Udyam Registration in India: Process, Fees, Time taken,
Documents, Benefits
Udyam Registration is a simple online process for micro, small, and
medium enterprises (MSMEs) to get recognition and benefits from the government. It has
replaced the Udyog Aadhaar registration system. MSMEs will register by providing basic
details such as Aadhaar and PAN numbers, business information, and bank account details. The
important benefits include easier access to credit, subsidies, exemptions under direct tax
laws, and preferences in government procurement. BizFoc helps the enterprise in promoting
ease of doing business and encouraging MSMEs to avail of various support schemes and
incentives.
As per latest reports on 15th March, 2024, the total number of registered enterprises on
Udyam and UAP crossed 4 crore, which is a major milestone for the formalization initiative
undertaken by the Ministry of Micro, Small and Medium Enterprises (MSME). The Ministry is
committed to facilitate the promotion and development of Micro, Small and Medium
Enterprises.
What is Udyam Registration?
Udyam Registration is a government registration process in India
specifically designed for micro, small, and medium enterprises (MSMEs). It replaced the
earlier system known as Udyog Aadhaar registration. The Ministry of MSME Government of
India, in the notification S.O.2119(E) dated 26.06.2020, with effect from 1st July 2020,
introduced the Udyam Registration in lieu of UAM. The Udyam Registration is based on the
composite criteria of investment and turnover for classification of Micro, Small and Medium
Enterprise for new enterprises as well as existing enterprises.
Any person who intends to establish a micro, small or medium enterprise may file Udyam
Registration online in the Udyam Registration portal, based on self-declaration with no
requirement to upload documents, papers, certificates or proof.
On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal)
will be assigned a permanent identity number to be known as “‘Udyam Registration Number”.
An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion
of the registration process.
Udyam Registration Number
The Udyam Registration Number (URN) is a unique identification number assigned to Micro,
Small, and Medium Enterprises (MSMEs) in India upon successful registration on the Udyam
Registration Portal. This number is issued by the Ministry of Micro, Small, and Medium
Enterprises and is a part of the Udyam Registration initiative, which aims to simplify
the process of registration for MSMEs and provide them with various benefits.
How to Obtain Udyam Registration Certificate?
The government in January this year had launched the Udyam Assist
Platform (UAP) – a formalisation project by the MSME ministry. The primary objective of UAP
is to bring a large number of such informal micro enterprises (IMEs) into the formal
economic fold with the help of designated agencies (DAs).
To obtain an Udyam Registration Certificate in India, which is
necessary for micro, small, and medium enterprises (MSMEs) to avail of various benefits and
schemes provided by the government, you can follow these steps:
- Visit the Udyam Registration Portal: Go to the official website
dedicated to Udyam Registration. The website was managed by the Ministry of Micro, Small
and Medium Enterprises (MSME), Government of India.
- Create an Account: If you are a new user, you need to create an account
on the Udyam Registration portal. This typically requires providing basic details such
as your Aadhaar number (for Indian citizens), PAN card details, and other
business-related information.
- Fill in the Registration Form: After creating an account, you need to
fill out the registration form with accurate details about your business. This includes
information such as the name of the enterprise, type of organization, location, bank
account details, etc.
- Upload Required Documents: You will need to upload certain documents
including Aadhaar card of the proprietor/partners/directors, PAN card, business address
proof, and other relevant certificates as per the requirements of the Udyam registration
process.
- Submit the Form: Once satisfied, submit the Udyam registration form.
- Pay the Registration Fee: Make sure to pay this fee through the online
payment options available on the portal.
- Receive Registration Certificate: After successful submission and
verification of your application, you will receive the Udyam Registration Certificate.
- Renewal and Updates: Udyam Registration needs to be renewed
periodically. Ensure you comply with any updates or changes in regulations regarding
MSMEs.
Udyam Registration Benefits for MSME
Udyam Registration offers several benefits to micro, small, and
medium enterprises (MSMEs) in India. Here are some benefits:
- Ease of Access to Credit: Registered MSMEs can avail of collateral-free
loans and credit facilities with lower interest rates under various government schemes
such as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Priority Sector Lending: Banks are required to lend a certain
percentage of their total lending to priority sectors, including MSMEs. Udyam
Registration helps MSMEs qualify for this priority sector lending.
