Udyam Registration – Udyam Aadhar Registration Certificate, Process, Benefits, Eligibility, Documents
Oct 20, 2023
The Ministry of Micro, Small & Medium Enterprises has launched the Udyam Registration Portal to boost and ease MSME growth in India. It provides all necessary support to MSMEs across the board.
The Udyam Registration, also known as an MSME Registration, includes a government sign-off, a Recognition Certificate, and a Unique Number. This legal and practical certification is vital for small or medium business or enterprise owners.
Under the Ministry of MSME, GOI, micro or smaller business enterprises can register using the Udyam Registration process. This process is entirely online, based on self-declaration, and free of cost. It is a hassle-free registration process and a step towards Ease of Doing Business (EoDB) for MSMEs. Your Udyam registration number will serve as a basic identification number for your enterprise.
All classes of MSME enterprises that the following cases own:
- Partnership firm
- Hindu Undivided Family
- A self-help group (my contribution)
- Cooperative (by the member)
- Society (by the member)
- Trust (by contribution)
These can apply for the MSME registration on the Udyam Registration portal, udyamregistration.gov.in. The online business loan system designed for MSMEs supports them across the board. It is part of the government’s efforts to digitise India and organise processes to make it easier for businesses to operate. As a small or medium business owner, you can grow your business without worrying about the registration process.
What is Udyam Registration?
If you are an MSME operating in India, obtaining Udyam Registration is a wise decision. It’s an e-certificate provided by the government, replacing the Udyog Aadhaar Memorandum (UAM) registration.
Although not mandatory, applying for Udyam Registration is highly beneficial for MSMEs as it makes them eligible for government benefits under the MSME category, facilitating business growth.
The government issues a unique identification number and an MSME recognition certificate upon getting Udyam Registration. This certificate entitles the enterprise to receive government benefits for MSMEs. The Udyam registration remains valid till the enterprise exists. This ensures permanent registration for MSMEs.
Udyam registration is an important step towards making business easier for MSMEs in India. So, if you own an MSME and want to take your business to the next level, getting Udyam Registration is the way to go. It unlocks a great scope and benefits that help your business grow and expand. This will make your journey smoother and more comfortable.
Benefits of Udyam Registration
By registering as Udyam, enterprises can enjoy a multitude of benefits, including:
- Udyam registration is a permanent and paperless process for enterprise identification
- Enterprises can specify any number of manufacturing and service activities in one registration.
- Registered enterprises will turn eligible for priority sector lending from the end of banks.
- MSME-registered enterprises can avail of the benefits of various schemes managed by the Union Ministry of MSMEs.
- Enterprises having Udyam registration can register on Government e-Marketplace (GeM) and SAMADHAAN portal
- MSME registered enterprises can be onboard on Trade Receivables Discounting System (TReDS) platform
- Registered MSMEs can have an edge in government tenders and protection against delayed payments.
The MSME registration process is a hassle-free and fully online experience. The registration process is paperless and based on self-declaration, so uploading any documents or proofs is unnecessary.
With just your Aadhaar number, an enterprise can register itself with ease. The system is fully integrated with Income Tax and GSTIN systems, allowing for automatic updates of investment and turnover details from government databases.
Effective from 1st April 2021, Udyam Registration requires linking PAN and GSTIN, as per the CGST Act 2017 and the Ministry of MSME’s notification, S.O. 1055(E) dated 5th March 2021. If an enterprise has previously registered under EM-II, UAM, or any other registration issued by the Ministry of MSME, it must re-register under Udyam.
While an enterprise can specify any number of activities, including manufacturing or service, in one registration, they can only have one Udyam Registration. This ensures an organised and efficient registration process for MSMEs, enabling them to focus on growing their business without any regulatory burden.
Overall, the MSME registration process is a game-changer, making it easier for enterprises to access government schemes and support.
Eligibility for Udyam Registration
Udyam registration means recording a specific business as a Micro, Small, or Medium enterprise (MSME) with the Ministry of Small, Micro and Medium Enterprises. Registering as an Udyam will help you and your business avail of certain loans, schemes and subsidies or considerations that the government declares to help MSMEs grow.
