Published on Nov 7, 2023Updated on Nov 23, 2023
Today, the Indian government classifies any micro, small, or medium enterprise (MSMEs) as 'Udyam.' MSMEs are involved in manufacturing, trading, processing, and service sectors. With a 30% contribution to India's GDP, it was only natural for the Government of India to enhance its growth and productivity. This is where an Udyam registration certificate can give the much-needed impetus for developing MSMEs.
To propel the growth of the MSME sector in the Indian economy, the government has introduced the Udyam registration certificate. This legal paperwork recognises and certifies a business as a micro, small, or medium enterprise (MSME). Post 1 July 2020, Udyam registration has become mandatory for all MSMEs.
It includes essential details like the enterprise's name, address, unique Udyam Registration Number, and issuance date.
The features that make Udyam registration an attractive option for MSMEs include:
An Udyam registration benefits MSMEs in several ways as it allows to:
The Udyam registration certificate is accessible to any business entity (partnership form, proprietorship, HUF, private limited company, co-operatives, one-person company, limited company, limited liability partnership, or associated individuals) that complies with the established turnover and machinery/equipment investment criteria for MSMEs in India.
Type of Enterprise
Up to INR 1 crore
Less than or equal to INR 5 crores
Up to INR 10 crores
Less than or equal to INR 50 crores
Up to INR 50 crores
Less than or equal to INR 250 crores
The documents essential for the Udyam registration process include the following:
These documents may vary slightly depending on individual circumstances. It is advisable to exercise proper due diligence before going ahead with the registration.
Step 1 - Start by visiting the official Udyam registration website, accessible by clicking the provided link.
Step 2 - Select the 'New Registration' tab on the homepage to access the Udyam registration online form.
Step 3 - Add your Aadhaar PAN card numbers. Verify them by entering the OTP sent to your registered mobile number.
Step 4 - Choose the appropriate business or organisation type and enter the PAN number associated with your business accounts.
Step 5 - Complete all the required fields in the form, ensuring no errors.
Step 6 - Submit and confirm your Udyam registration by entering the OTP received on your mobile number.
Step 7 - Upon successful registration, you will receive a 'Thank You' message via SMS and email, along with your Udyam registration number.
Step 8 - Finally, download and print your Udyam Registration Certificate for your records.
Availing the Udyam certificate for your business opens the door to multiple benefits and opportunities. Apart from government recognition, this certificate allows an enterprise to enjoy credit, subsidies, and tax benefits and access better resources.
Governments prefer MSME Udyam registration-compliant enterprises over others to conduct business with. Businesses have an advantage in securing loans, experience better compliance, and enjoy legal protection under the MSME Development Act, 2006. Moreover, it enables better market access, fosters credibility, and opens doors to technical and marketing support. This recognition boosts competitiveness and partnerships. The Udyam Certificate is a cornerstone for MSMEs, supporting their growth, competitiveness, and financial stability in the Indian market.
You can use your Udyam Registration Certificate to get an MSME business loan. Many banks and financial institutions offer MSME loans to businesses with a Udyam Registration Certificate.
With lower interest rates, flexible repayment terms, longer loan terms, and security, Udyam-registered companies can easily avail of a business loan and boost their long-term growth.
If you are a new MSME looking to register on the Udyam portal, you can begin with the steps as follows:
Downloading the Udyam certificate from the official website is a simple and hassle-free process:
With a streamlined online application process, businesses can apply for an Udyam certificate and, in turn, access a world of benefits, financial support, and government-backed initiatives. This digital transformation simplifies the registration process and brings in a new era of growth and opportunity. Take the next step and apply for our business loans today to fuel your business expansion and development.
The best part about Udyam registration is that the application process is paperless and free. It requires only self-declaration.
Yes, traders and manufacturing and service providers are eligible for this registration.
Having PAN and GSTIN details can benefit MSMEs in availing of different benefits and services offered by the government.
An Udyam certificate serves various purposes, such as –
Any micro, small, or medium enterprise (MSME) is qualified for Udyog Aadhar registration.
Being an online process, the applicant will receive the Udyam certificate immediately after submitting details and confirming their registration.
Log into the Udyam registration portal. Click on 'Print Udyam Certificate' and follow the instructions.
MSME or Udyam registration means the same. These terms are often used interchangeably.
The Government of India does not charge any fees for registration of your MSME. The online registration process is entirely free of any expenses.
Yes, you can cancel your Udyam certificate. To do so, log in to the Udyam Portal and click the 'Update Details' option. You must provide your Udyam registration number and registered contact details for further steps. It takes a maximum of 2-3 months for cancellation.
Entities that do not fall under the category of MSMEs are not eligible for Udyam certification. These include -
The government issues no separate hard copy of the Udyam certificate. You can take a printout of the digital copy and use it per your needs.
Though not compulsory, an Udyam registration can help MSMEs avail a variety of subsidies, benefits, and rebates.
To aid the growth and development of MSMEs in the market, Udyam certification was introduced to categorise them and provide benefits.
To do so, visit the Udyam registration portal and fill in your details, such as your PAN, Aadhar number, business details, contact information, etc. Once done, the registration is completed as soon as you click 'submit.'
Any applicant who is the owner, partner, or an authorised representative of the enterprise (MSME)can apply for Udyam registration.
*Terms and conditions apply
**Subject to foreclosure charges. Terms and conditions applicable.
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