Overview
Udyam Registration is a government registration that gives your business a unique identification number (Udyam Registration Number) and a certificate. It was introduced on the date of 1st July 2020 to replace the old system of MSME registration, which was called Udyog Aadhaar.
This registration helps the government identify and support MSMEs. It is a completely online process, and once you register, your business becomes officially recognized as an MSME.
Why
Udyam Registration is important for several reasons:-
- Legal Recognition – Your business will be recognized as an MSME under the law.
- Access to Government Benefits – MSMEs can apply for loans, subsidies, and other schemes.
- Easy to Get Loans – Banks and financial institutions give priority to MSMEs for loans.
- Protection Against Delayed Payments – MSMEs are protected under the MSMED Act if payments are delayed by buyers.
- Participation in Government Tenders – Many tenders are reserved only for MSMEs.
- Helps in Business Growth – With access to benefits and schemes, businesses can grow faster.
Process
The following steps are involved in the Udyam Registration process:-
Step 1: Go to the Udyam Registration Portal
Visit the official website: https://udyamregistration.gov.in
Step 2: Choose Registration Type
- If you are registering for the first time, click on “For New Entrepreneurs”.
- If you are already registered under Udyog Aadhaar, choose the appropriate option to migrate.
Step 3: Enter Aadhaar Details
- Enter your 12-digit Aadhaar number and the name as on the Aadhaar card.
- Click on “Validate and Generate OTP”. An OTP will be sent to your registered mobile number.
Step 4: Verify PAN Card
- Enter your PAN number. The system will automatically fetch your business details.
Step 5: Enter Business Details
- Fill in the details of your business: name, type, address, bank details, investment, and turnover.
Step 6: Confirm and Submit
- After filling in the details, double-check for errors.
- Click Submit.
Step 7: Get Your Udyam Registration Number
- After submission, you will get your Udyam Registration Number and Certificate.
- The certificate can be downloaded from the official portal.
Documents
The registration process is simple and does not require many documents. Here’s what you need:-
- Aadhaar Number of the Business Owner (for Proprietorship) or authorized signatory (for other types of firms)
- PAN Card of the Business
- GST Number (if applicable)
- Business Details – Name, address, bank account details
- Information about Plant and Machinery/Equipment
- Annual Turnover Information
For proprietorships, the Aadhaar number of the owner is mandatory. For partnerships, LLPs, companies, etc., the Aadhaar of a partner or director is needed.
Note: Udyam Registration is completely paperless and based on self-declaration. No documents are required to be uploaded during the registration process. The system auto-verifies details using PAN, Aadhaar, and GST databases.
Fees
No government fee is required for Udyam Registration. You do not need to pay any government fees. But in case you consult with professionals for services, then you may need to pay the consultation fee as per the service provider.
Timeline
Udyam Registration was launched on July 1, 2020, replacing the Udyog Aadhaar system. The URN is generated instantly upon application, and the certificate is usually issued within 1–4 business days.
FAQs
Udyam Registration is an online government registration process for Micro, Small, and Medium Enterprises (MSMEs) to get officially recognized and avail various benefits under government schemes.
Yes, you can register as an MSME under Udyam even if you don’t have a GST number. However, if your business is required to have GST (for example, based on turnover or type of business), you will need to provide it during registration.
The process is very instant.! Once you complete the online registration and submit your details, then you will receive your Udyam Registration Number and Certificate will be issued within 1–4 business days. It’s fast and hassle-free.
No, Udyam Registration is a one-time registration and does not require renewal. However, if your business information (like turnover or investment) changes, you should update it on the portal.
Yes. The Udyam portal allows for updating business information such as address, bank details, investment figures, turnover, and contact details. Updates can be made using the URN and Aadhaar-linked OTP verification.
Any business entity including proprietorships, partnerships, LLPs, private limited companies, and others — involved in manufacturing or service activities can apply if they meet the MSME classification criteria.
It is not mandatory for all businesses, but it is essential for those seeking to avail MSME benefits such as subsidies, priority lending, government tenders and protection against delayed payments.
MSMEs are now classified based on revised investment and turnover limits:
- Micro Enterprise: Investment in Plant & Machinery or Equipment ≤ ₹2.5 crore and Annual Turnover ≤ ₹10 crore
- Small Enterprise: Investment ≤ ₹25 crore and Turnover ≤ ₹100 crore
- Medium Enterprise: Investment ≤ ₹125 crore and Turnover ≤ ₹500 crore
Note: Export turnover is excluded from total turnover while determining MSME classification.
Yes, existing Udyog Aadhaar holders must migrate to the Udyam system. A special option for migration is available on the official Udyam portal.
Registered MSMEs get several advantages, such as:
- Collateral-free loans under government schemes.
- Interest subsidies on bank loans.
- Protection against delayed payments from buyers under MSME Samadhaan.
- Eligibility for government tenders with relaxed norms.
- Subsidies on ISO, patent, and trademark registration.
- Easier access to licenses, approvals, and certifications.
.jpg)
.jpg)
