You are currently viewing All About Udyam Registration (With FAQs)

All About Udyam Registration (With FAQs)

Small businesses play a key role in improving the economy of any country. To encourage new and existing businesses, the Government of India has launched a number of schemes to help small businesses survive and grow


Image Source:

Table of Contents

What is Udyam Registration?

Udyam Registration is a new system introduced by the Ministry of MSME and the Government of India to replace the old Udyog-Aadhaar system. Udyog Aadhaar is your company’s 12-digit identification number. It was called Aadhaar because it is an identification number similar to the one on the Aadhaar card.

In order to digitize India and make the process more streamlined, the Udyam Registration Portal is a new revamp initiated by the Ministry of Small and Medium Enterprises to facilitate the growth of MSMEs in India and to provide MSMEs with the necessary support. It is a technology-first system. board.

Udyam registration, also known as MSME registration, consists of regulatory approval provided with a certificate of approval and a unique number. This is essential if you are a small to medium-sized business or want to prove your business is legal and operating.

For micro or small businesses, Udyam registration is done under the Ministry of MSME, GOI.

While using the term MSME registration/Udyog Aadhaar, it belongs to the old registration system where the UAM number was generated for verification. Starting July 1, 2020, MSME Registry/Udyog Aadhaar has been migrated to a new system called Udyam Registration. Migrating to Udyam registration is mandatory even if you already have MSME registration.

It usually takes about 1-2 weeks to generate the Udyam registration number and then the Udyam certificate.

Read below the article to understand the importance of Udyam Registration & how you can apply for it.

Key benefits of Udyam Registration:

The Udyam registration scheme was designed with several factors in mind. By choosing Udyam registration, MSMEs can expect to benefit in various ways. Some of the advantages are:

  • You can get collateral-unfastened loans for micro & small firms from banks under the credit guaranteed fund scheme.
  • Some objects had been earmarked to be manufactured most effective through small-scale companies
  • Once you get the MSME certificates in your microenterprise, it receives plenty less difficult to get licenses, registrations, and approvals for the same. It will accelerate the whole process by showing your MSME certificate.
  • You get unique attention for collaborating in global exchange fairs, exhibitions, and buyer-dealer meets. You also can preserve global seminars and meetings which can be withinside the hobby of MSME quarter
  • When you’ve got MSME registration, you get the following things at a subsidized price:
  • Barcode registration,
  • NSIC overall performance and credit score ratings,
  • Subsidy for Industrial Promotion (IPS),
  • ISO certification,
  • Power bill, and
  • Patent registration
  • The interest fee charged for MSME registered enterprises by banks is much lower compared to the normal interest rate.
  • CLCSS (Credit Linked Capital Subsidy Scheme) is introduced to promote technological growth among MSMEs. It provides a 15% subsidy on capital up to 15 Lakhs for the purchasing of machinery.
  • The ministry of MSME offers the following benefits to MSMEs on applying for a tender issued by the government of India:
  • Tender units may be issued free of cost.
  • They are exempted from paying the earnest money.
  • Security deposit is waived as much as a sure financial limit.

To avail yourself of the advantage of all these beneficial programs, you must complete your MSME registration as quickly as possible.

Types of MSME Registrations

Provisional MSME Registration

This applies to entities that are not yet functional. Pre-registration allows MSMEs to:

  • Acquisition of facilities such as housing and land
  • Obtain critical approvals and NOCs
  • Obtain approval from regulatory bodies such as environmental protection agencies and labor law
  • Focus area lending receives term loans and working capital from financial institutions and banks.
  • A PRC (Provisional Certificate of Registration) is issued to new businesses without an on-site request and is valid for 5 years.

Permanent MSME Registration

Permanent registration must meet the following requirements:

  • The unit has the required legal and regulatory approvals
  • The device does not violate any regulations or restrictions
  • Plant and machinery values ​​within the unit do not exceed prescribed limits
  • You must provide evidence that your company is not owned, affiliated, or controlled by another industry.

Documents Required for Udyam Registration

The government of India requires all emerging market companies registered under EM Part II or UAM to re-register at the Udyam registration portal from 1st July 2020. Businesses registered before June 30, 2020, will be reclassified in light of the new notice. This gives the MSME a unique identification number called Udyog Aadhaar. Udyog Aadhaar was introduced in September 2015. For Udyog Aadhaar registration, MSME can now be registered under Udyam registration. This gives your company a unique 12-digit identification number. However, like any other important documents, Udyam requires you to submit some important documents proving that you are an Indian citizen. Here’s what you need:

  • PAN No. of the Enterprise
  • GST certificate
  • Aadhar Card Copy
  • Caste certificate of the owner
  • Contact Mobile number
  • Contact Email address
  • Date of commencement of business
  • Bank A/c No & IFSC code (or copy of Bank Passbook)
  • Number of employees in the enterprise (with male & female ratio)
  • Nature of business
  • And lastly, the latest audited financial statements.

