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With 63.4 million units in the country, many regard the Micro, Small and Medium Enterprises (MSME) sector as the backbone of India’s socio-economic development. MSMEs contribution to India’s GDP across the manufacturing sector (6.11%) and services sector (24.63%) is significant and has been instrumental in building a resilient, innovative, and growth-driven sector (Source: IBEF). To enable more MSMEs accelerate their growth and keeping to India’s digital transformation initiative, MSME registration via the Udyam portal is an easy, quick, online process.

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There are benefits of MSME registration online, especially when it comes to low-interest MSME loan schemes, subsidies and exemptions. We’ll take a look at the MSME registration process, eligibility and documents required to apply, and the MSME registration fees involved.

MSME registration: Key highlights

Before we understand how to register your business as a MSME, here are some of the key points to keep in mind:

  • Your business must meet the new MSME classification criteria based on investment and annual turnover to be eligible for the registration process
  • MSME registration is not mandatory but beneficial for businesses as it enables the business to avail specific tax exemptions, subsidies, credit facilities etc. (Also read: Tax benefits and subsidies for MSMEs)
  • This is an online process via the Udyam portal with basic documentation (PAN and Aadhaar)
  • There are no MSME registration fees, i.e., it’s free registration for all eligible MSME businesses

MSME (Udyam) registration numbers in 2024

Before we delve into the MSME Udyam registration process, here are some latest number from the portal on the same.

*Image for representation only. Not actual.

Updates on MSMEs in India (registered):

Total registration Total classified Micro Small Medium Total employment
2,45,90,993 2,45,31,085 2,38,65,305 6,10,225 55,555 16,18,41,704

*Source: Udyam portal (udyamregistration.gov.in), March 2024

In the sections below, we will first understand the MSME registration procedure and then take a brief look at the eligibility criteria, documents required, fee details, and clear doubts on whether MSME registration and Udyam registration are the same.

How to apply for MSME registration online?

To register your business as a MMSE you must visit the Udyam portal. Through self-declaration with minimum documentation, MSMEs can register on the portal and complete the MSME Udyam registration process. An e-Certificate or Udyam registration certificate will be generated which can easily be downloaded. The Udyam portal is linked to other government portals (namely Income Tax) and can easily fetch GST, turnover, investment and other relevant data from the portals.

Note:

  • Businesses under Udyog Aadhaar can re-register and migrate
  • Businesses with UAM or EM-II will have to re-register on Udyam
  • Registration on the portal has to be done only once

To apply:

  • Visit the online Udyam portal: udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
  • Select the MSME/Udyam registration process applicable to you: For new entrepreneurs or for migration (re-registering) to Udyam

Let’s take a look at how to register on Udyam for the first time.

Udyam registration for new Entrepreneurs who are not Registered yet as MSME or those with EM-II

The MSME free registration process is a paperless, online system, based on self-declaration. Simply, follow the steps below:

  • Scroll the homepage and click on the registration section for ‘For new Entrepreneurs who are not Registered yet as MSME or those with EM-II’
  • View the Udyam Registration Form page: udyamregistration.gov.in/UdyamRegistration.aspx
  • Enter your Aadhaar Number and ‘Name of Entrepreneur’ that is, your name as per Aadhaar card
  • Ensure the consent check box is checked
  • Click on ‘Validate and Generate OTP’ button at the end of the page to get OTP on your mobile number (same as the mobile number linked with Aadhaar)
  • Enter the OTP received and validate the profile with Aadhaar
  • Enter your PAN card number and type of organisation on the new page for PAN verification (Note: Select if you have filed ITR for previous year and have a valid GSTIN)
  • Click Validate
  • Enter additional details about your organisation in the application form: Name of entrepreneur, mobile number, name of the enterprise, location of the plant, address, bank details etc.
  • Add details on investment in plant and machinery and annual turnover and submit the form
  • Fill in the final OTP for verification
  • Check for confirmation of registering your business as a MSME on Udyam portal

MSME clarification on selection of financial year for Udyam registration:

The MSME Ministry has clarified that for FY 2020-21, data from FY 2018-19 was auto populated for Udyam registration. This is considered as frozen data.

This was done to ensure proper MSME classification was being implemented. The Udyam portal is interlinked with the Income Tax portal and can automatically fetch relevant turnover and investment years from the portal.