- Subsidies on Patents and Trademarks: The government provides subsidies
for MSMEs that have acquired patents or trademarks. Udyam Registration allows MSMEs to
avail of these subsidies, which can significantly reduce the cost of intellectual
property rights protection.
- Preference in Government Tenders: MSMEs registered under Udyam are
eligible for various government schemes and tenders specifically reserved for them. This
preference gives them an advantage in competing for government contracts and procurement
orders.
- ISO Certification Reimbursement: MSMEs registered under Udyam can claim
reimbursement of expenses incurred for obtaining ISO certification. This encourages
MSMEs to adopt quality standards and enhance their competitiveness.
- Exemption Under Direct Tax Laws: MSMEs registered under Udyam may be
eligible for exemptions under various direct tax laws and regulations, promoting savings
and investment in business growth.
- Financial Assistance for Participation in Foreign Expos: MSMEs can
receive financial support for participating in international trade fairs and
exhibitions, facilitating business expansion into global markets.
Difference between MSME Registration and MSME Udyam Registration
MSME Udyam Registration is an updated and more structured version
of the earlier MSME Registration also known as Udyog Aadhaar Registration, emphasizing
transparency, accuracy, and compliance with specific documentation requirements. It ensures
that MSMEs receive the benefits and support they are entitled to under various government
schemes while maintaining data integrity and reliability. The MSME Udyam registration is
facilitated through the government portal known as the Udyam portal. The entire process of
MSME registration is conducted online and eligible entities can conveniently apply for it on
the Udyam registration portal.
How to Download Udyam Registration Certificate?
To download the Udyam Registration Certificate in India, follow
these steps:
- Visit the Udyam Registration Portal: Go to the official Udyam
Registration portal managed by the Ministry of Micro, Small and Medium Enterprises
(MSME), Government of India. The URL for the portal is https://udyamregistration.gov.in.
- Login into your account: Log in to your account on the Udyam
Registration portal.
- Check Registration: Find Udyam Registration details within your
account. The information such as your Udyam Registration Number (URN), date of
registration, and other relevant details.
- Download the Certificate: Download or view/print your Udyam
Registration Certificate. Click on this option to generate the certificate.
Documents required for Udyam Registration
For Udyam Registration process for micro, small, and medium
enterprises (MSMEs) in India, the required documents are:
- Aadhaar Card of the Proprietor/Partners/Directors
- PAN Card of the Proprietor/Partners/Directors
- Business Address Proof
- Name and Type of Enterprise
- Date of Commencement of Business
- Bank Account Details
- Classifications of Enterprise
- Investment in Plant and Machinery or Equipment
- Annual Turnover
- GSTIN (Goods and Services Tax Identification Number)
- NOC from the Pollution Control Board (if applicable)
Online Udyam Registration Process
The online Udyam Registration process for micro, small, and medium
enterprises (MSMEs) in India is designed to be user-friendly. Here’s a step-by-step guide to
Online Udyam Registration:
-
Visit Website: Go to the official Udyam Registration portal managed by
the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The URL
for the portal is https://udyamregistration.gov.in.
-
New User Registration: If you are a new user, you will need to create
an account on the portal. Click on the "New Registration" or "Register" option to begin
the process.
-
Enter Aadhaar Number (or Passport for NRIs): Enter your Aadhaar number
(for Indian citizens) or Passport number (for non-resident Indians) to proceed with
registration. In case of a Company or a Limited Liability Partnership or a Cooperative
Society or a Society or a Trust, the organization or its authorized signatory shall
provide its GSTIN and PAN along with its Aadhaar number.
-
Verify OTP (One-Time Password): You will receive an OTP on your
registered mobile number linked with Aadhaar. Enter this OTP to verify your identity and
continue the registration process.
-
Fill in the Registration Form: After OTP verification, you will need to
fill out the online registration form. Provide details such as:
- Personal information (name, Aadhaar number, PAN card details, etc.).
- Business details (name and type of enterprise, business address, date of
commencement, etc.).
- Bank account details (account number and IFSC code).
