The Udyam Registration is the government-authorised online registration process for Micro, Small and Medium Enterprises (MSMEs) in India. Launched by the Ministry of MSME on July 1, 2020, it replaced the previous Udyog Aadhaar mechanism and has come to be the single-window platform for entrepreneurs to enjoy benefits such as government tenders, subsidies, and financial incentives.
Udyam Registration: Step-by-step process
Following is a detailed, step-by-step guide to assist you in registering your business under the Udyam system.
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Step 1: Go to the Official Udyam Registration Portal
To begin with, go to the official government website – udyamregistration.gov.in (https://udyamregistration.gov.in). This is the sole official portal for MSME registration. Make sure you are accessing it using a secure internet connection and have your Aadhaar and PAN details handy.
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Step 2: Choose the Right Registration Type
On the home page, you have two principal options:
- For New Entrepreneurs who are not yet registered under MSME or have EM-II.
- For Existing Businesses already registered under Udyog Aadhaar (UAM) and wanting to switch to Udyam.
Select the appropriate option to continue.
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Step 3: Enter Aadhaar Number and Generate OTP
Enter the Aadhaar number of the business owner, managing partner, or authorised signatory. Click on “Validate & Generate OTP.” An OTP would be sent to the registered mobile number associated with the Aadhaar. Enter the OTP properly in order to verify.
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Step 4: Enter PAN Details and Validate
After Aadhaar verification is done, the system will ask you to provide your Permanent Account Number (PAN). Once you submit it, the portal will match your PAN against government databases. This process gives it transparency and authenticity of financial credentials.
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Step 5: Enter Business Details
Provide basic details of your enterprise, such as:
- Name of the enterprise
- Type of organisation (Sole Proprietorship, Partnership, LLP, or Company)
- Business address and contact information
- Date of establishment
- Nature of business (Manufacturing/Service or both)
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Step 6: Add Investment and Turnover Information
Give the latest financial data on:
- Investment in plant and machinery (for manufacturers) or equipment (for service providers)
- Annual turnover for the most recent financial year
These amounts decide your MSME category:
- Micro: Investment ≤ ₹1 crore and turnover ≤ ₹5 crore
- Small: Investment ≤ ₹10 crore and turnover ≤ ₹50 crore
- Medium: Investment ≤ ₹50 crore and turnover ≤ ₹250 crore
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Step 7: Fill Self-Declaration
Carefully examine all details filled in, then complete the self-declaration attesting to the accuracy of the information. Udyam registration is done on self-certification basis, and no scanned documents need to be uploaded.
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Step 8: Submit Application and Obtain Udyam Number
After completing the self-declaration, click on “Submit and Get Final OTP.” Upon successful submission, you’ll receive an Udyam Registration Number (URN) along with a confirmation message.
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Step 9: Download Udyam Certificate
Once verification is complete, the Udyam Registration Certificate will be generated and sent to your registered email. This certificate includes a dynamic QR code, which allows anyone to access details about your enterprise directly from the Udyam portal.
Udyam Registration: Points to Keep in Mind
- No Registration Fee: It is absolutely free.
- Fully Online: No need for physical submissions or visits.
- Single Registration: A single registration per enterprise, inclusive of all its activities.
- Integrated Systems: Integrated with the Income Tax and GST databases for easy verification.
Udyam Registration: Advantages
- Priority lending and easy availability of bank loans under MSME schemes.
- Subsidies on ISO certification and patent registration.
- Protection against delayed payments under the MSME Act.
- Preference in government tenders and procurements.
Summing up, registration on the Udyam portal is a quick, paperless, and self-certified procedure that bestows formal recognition on small businesses and also provides them with access to numerous government benefits. Entrepreneurs are advised to get done early to avail all possible support under India’s MSME scheme.