To be classified as a Micro, Small, or Medium Enterprise (MSME) for registration, your business must meet specific investment and annual turnover limits. Here are the exact figures that your business must make to qualify as an MSME:
- Micro enterprises: If you want to register your business as a micro-enterprise for Udyam registration, your investment amount should be below Rs. 1 crore. Your annual turnover should not exceed Rs. 5 crores.
- Small enterprises: To qualify as a small enterprise for Udyam registration, your investment amount should be less than Rs. 10 crores, and your annual turnover should be less than Rs. 50 crore.
- Medium enterprises: As the largest enterprise on this list, you must invest less than Rs. 50 crores to register as a medium enterprise for Udyam registration. Your annual turnover must be less than or near Rs. 250 crores.
If your business meets the above criteria, you can easily sign up for Udyam registration as an MSME without any hassles. The registration process can benefit your business, such as access to priority sector lending, government schemes, etc.
By ensuring your business meets the relevant investment and annual turnover limits, you can avail of these benefits and take your business to new heights.
Documents Required for Udyam Registration
According to the online Udyam Registration portal of the Ministry of Micro, Small and Medium Enterprises, to apply for Udyam registration, an entrepreneur must have some basic document details ready. These details include:
1. PAN card number
2. Aadhaar number
3. GST number.
Depending on the type of firm the MSME is registered as the Aadhaar card number will vary.
- The Aadhaar card number will belong to the proprietor of an ownership firm.
- For a partnership firm, the managing partner shall give their Aadhaar number.
- For a HUF, it will be the Aadhaar number of the Karta.
- If the MSME is registered as an LLP, company, cooperative society, or trust, the authorised agent who holds the Aadhaar card number will be designated.
Remember that the GST number is not mandatory for all enterprises applying for Udyam registration. Only those enterprises that require GST registration under the GST law must provide their GST number.
It is very important to note that the Udyam Registration is based on the concept of ‘self-declaration’. This means that the registration process does not require the applicant to upload any documents. The specific Aadhaar card number required will depend on the type of firm registered, while the GST number is only mandatory for certain enterprises.
The Ministry will access all extra necessary information from the government databases based on the PAN and GST number. The Udyam online system is fully integrated with the Income tax and GSTIN systems.
Misrepresentation or suppression of information on the part of the entrepreneur at the time of Udyam registration will lead to a penalty as specified by section 27 of the Micro, Small and Medium Enterprises Development Act, 2006.
By ensuring that these basic details are ready, entrepreneurs can organise the process of applying for Udyam registration and move forward with establishing their MSME.
Udyam Registration Certificate Process
Here are the steps you need to follow to apply for an MSME Udyam Registration Certificate:
STEP 1: Go to the official website of Udyam Registration at udyamregistration.gov.in and register as a new user. Ensure you have your Adhar and PAN cards, as the website requires their numbers for account verification.
STEP 2: Validate your card numbers by entering the OTP sent to your phone number after you fill in your Adhar and PAN details.
STEP 3: Choose the type of business organisation or enterprise your business has, and provide the Business PAN number that you have attached to your business accounts.
STEP 4: Fill in the personal details section of the form, along with the details of the business or industry you are running. To avoid errors that may lead to the rejection of your form, thoroughly double-check everything.
STEP 5: After completing the form, the website will verify your phone number or email by sending a final OTP. Then, your form will be sent for verification by the agency. The verification process may be time-consuming, so be patient.
STEP 6: Once the authorities verify your form and are satisfied, they will notify you and issue your MSME Udyam Certificate. You can then download the Udyam registration certificate from the website.
Important steps to keep a note of:
Here are the important steps entrepreneurs should remember before applying for Udyam Registration:
- Apply through the Udyam Registration Portal, a 100% online process.
- After successful registration, the portal will issue a permanent identification number and an e-certificate known as the “Udyam Registration Number” and the “Udyam Registration Certificate”.
- To qualify for MSME registration, entrepreneurs must meet specific criteria that classify them as medium, small, or micro-enterprise.
- Entrepreneurs must follow the steps carefully to obtain their Udyam Registration, which is important for business operations.
Points to Keep in Mind Before Applying for Udyam Registration as an Entrepreneur
- The MSME online system is entirely combined with the income tax and GSTIN systems, making the turnover and the amount auto-populated from Income Tax.
