank of India (SIDBI) and the Bihar Government have tied together to promote MSMEs (micro, small and medium enterprises) in the state. The SIDBI, industries department, Bihar Government, and the BIADA (Bihar Industrial Area Development Authority) have signed two memoranda of understanding (MoU).

• Under the first MoU, SIDBI will deploy PMO to boost the MSME ecosystem in the state.
• As per the second MoU, a small- and medium-sized enterprise (SME) will benefit from SIDBI’s close collaboration with BIADA to set up any industrial unit on land/plots allotted by BIADA so as to promote industrialization in a state, according to SIDBI.

Among those present were Syed Shahnawaz Hussain, the Minister of Industries, Bihar; Brijesh Mehrotra, the additional chief secretary, Bihar; and Pradeep Kumar Jha, the branch in-charge of SIDBI Patna.

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