Udyam Registration simplifies MSME registration by reducing paperwork and making the process entirely online. Entrepreneurs, including sole proprietors, partnerships, and companies, can apply. This system is linked with tax databases, ensuring a smooth experience. With Udam Registration, businesses gain access to subsidies, easy loans, and government procurement platforms, helping them grow efficiently.
The Government of India has replaced Udyog Aadhaar with Udyam Registration to make it easier for Micro, Small, and Medium Enterprises (MSMEs) to register. This hassle-free, digital system provides permanent registration and access to various government benefits.
Who Is Eligible To Apply For Udyam Registration?
- Individuals: proprietorships (companies owned and run by a single person).
- Partnerships: Businesses co-owned and managed by two or more people.
- Companies: Registered entities, including Limited Liability Partnerships (LLPs).
- Hindu Undivided Families (HUFs): Family businesses governed by Hindu laws.
- Persons’ Associations: Any collection of persons who conduct business together.
- Cooperative Societies: These are registered cooperative societies.
- Producer Companies: Businesses established by producers.
- One-Person Companies (OPCs): Those that have only one member.
- Any other undertaking: Any business organisation that fits the MSME criteria.
Benefits of Udyam Registration
Udyam registration for Micro, Small, and Medium Enterprises (MSMEs) offers several benefits, including access to government schemes, preferential treatment in government procurement, and easier access to loans and credit with lower interest rates and collateral-free options.
Financial Benefits:
- Registered MSMEs: They have access to a variety of government initiatives and subsidies aimed at promoting business growth and development.
- Collateral-Free Loans: Udyam registration makes it easier for enterprises to get bank loans without having to put up collateral.
- Cheaper Interest Rates: Registered businesses can get credit at cheaper interest rates, making it easier to arrange financing.
- Interest on Delayed Payments: Registered MSMEs are legally entitled to interest on delayed payments from buyers, which can significantly improve cash flow management.
- Udyam registration offers MSMEs legal protection against late payments.
- Reimbursement of ISO Certification Fees: Registered MSMEs can request reimbursement for fees paid in obtaining ISO certification, encouraging businesses to pursue worldwide standards.
- Concessions on Utility Costs: Udyam-registered enterprises may be eligible for discounts on utility costs like electricity, water, and gas, which is very useful for manufacturing and other businesses.
- Discounts on Electricity Costs: Registered enterprises are awarded concession rates on different utility costs, such as electricity, water, and gas bills.
Business Enhancement:
- Enhanced Credibility: Udyam registration boosts business credibility, making it more appealing to customers, investors, and partners.
- Simplified Compliance: The registration streamlines regulatory compliance, reducing administrative tasks for businesses.
- Access to Tenders: Udyam-registered MSMEs are often given preference in government tenders and procurement processes.
- Facilitates International Trade: Special considerations are given to international trade, including easier access to export-related schemes and incentives.
- Tax Benefits: Registered MSMEs can avail themselves of tax exemptions, benefits, and deductions under certain direct and indirect tax laws.
Udyog Aadhaar Registration Process
To register for Udyam (formerly Udyog Aadhaar), visit the Udyam Registration website, enter your Aadhaar number and name, validate with OTP, and fill out the required details, including business information and PAN, for a free, udyam registration online registration.
Follow the steps below to complete your Udyog Registration:
- Go to the official Udyam Registration website.
- On the homepage, select the option for new entrepreneurs or those with EM-II. Enter your Aadhaar number and the name of the entrepreneur.
- Click on “Validate & Generate OTP”. An OTP will be sent to the mobile number linked to your Aadhaar.
- Enter OTP and Validate: Enter the OTP and click “Validate”.
- After successful verification, you will be redirected to a form. Fill in the details, including:
- Type of organization
- PAN number
- Whether you filed the previous year’s ITR and possess a GSTIN
- Business name
- Social category
- Address of the business location
- Date on which the business started
- Details of previous MSME registration (if applicable)
- Bank account details (account number and IFSC code)
- Major activity and NIC code
- Total number of employees
- Investment amount
- District Industry Center (DIC) details (if required)
- Carefully review the details and click “Submit”.