- Starting from 01-04-2021, PAN and GST numbers are compulsory. Individuals registered in EM-2 or UAM registration need to register themselves.
- You should file only one registration with Udyam Registration. You must include manufacturing and service details in one registration.
- The Udyam Registration process mandates providing the Aadhaar number. The system will take the Aadhaar number of the proprietor, managing partner, or Karta based on the type of firm.
- The duly registered Udyam enterprise with PAN can fill up any lack of information in previous years when the enterprise did not have a PAN through self-declaration.
- An intentional falsehood and attempt to suppress the self-declared facts and figures in Udyam registration or the process of change in registration particulars may result in a penalty as specified under Section 27 of the Act.
It will be Rs.1000 for the first conviction and more than Rs.1000 but may extend to Rs.10000 for the following convictions.
- The government provides free registration at the GEM portal, the government E-marketplace, which facilitates online access to consumer goods and services needed by various government departments, organisations, and PSUs.
- The government also offers free registration at the TReDs portal, an electronic platform that facilitates the financing and discounting of trade dues of MSMEs through multiple financiers, due from corporates, government departments, and PSUs.
By keeping these points in mind, entrepreneurs can ensure they have all the necessary information and documentation to obtain their Udyam Registration and take advantage of the government’s support and initiatives for MSMEs.
How can MSMEs calculate their registration process while applying for the Udyam portal?
- Investment in machinery, plant, or equipment determines an enterprise’s standing as a micro, small, or medium enterprise (MSME).
- The estimation and calculation of machinery, plant, or equipment investment further relate to the Income Tax Return (ITR) of the past year relevant under the Income Tax Act of 1961.
- New enterprises without previous ITRs must rely on a self-declaration of the enterprise’s promoter to determine their investment. However, this relaxation ends after 31st March of each financial year when they file their first ITR.
- When calculating the investment of machinery, plant, or equipment, it is crucial to exclude the cost of research and development, pollution control, industrial safety devices, etc.
- The turnover of an enterprise is another essential factor in determining its classification as an MSME.
- Information on import and export turnover links to the Central Goods and Services (CGST) Act or the Income Tax Act and GSTIN.
- Any enterprise (micro, small, or medium) excludes the export of goods and services during turnover calculation for classification.
- Enterprises without a PAN must make a self-declaration of their turnover up to 31st March of the particular year. However, GSTIN and PAN will be mandatory after the financial year.
- A notification may specify the terms related to the calculation of investment and turnover to the enterprises.
- By following these guidelines, MSMEs can register with the Udyam Portal and take advantage of various government schemes and benefits for their growth and development.
MSME (Udyam) Post-Registration
After successfully registering a micro business through the MSME (Udyam) portal, the portal will be recognised as an “Udyam” The registration procedure will further allocate a unique identification number, known as the “Udyam Registration Number,” to the enterprise for permanent identification.
The online generation of an electronic certificate, the “Udyam Registration Certificate,” will occur. The certificate will feature a dynamic QR code, allowing the user to scan and access the enterprise’s details on the Udyam Portal, enabling swift and easy verification of the enterprise’s registration status.
Documents Required for Re-Registration Process
All you need is your Udyog Aadhaar Number (UAN) issued by the government, Aadhaar Card, PAN Card, and GSTIN of your organisation. Don’t forget to ensure that your registered mobile number and email ID are active because you will receive an OTP on them to complete the Udyam registration process for a business loan online. It’s hassle-free.
How To Migrate From Your Old Udyog Aaadhar to the New Udyam Registration?
Are you a small business owner in India looking to migrate from the old Udyog Aadhaar registration to the new straightforward process?
Follow these simple steps to complete the registration process:
Step 1: Visit the Udyam Registration website: To begin the process, go to udyamregistration.gov.in and click on the link provided. The website will display its home page.
Step 2: Select the “For those already having registration as UAM” option: On the home page, you will see different options based on your previous registration status with Udyog Aadhar. Select the “For those already registered as UAM” option if you have previously registered.
Step 3: Enter your Udyog Aadhar number (UAN): Once you have selected the option, a new page will appear where you must enter your UAN. Make sure you enter it correctly to avoid any errors.