Udyam re-registration: For those already having registration as UAM

For those enterprises that have UAM number, the MSME registration online process is as follows:

  • Visit the Udyam homepage and scroll down to the registration section
  • Under ‘You can Migrate to Udyam (Re-Register) here’, select the correct option
  • Select ‘For those already having registration as UAM’ if you already have UAM number: udyamregistration.gov.in/UdyamRegistrationExist.aspx
  • Click on ‘For those already having registration as UAM through Assisted filling’ if this is more suitable: udyamregistration.gov.in/Udyam_AssistedMigration.aspx

In both cases, you will have to begin by entering your Aadhaar number and then verifying details via email or phone (as filled in UAM). Click on the button to get OTP and verify details.

The following steps are similar to new business registration process where you have to fill in specific details and your business will be migrated to Udyam.

MSME Certificate

*Image for representation only. Not actual.

How to print or download MSME registration certificate online?

Once you complete the MSME registration online process, you can download your e-Certificate with your MSME registration number. You can read about how to download MSME certificate in detail, but here’s a snapshot of the process:

  • Visit the Udyam homepage and hover over the ‘Print/Verify’ option on the main navigation
  • Click on ‘Print Udyam Certificate’
  • Enter your Udyam registration number, mobile number and validate using OTP

The Udyam certificated thus generated will contain your 19 digit URN and also a QR code via which details about the MSME can be accessed.

Can e-Commerce platforms register on Udyam?

E-Commerce businesses can register their businesses on the Udyam portal for a MSME registration certificate.

The Udyam portal lists e-Commerce as a separate business activity. Once an e-Commerce business is registered on Udyam portal, it can leverage specific benefits, subsidies, and exemptions.

What documents are required for MSME registration?

As mentioned earlier, the MSME registration online process is a paperless process and requires minimum documents.

The basic documents for MSME registration are (note, you do not have to upload them):

  • Aadhaar card
  • PAN card

You will however need to keep other business related documents handy as you will have to self-declare details during filling up the Udyam Registration Form.

Note: GST registration is not mandatory if your MSME does not fall below the GST registration limit threshold.

What are the MSME registration fees?

Udyam registration is a zero-cost service. As an MSME, you do not have to pay any fees to register on the portal.

You may have to pay service charges to the professional agencies or individuals helping you in MSME registration process.

Udyam registration impact in the employment and economic growth

There are several benefits that MSMEs get with a MSME registration certificate. Apart from the general exemptions and subsidies, the greatest benefit is building credibility.

MSMEs often struggle to prove their value and build trust among potential customers. With a MSME certificate, it can showcase its authenticity and build trust in customers. A similar process of generating a Business Registration Number (BRN) registration is also prevalent in the state of Rajasthan. It allows a business to verify its existence there.

Apart from this, some of the general economic and employment related benefits of Udyam registration are:

  • Access to central government loan and subsidy schemes
  • Concession on taxes and bank interest rates
  • Exemption from paying EMD in government tendering process
  • Protection against delayed payments via the MSME Samadhaan portal
As a MSME business owner, if you are looking to grow your business, register on Tata nexarc today. We are a B2B platform for MSMEs and offer affordable solutions to accelerate growth. We have partnered with trusted service providers in the country and offer a wide range of services across steel procurement, logistics, tenders and more. Register today to explore more.

Note: This article is for informational purposes only. The article is updated on 6 June 2024 to keep it relevant with additional FAQs and a video guide for visitors.

 

What is Udyam portal?

The Udyam portal is a government portal to register a business as Micro, Small and Medium Enterprises (MSME) and avail the benefit provided by the government to this sector. MSMEs can be from the manufacturing sector, services sector, or retail and wholesale trade. The portal can also be used to re-register a business previously registered under Udyog Aadhaar (i.e., businesses with UAM number).
  • The Udyam portal was launched by the Union MSME Ministry, Government of India on July 1, 2020, to boost the MSME sector of India
  • It has replaced the previous Udyog Aadhaar portal and today is the single platform where all MSMEs should register
  • MSME registration  on Udyam portal is free and paperless
  • It’s based on self-declaration and requires only PAN and Aadhaar card
  • Once you register on the Udyam portal, you will be provided with a unique identity number (URN) along with a recognition e-Certificate with a QR code
  • Udyam portal is linked to other government portals (Income Tax and GST) and can fetch relevant taxation and turnover details from these portals
Based on the details provided by you during the MSME registration process and the new classification of MSME, the Udyam certificate will categorise your enterprise as a micro, small or medium scale unit.

How many MSMEs are there in India?

