What is Udyam Registration?
Udyam Registration is the new, simplified MSME registration process launched by the Ministry of Micro, Small, and Medium Enterprises in July 2020. It replaces the earlier Udyog Aadhaar Memorandum (UAM). This fully online, paperless, and self-declaration-based system allows businesses to register as MSMEs and obtain a unique Udyam Registration Number (URN) and an e-certificate.
The primary purpose is to identify and support small businesses, enabling them to avail of various government schemes, subsidies, and financial assistance designed to boost their growth and contribution to the economy.
MSME Classification Criteria
Enterprises are classified as Micro, Small, or Medium based on their investment in Plant and Machinery or Equipment and their Annual Turnover:
| Type | Investment | 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 |
Benefits of Udyam Registration
- Collateral-Free Loans: Access to loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Subsidy on Patent Registration: Up to 50% subsidy on patent and trademark registration fees.
- Overdraft Interest Concession: 1% exemption on interest rates on bank overdrafts.
- Protection against Delayed Payments: Buyers are liable to pay compound interest if they fail to pay MSMEs within 45 days.
- Electricity Bill Concession: Eligible for concessions on electricity bills.
- ISO Certification Reimbursement: Reimbursement of charges for ISO certification.
- Government Tenders: Exclusive access to certain government tenders reserved for MSMEs.
Who Can Apply?
Any business entity engaged in manufacturing or service activities can apply, including:
- Proprietorships
- Hindu Undivided Family (HUF)
- Partnership Firms
- One Person Companies (OPC)
- Private Limited Companies
- Public Limited Companies
- Limited Liability Partnerships (LLP)
- Co-operative Societies
- Trusts & NGOs
Documents Required
The process is based on self-declaration, but you should have the following details ready:
- Aadhaar Number: Of the proprietor, partner, or director.
- PAN Card: Of the business entity and the authorized signatory.
- GSTIN: If applicable (mandatory for certain turnover limits).
- Bank Account Details: Account number and IFSC code.
- Business Details: Date of commencement, main activity, NIC code, number of employees.
- Investment & Turnover: Details of investment in plant/machinery and annual turnover.
Step-by-Step Registration Process
- Visit Portal: Go to the official Udyam Registration portal.
- Aadhaar Verification: Enter Aadhaar number and name. Validate via OTP sent to the mobile linked with Aadhaar.
- PAN Verification: Enter PAN details and validate. Some data will be auto-fetched from the Income Tax database.
- Fill Details: Complete the form with business address, bank details, activity type (Manufacturing/Service), and NIC codes.
- Investment & Turnover: Declare investment and turnover figures (often auto-filled from GST/IT data).
- Submit: Review and submit the application. You will receive a Udyam Registration Number (URN).
- Certificate: After verification (usually a few days), the Udyam Certificate is issued and can be downloaded online.
Check Status & Download Certificate
You can check the status or download your certificate anytime from the official portal using your URN and the mobile number linked to the application.
- Print Udyam Certificate: Use the "Print/Verify" option on the portal.
- Update Details: You can also update your information if there are changes in your business.