Step 4: Verify your account: Once you enter your UAN, the system will present you with two options to verify your account- through your previously provided mobile number or email address. Choose the more convenient option for you and a one-time password will be sent to your selected option to verify your identity.
Step 5: Wait for verification: After entering the OTP, the system will verify all the information you have provided. If your Udyog Aadhar is successfully authenticated and no issues are found, the system will send you a message to revisit after a couple of days to complete the process.
Step 6: Receive your Udyam Certificate: Once complete, you will receive your Udyam Aadhar Certificate, making your company eligible for associated benefits.
If you verify your account using your pre-registered email address, the system will send a one-time password to your inbox. This verification step serves the purpose of accurately identifying your account and ensuring your information’s security. By taking this precaution, the system can prevent unauthorised access to your account and safeguard your privacy.
With your Udyam Aadhar Certificate, your business can access several benefits, including collateral-free loans, subsidies, and other government schemes. It is a straightforward process you can attain in a few easy steps. The registration portal is user-friendly and guides you through the process with ease.
Why is it Necessary To Re-Register?
The importance of re-registering your MSME on the Udyam portal cannot be put focused on enough. The new process of MSME registration involves a crucial structural change that categorises the MSMEs based on their types: micro, small, and medium enterprises. This categorisation determines the benefits offered by the government.
Furthermore, unlike the previous Udyog Aadhaar registration process, the new system requires applicants to furnish investment and turnover details for accurate classification. The PAN and GSTIN details are also necessary for categorising the firm.
Re-registration ensures transparency in public accounts and enables your MSME to avail of the benefits provided by the government. So, don’t wait; re-register your MSME on the Udyam portal today!
What is the typical duration to receive the Udyam Certificate after application?
Waiting for your Udyam Registration Certificate after applying can be an anxious time, but typically, it only takes about four to five days to receive it. Once the process is complete, an email notification will be sent to your enterprise with the registration number and the eagerly anticipated e-certificate.
However, it’s important to note that occasionally the process can take up to 15 days to finalise. So, while the wait may feel like forever, rest assured that the Udyam Certificate is well worth it in the end!
How you can print your Udyog Aadhaar Certificate online
If you want to print your Udyog Aadhar/MSME certificate for an online business loan, you can follow these steps:
- Visit the website provided.
- Enter your name as mentioned in your Aadhar card issued by UIDAI.
- Input your mobile number and email ID; the certificate will be sent to this email address.
- Use your UAM number to print the Udyog Aadhar/MSME certificate.
- Click on the “SUBMIT APPLICATION” button and wait for the application to finish processing.
- Your certificate will reach your registered email ID in 1-2 business days.
Why does one need Udyam Registration?
Every MSME owner knows that government benefits can be a big factor in growing their business. The Udyog Aadhaar Registration has provided low-interest loans, funding, and other perks that have helped many companies succeed.
However, the Ministry of Micro, Small, and Medium Enterprises has introduced the new and improved Udyam Aadhaar system, and it’s time to make the switch to continue to avail of these benefits.
The deadline for migration is approaching fast. After 31st March 2022, the Udyog Aadhaar registration will no longer be valid, and companies will miss out on government support if they fail to upgrade to Udyam Aadhaar.
The new system promises to be more efficient and organised, ensuring that MSMEs receive the necessary support to thrive in today’s competitive market.
Ensure that your company doesn’t miss out on these benefits. Now shift to Udyam Aadhaar and unlock a world of opportunities for your MSME. Take your business to the next level and ensure you have all the support you need to succeed.
Obtain A MSME Business Loan From Flexiloans
Securing financing for your small business in India can be an important challenge. However, online lending platforms like FlexiLoans have made the process much more accessible, convenient, and simple. FlexiLoans is a technology-powered online business loan platform that provides easy access to loans with just a click.
Unlike traditional banks, FlexiLoans uses a technology-driven approach that organises the business loan application process, making it faster and more fitting for borrowers like you. This approach enables you to apply for MSME loans and receive decisions in real time, which is ideal if you need fast access to funds.
One of the key benefits of using FlexiLoans is that it provides tension-free business loans without collateral. Traditional banks often require collateral, which can be a significant barrier for small business owners to access financing.
However, with FlexiLoans, you can apply for unsecured business loans, eliminating the need for collateral. This makes it an ideal option for businesses that are just starting and may not have the assets to secure an MSME loan.