- Classification details (industry type, activities undertaken, investment in
plant & machinery, annual turnover, etc.).
-
Upload Required Documents: Upload scanned copies of documents such as
Aadhaar card, PAN card, business address proof, and any other relevant certificates or
documents as specified.
-
Submit the Application: Double-check all the information provided in
the registration form and ensure all required documents are uploaded correctly. Once
satisfied, submit the application.
-
Payment of Registration Fee: Pay the registration fee online, if
applicable. The fee structure varies based on the category of enterprise (micro, small,
medium).
-
Issuance of Udyam Registration Certificate: Upon verification of the
details provided, your Udyam Registration Certificate will be issued. You can download
the certificate from the portal once it is available.
Who can apply in Udyam Registration Portal?
The Udyam Registration portal is specifically designed for micro,
small, and medium enterprises (MSMEs) in India. MSMEs are classified based on their
investment in plant and machinery or equipment (for manufacturing enterprises) and annual
turnover (for both manufacturing and service enterprises). Individuals and entities involved
in manufacturing or providing services, as defined under the MSME Development Act, 2006, can
apply for Udyam Registration. The classification criteria are as follows:
- Micro Enterprises: Investment up to Rs. 1 crore and turnover up to Rs. 5 crore.
- Small Enterprises: Investment up to Rs. 10 crore and turnover up to Rs. 50 crore.
- Medium Enterprises: Investment up to Rs. 50 crore and turnover up to Rs. 250 crore.
Who Cannot Apply?
- Entities that do not meet the definition of MSMEs as per the criteria specified by the
MSME Development Act, 2006.
- Enterprises that do not have the required documents or information for registration.
- Entities engaged in activities not covered under the MSME sector, such as large-scale
manufacturing or services beyond the prescribed turnover limits.
Udyam Registration Fees in India at BizFoc
There is no fee charged by the government for Udyam Registration
itself. The registration process is free of cost for MSMEs. While the government does not
charge any fee for Udyam Registration, We at BizFoc charge a nominal fee of Rs 499 to
assist with the Udyam Registration in India. This fee is for our service and is not mandated by the
government.
How long it takes to get the Udyam Registration certificate in India ?
BizFoc applies for Udyam application within 4 hours of the engagement and Udyam resgistration certificate is issued on the same day.
BizFoc Assistance for Udyam MSME Registration
BizFoc assists in Udyam Registration by guiding micro, small, and
medium enterprises (MSMEs) through the registration process. We ensure all necessary
documents are in order, help fill out the registration form accurately, and submit it
online. Additionally, they may provide advisory services on classification, eligibility
criteria, and benefits available under the Udyam scheme.
Conclusion
The Udyam Registration portal serves as a platform for MSMEs in
India to formalize their operations and gain access to government schemes, incentives, and
support mechanisms aimed at fostering growth, competitiveness, and sustainability in the
market. If you fall within the criteria outlined above and are looking to benefit from
government initiatives for MSMEs, applying for Udyam Registration is essential.
Frequently Asked Questions for Udyam Registration
Udyam registration is important for businesses
falling under the Micro, Small and Medium Enterprises category to avail of
government benefits, such as tax incentives and credit facilities.
Visit the Udyam Registration Portal, click on
'Print/Verify,' and choose 'Verify Udyam Registration Number.' Enter your
reference number and captcha to check the status.
Documents include Aadhaar card and PAN card. For
GST-registered entities, GSTIN details are necessary.
No, the MSME Udyam registration process is free
of charge on the official Udyam Portal.
Entities such as individuals, startups,
companies, LLPs, co-operative societies, and trusts engaging in eligible
activities can apply.
Visit the Udyam Registration Portal, click on
'Print/Verify,' select 'Print Udyam Certificate,' enter your registration
number and follow the steps.
Yes, sole proprietors managing business affairs
individually can apply for MSME Udyam registration.
Benefits include cheaper bank loans, extended
MAT credit period, government scheme access, and priority sector lending
eligibility.
Yes, entities registered under the Co-operative
Societies Act are eligible for MSME Udyam registration.
Use the 'Forgot Udyam Registration Number'
option on the Udyam Registration Portal, enter your mobile/email, and
receive the details via SMS/Email.