What Is Udyam Registration?

Udyam Registration also referred to as MSME registration is the process of registering your business under the Micro, Small, and Medium Enterprises (MSME) category with the Indian Government. It was introduced on July 1, 2020, replacing the earlier Udyog Aadhar Memorandum (UAM) system. The Udyam registration is carried out online through the Udyam Registration portal.

Obtaining a udyam registration in India is not mandatory, however, entrepreneurs can apply for MSME Udyam Registration online, and upon successful submission of the application form, the enterprise will be assigned a permanent Udyam Registration Number and will receive Udyam Registration Certificate This registration is essential for businesses to enjoy various perks such as government subsidies, low-interest loans, tax exemptions, and easier access to credit and so on.

Keep scrolling to find out more about MSME Registration, its eligibility, benefits, and how to apply for it.

Udyam Registration Benefits

The Udyam registration provides many benefits to business owners. Take a look!

Access to Government Schemes: Registered MSMEs are eligible to apply for government schemes such as the Credit Guarantee Fund Scheme which provides collateral-free loans from banks. 

Financial Assistance:  Due to MSME Registration India, businesses can get subsidies on loans, reduced interest rates, and various tax rebates. 

Priority Lending: Banks and financial institutions often give priority to MSMEs for lending, making it easier for these businesses to access credit facilities. 

Market Opportunities: Many government tenders are exclusively open to MSMEs that give them a chance to expand their market presence. 

Subsidy on Trademark Registration: MSME-registered businesses can avail a subsidy of up to 50% for trademark registration. 

Protection Against Delayed Payments: The MSME Development Act, 2006 provides protection against delayed payments by buyers. 

Quick Dispute Resolution: Udyam registered businesses benefit from faster resolution of disputes, saving business legal costs

Eligibility Criteria for Udyam Registration in India

Any business entity, including sole proprietorship, partnership, limited liability partnership (LLP), private limited companies, or any other business structure is eligible for Udyam registration. Additionally, both manufacturing and service sectors are eligible. However, the business must fall within the specified investment and turnover limits as per the MSME Classification. Here is a breakdown of the eligibility criteria: 

1. Micro Enterprise

• Investment: Up to ₹1 Crore in plant and machinery. 
• Turnover: The annual turnover must not exceed ₹5 Crore

2. Small Enterprise

• Investment: Up to ₹10 Crore in plant and machinery. 
• Turnover: The annual turnover must not exceed ₹50 Crore. 

3. Medium enterprise

• Investment: Up to ₹10 Crore in plant and machinery. 
• Turnover: The annual turnover must not exceed ₹250 Crore. 

Businesses that meet the above-mentioned criteria can apply for UDYAM registration and get udyam registration certificate to avail the benefits provided by the Indian Government. 

For a better understanding on the eligibility of Udyam registration, refer to the table below:

How to apply for Udyam Registration?

The registration process for MSMEs can be completed online through the official Udyam Registration portal. The Udyam portal is a government platform that simplifies MSME registration and offers various benefits to businesses. The best part? There is no fee charged for MSME registration. 

Step 1: Visit The Udyam Registration Portal

Go to the official Udyam Registration Portal. On the homepage, you will see two options: “For New Entrepreneurs” and “For Those With EM-II”.

Step 2: Choose the Relevant Option

New Entrepreneurs: If you are registering for the first time, click on the “For New Entrepreneurs who are not registered yet as MSME” option. 
Existing Entrepreneurs: If you already have UAM (Udyog Aadhaar Memorandum), click on the “For those having registration as EM-II or UAM” and update your registration. 

Step 3: PAN Card Verification

MSME registration requires the PAN Card of the business owner or partner. Enter the PAN number and validate it through OTP (One-Time Password) sent to your linked mobile number. For businesses like proprietorship, the PAN Card of the owner is required. On the other hand, for partnerships or LLPs, the PAN of the managing partners or directors will be needed. 

Step 4: Fill in Business Details

The next step after verification of PAN is to enter the details of your business. Start with the legal name of your business. Choose your business structure (proprietorship, partnership, LLP, private company, etc.). Though not mandatory for MSME registration, enter your GSTIN if applicable.

Step 5:  Investment and Turnover Details

Provide details of your business’s investment in plant and machinery or equipment as well as your annual turnover. This helps in determining whether your business falls under Micro, Small, and Medium Enterprises. 

Step 6: Verify and Submit the Application

Fill out the Udyam registration application form. The information provided will be in self-declaration format. After verifying the details, click on the “Submit and Get Final OTP” button. 

Step 7: Receive Udyam Registration Certificate

Once your application is successfully submitted, the system will generate the Udyam Registration Number and a Udyam e-registration certificate will be sent to your registered email address. 

How To Check Udyam Registration Status?

Applicants can easily check the status of their Udyam registration application through the Udyam Registration portal. 

Here is a Step-by-Step Guide to Check Udyam Registration Status online: 

• Visit the official Udyam registration portal.
• On the homepage, you will find the option ‘Print/Verify’.
• Select ‘Verify Udyam Registration’ and enter the ‘Reference Number’. 
• Fill in the captcha code and click on the ‘Verify’ button. 
• The portal will display your registration status.