Another benefit of using FlexiLoans is that it has minimal validation processes. Traditional banks often require too much paperwork, which can be a big barrier for small business owners. FlexiLoans smooths the validation process, making applying for business loans easier without paperwork.
FlexiLoans uses proprietary technology to ease friction points in the loan application process. This technology enables the platform to evaluate how reliable you are quickly and accurately, reducing the time it takes to process your Business loan application.
This approach enables you to receive financing more quickly, which can be critical in today’s fast-paced business environment. To apply for an MSME loan visit, you must visit our company’s website and fill out a simple online business loan application form.
Overall, FlexiLoans is an excellent option for small businesses in India seeking financing, with its technology-driven approach, tension-free Business loans without collateral, minimal documentation processes, and proprietary technology to ease friction points in the MSME loan application process. For similar insights like these, check out blogs here.
Q.1 Will there be a physical copy of the MSME Certificate be issued?
Ans: No, the government promotes paperless work and does not issue physical copies of MSME registration Certificates in the interest of the environment.
Q.2 What is the fee for Udyam Registration through msmeregistration.org?
Ans: The experts at msmeregistration.org charge Rs 1999 for Udyam Registration.
Q.3 Do I have to register for Udyam?
Ans: Yes, Udyam registration is mandatory in India.
Q.4 How long is the Udyam Registration Certificate valid?
Ans: The Udyam Registration Certificate may remain valid until the enterprise of the micro business exists and does not require renewal. However, Enterprises must update their information on the new portal, including PAN and GST, before 31st March 2021.
Q.5 What does MSME stand for?
Ans: MSME stands for Micro, Small, and Medium Enterprises.
Q.6 Can traders register for Udyam?
Ans: Absolutely. Even traders possess the flexibility of registration for Udyam and obtain all of the credit facilities for their business or entrepreneurial requirements from various Banks and financial institutions.
Q.7 How can traders register for Udyam?
Ans: Traders can apply for Udyam on the official website and benefit from Primary Sector Lending under the MSME schemes.
Q.8 How can I check the status of my MSME registration?
Ans: You can check your MSME status from the MSME registration portal.
Q.9 Is Udyog Aadhar still valid?
Ans: The Udyog Aadhar process has been replaced with Udyam. Per the Ministry of Micro, Small, and Medium Enterprises notice, the Udyog Aadhar will be valid until December 2021.
Q.10 Can one Aadhar card have multiple Udyam registrations?
Ans: No, one Aadhar card cannot have multiple Udyam registrations. All the branches and activities related to the business must be stated under a single Udyam registration.
Q.11 How can I cancel my Udyam registration online?
Ans: To cancel your Udyam registration and UAM certificate, visit the cancel Udyam registration portal and enter your details, including your name, mobile number, email ID, Aadhar number, UAM number, and the name of your business. Select the type of cancellation as per your requirement.
Q.12 How can I update my Udyam certificate?
Ans: Visit https://udyogadharcertificate.in/update-udyam-certificate.php to update your Udyam registration certificate online by providing your existing UAM certificate and all your details as mentioned in Aadhar, along with your business and bank details.
Q.13 How can I print my Udyog Aadhar/MSME certificate online?
Ans: To print your Udyog Aadhar/MSME certificate online, visit the official website and enter your name, mobile number, email ID, and UAM number. Click on SUBMIT APPLICATION, and the certificate will reach you to your registered email ID in 1-2 business days.
Q.14 What criteria or factors classify enterprises as Micro, Small, and Medium Enterprises?
Ans: The categorisation depends very much on the investment and turnover, with a micro-enterprise having a plant and machinery investment of up to 1 crore and a turnover of up to 5 crores, a small enterprise having a plant and machinery investment of up to 10 crores and a turnover of up to 50 crores, and a medium enterprise having a plant and machinery investment of up to 50 crores and a turnover of up to 250 crores.
Q.15 Is it mandatory to have PAN and GSTIN for UDYAM Registration?
Ans: The Ministry granted a relaxation for UDYAM registration until 31/03/2021 to entities without PAN or GSTIN. They could register on a self-declaration basis, but PAN and GSTIN are mandatory after the mentioned date.