- You will receive an email notification with your registration number. The registration process is typically completed within 4-5 days, but may take longer in some cases.
Documents Needed for Udyam Registration
Unlike the old process, below are the documents required for Udyam Registration.
- Aadhaar Number (Owner’s/Partner’s/Director’s)
- Business Name & Type
- Bank Details & IFSC Code
- Main Business Activity (Manufacturing or Service)
- National Industrial Classification (NIC) Code
- Number of Employees
- District Industry Center (DIC) Details
- Date of Business Commencement
How to Print Your Udyam Registration Certificate
- Go to the official Udyam Registration Portal.
- On the portal’s main page, look for the “Print/Verify” option or a similar link.
- Select “Print Udyam Certificate” from the options.
- You will be prompted to enter the following information:
- Udyam Registration Number: Your 16-digit Udyam Registration Number.
- Mobile Number: The mobile number registered with your Udyam registration.
- Choose OTP Option: Select whether you want to receive the OTP on your mobile number or email.
- Click on “Validate & Generate OTP”.
- An OTP (One-Time Password) will be sent to your registered mobile number or email address.
- Enter the OTP and click on “Validate OTP and Login”.
- After a successful login, you will be able to view your Udyam Registration Certificate.
- Take a printout of the certificate.
Difference Between Udyog Aadhaar And Udyam Registration
| Feature | Udyog Aadhaar | Udyam Registration |
| Purpose | To provide MSMEs with a unique identification number to access government benefits. | To simplify and streamline MSME registration, making it more user-friendly. |
| Mode | Available online & offline. | 100% online & paperless. |
| Documents | Requires multiple documents (Aadhaar, business details, etc.). | Uses Aadhaar, PAN & GST data directly from government databases. |
| Validity | Must re-register under Udyam after June 2020. | Permanent registration; no renewal required. |
| Identification Number | 12-digit Udyog Aadhaar Number (UAN). | 16-digit Udyam Registration Number (URN). |
| Government Portal | Registered via https://udyogaadhaar.gov.in/ (no longer active for new registrations). | Registered via https://udyamregistration.gov. |
| Verification Process | Minimal verification relied on self-declared data. | Real-time PAN and GST verification; greater transparency and accuracy. |
| Classification Basis | Investment-based classification. | Classification based on investment + turnover (as per the revised MSME definition 2020). |
| Udyam Registration Fee | Free of cost. | Free of cost. |
| Government Benefits | Eligible for MSME schemes like subsidies, loans, exemptions, etc. | Eligible for all MSME schemes, including priority lending, subsidies, and protection against delayed payments. |
| Transition Status | Discontinued; holders must migrate to Udyam to retain benefits. | The current and valid registration system for MSMEs. |
Conclusion
Udyam Registration transforms MSMEs by offering a simple, paperless, and permanent registration process. It not only makes compliance easier, but it also improves access to government programs, financial services, and procurement. If you have not yet migrated to Udyog Aadhaar, now is the time to do so and take advantage of all the benefits that this new system provides.
FAQs
Is Udyog Aadhaar registration required for traders?
No, traders were not eligible for Udyog Aadhaar; only manufacturing and service enterprises could register.
Is there any fee for Udyog Aadhaar?
No, Udyog Aadhaar registration was completely free of cost.
Does Udyog Aadhaar have an expiry date?
Yes, Udyog Aadhaar is no longer valid; MSMEs must re-register under Udyam Registration.
Can I obtain a physical copy of the Udyog Aadhar Certificate?
Yes, you can download and print the certificate from the Udyog Aadhaar portal (now inactive for new registrations).
How to verify Udyog Aadhaar?
Verification is possible through the Udyog Aadhaar portal using the UAN, but now verification is done via the Udyam portal.
Who is not eligible for Udyam?
Large enterprises exceeding MSME investment and turnover limits are not eligible for Udyam Registration.
What is the new name of Udyog Aadhar?
Udyog Aadhaar has been replaced by Udyam Registration from July 1, 2020.
Can I have 2 UDYAM registrations?
No, one PAN card allows only one Udyam registration, covering all activities under a single registration.