As of May 2024, as per the Udyam portal factsheet, there are 4,42,43,964 registered MSMEs (Udyam + Udyam Assist Platform). Factsheet of MSME Udyam Portal:
  • Total registration: 2,59,99,143
  • Micro: 2,51,70,417
  • Small: 7,01,972
  • Medium: 67,090
These number represents only businesses that have registered on the platform and not other un-registered businesses. There are 633.9 lakh MSMEs registered in India (Source: IBEF). MSMEs contribution to India’s GDP is close to 30%, while that in the manufacturing output is around 45%, and around 48% of the country’s exports.

What is the Udyam portal used for?

The Udyam portal is used for MSMEs in India. It is linked to other government portals (Income Tax and GST) and can fetch business investment and turnover details automatically. Based on the annual turnover and investment in plant and machinery/equipment made by the business, it can categorise a business as a micro, small or medium enterprise to allow it to leverage benefits applicable to it. The government encourages all MSMEs to register for free on the Udyam portal to avail several benefits. It acts as the single portal for all MSMEs in India to register themselves and leverage the multiple benefits that come with it, such as government subsidies, low-interest loans, financial aid, exemptions from EMD in government tendering, and more. Any business that meets the definition of MSME as per the MSMED Act 2006 can register on the Udyam portal.

What is the difference between Udyam and MSME?

Udyam registration is also known as MSME registration. Initially the government had launched the Udyog Aadhaar portal for all MSMEs. However, since 2020, Udyam is the single portal for all businesses to register for MSME recognition. As such, to answer is Udyam and MSME registration the same? Udyam and MSME registration is the same today, that is, instead of registering on Udyog Aadhar (non-existent today), businesses will need to migrate or register new on Udyam portal for MSME certificate.

Who is eligible to register on Udyam portal ?

To access the Udyam portal features, the obvious eligibility criteria is that you should be an MSME as per the definition of MSME as per the MSMED Act, 2006 (including revisions). This means that your business should be into:
  • Manufacturing sector
  • Services sector
  • Retail or wholesale trade
It also means that your business’s annual turnover and investment in plant and machinery and equipment should be within the limit set.
  Annual turnover Investment in Plant & Machinery
Micro enterprise Up to ₹5 crore Up to ₹1 crore
Small enterprise Up to ₹50 crores Up to $10 crores
Medium enterprise Up to ₹250 crores Up to ₹50 crores
*This is a composite classification applicable to manufacturing and services sector (Note – Retailers and wholesalers by definition can register on Udyam and only avail priority sector lending benefits as a MSME)
The MSME registration eligibility is open to all businesses that fit the requirements. Today, even e-Commerce businesses can register on Udyam as an MSME.

Who can apply on Udyam Registration Portal?

The enterprises eligible for MSME registration on Udyam portal include:
  • Individuals, startups, business owners, and entrepreneurs
  • Private and public limited companies
  • Sole proprietorship
  • Partnership firm
  • Limited Liability Partnerships (LLPs)
  • Self Help Groups (SHGs)
  • Co-operative societies
  • Trusts

What documents are required to submit on Udyam portal?

The list of documents that you will need while applying for Udyam registration include:
  • Registered mobile number
  • GST certificate and copy of passbook
  • List of male and female employees employed
  • Financial statements or audit reports of the business
  • Partnership deed (if any)
  • Articles of association
  • Memorandum of association
In addition to the above documents, it is necessary for enterprises to have a NIC code for Udyam portal. The National Industrial Classification Code (NIC) is a classification scheme that is supplied by the government to track business activities of MSME businesses. You need to provide your NIC code while registering for Udyam.

How to check status on Udyam portal?

If you have completed the process on Udyam registration portal, you may want to check the status of your registration. To check the status and download certificate , simply:
  • Visit the Udyam homepage
  • Login to your account using your 19 digit URN number and mobile number
  • Validate using the OTP received
  • View the status of your application on the new page displayed

How can I get my 12 digit UAM number?

Follow the steps if you have forgotten Udyam/UAM number:
  • Visit the Udyam portal homepage
  • Hover over ‘Print/Verify’ tab
  • Select ‘Forgot Udyam/UAM No.’ from the dropdown options
  • Choose your Registration option – Udyog Aadhaar Memorandum
  • Choose the OTP option (as filled in previous application) – Mobile or Email
  • Enter Mobile/Email as per selection
  • Click ‘Validate & Generate OTP’
  • Enter the OTP to validate
  • View your registered 12- digit UAM number or URN number as requested

Sohini Banerjee

Sohini is a seasoned content writer with 12 years’ experience in developing marketing and business content across multiple formats. At Tata nexarc, she leverages her skills in crafting curated content on the Indian MSME sector, steel procurement, and logistics. In her personal time, she enjoys reading fiction and being up-to-date on trends in digital marketing and the Indian business ecosystem.