Steps to Register under Udyam Registration as an MSME

If you haven’t registered as MSME in the Udyam registration, do the same according to the following steps:

  • Access the Udyam registration portal
  • Next, select the option for “new entrepreneurs who are not registered yet as MSME or for entrepreneurs with EM-II”.
  • Please enter the AADHAAR number & name
  • The next step is to Click on the “Validate & generate OTP’ button.
  • A one-time password arrives at the registered mobile phone number
  • Enter the OTP, check the AADHAAR number, and continue the Udyam registration process.
  • The next step is “PAN verification”. Select the Type of Organisation from the drop-down menu & feed your PAN details.
  • Validate your PAN by selecting the check box and PAN Validate button.
  • Enter the remaining details in the form. Next, click “Submit and get the final OTP”.
  • Once all the information entered is confirmed, the electronic registration document is sent to the registered email address, which completes the registration process.

Important steps to note while applying for an Udyam Registration:

  • You must apply 100% online through the Udyam registration portal.
  • A permanent identification number and digital certificate will be issued upon successful registration
  • These are called “Udyam registration number” and “Udyam registration certificate” respectively.
  • To qualify for MSME registration, there are a set of criteria that must be met in order to be classified as medium, small, or micro-enterprises.

Further Highlights of Udyam Registration:

  • The MSME registration process is completely online, paperless, and self-certified. No need to upload documents or evidence to register MSME.
  • An Aadhaar number is required for registration.
  • After registration, you will be given a registration number.
  • After completing the registration process, you will be issued a Udyam registration certificate.
  • This certificate contains a dynamic QR code to access the portal’s web pages and company details.
  • No new registration required
  • Information on investments and sales of PAN and GST-linked companies is automatically pulled from the respective government databases
  • The MSME sector’s online system will be fully integrated with the Income Tax and GSTIN system.
  • Those who have an EM-II or UAM registration, or any other registration issued by an agency of the Ministry of MSME, must also re-register.
  • No company can submit more than one of its Udyam registrations. However, any number of activities including manufacturing and/or services may be specified or added to the registration
  • Government-promoted mechanisms on behalf of the Champions Control Room and DIC’s Single Window System will assist people through this process.
  • The registration process is completely free. There are no costs or fees for this.

The ministry has expressed confidence that the process will be very easy and seamless for business owners. There are examples of ease of doing business not only in India but also internationally. Reduce transaction time and costs. Entrepreneurs and companies can focus on their actual work and be globally competitive.


Similar to Aadhaar card, voter card or driver’s license, Udyam registration certificate can also be an important document for anyone concerned with MSME. Now that you understand the benefits of Udyam registration, please consider applying for Udyam registration.

FAQs: Frequently Asked Questions

What is Udyam Registration?

Udyam registration is a new MSME registration process launched by the Ministry of Small and Medium Enterprises on July 1, 2020.

Is Udyam Registration Mandatory?

Yes, it is mandatory in India.

What are Udyam Registration Benefits?

  • Benefits in Tax
  • Easy Settlements of Pending Payments
  • 50% discount on Patent & Trademark fees.
  • Lesser Interest Rates For Bank Overdraft(OD)
  • Eligible for Mudra Loan Scheme
  • Apply to Government Tenders Easily

What is the difference between Udyam and Udyog Aadhaar?

Udyog Aadhaar is the name of the Micro Small Medium Enterprise (MSME) registration process, commonly referred to as Udyog Aadhaar Registration. However, this process has now been replaced by Udyam registration.

How to print Udyam E-certificate?

After successfully completing the registration process, you can print your Udyam registration certificate online.

How to generate a one-time password (OTP) for Udyam?

Enter your 19-digit Udyam registration number (for example, UDYAM-XX-00-0000000). Enter the mobile phone you entered in the Udyam application. Select an option for OTP (One Time Password). Click the “Verify and Generate OTP” button to get OTP for the selected option. Enter the OTP and click the Validate and Print OTP button.

What is the difference between MSME and Udyog Aadhaar?

Note that the registrations for MSME, Udyog Aadhaar, and Udyam are the same, only the names have changed. Udyam registration, which replaces the old Udyog Aadhaar. Udyam registration is the latest registration process.

What is MSME Udyam registration certificate?

MSME Udyam Registration Certificate is one of the most important certificates if you own a company or a company that has not yet fully developed into a large company.

What is the CLCSS scheme for MSME?

What is the CLCSS scheme? The Micro, Small and Medium Enterprises Authority (M/o MSME) has launched a Credit-Linked Capital Grant Scheme (a full form of CLCSS) and Created a subsidy program called CLCSS for upgradation of technology & machinery.

What does the CLCSS cover?

It also includes the introduction of upgraded packaging technology, anti-pollution measures, energy-saving equipment, internal testing, and online quality control. The Credit Linked Capital Subsidy Scheme (CLCSS) was introduced on October 1, 2000.

Leave a Reply