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If you are a MSME business owner, then you are likely familiar with the Udyam portal. If not, this article will answer frequently asked questions on Udyam registration online to enable you to learn more about the Udyam portal and why it is beneficial for MSME businesses in India. We answer questions on the Udyam registration portal process, how Udyam is different from Udyog Aadhaar, how to download MSME e-Certificate with URN, and more.

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What is the 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
  • Registration on Udyam is free of cost and paperless
  • It’s based on self-declaration and requires only PAN and Aadhaar card for registration
  • Once you register on the Udyam registration 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.

Udyam portal

*Image for representation only. Not actual.

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 registration:

  • 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 MSME registration 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.

The Udyam registration process is based on self-declaration and can be done online by any business that meets its eligibility criteria. It is also a paperless process, making it quick and convenient.

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?

A common question asked is – What is the difference between Udyam and MSME registration.

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.

This was done to remove the complexities and multiple steps involved in the Udyog Aadhaar registration process. Today, all business registered with Udyog Aadhaar can migrate and re-register on Udyam registration portal.

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 registration portal for MSME certificate.

What is the Udyam Aadhar?

The term Udyam Aadhar is often used for Udyam registration. Initially, MSMEs and small-scale industries units, could register themselves on the Udyog Aadhar platform and obtain the 12-digit UAM certificate (Udyog Aadhaar Memorandum). This has however been discontinued since 2022.

In 2020, the government launched the Udyam portal as a one-stop for all MSME registrations. All new and existing MSMEs (i.e., those with UAM certificate) are encouraged to register on the Udyam portal and obtain the 19-digit URN number e-Certificate with QR code. The QR code can be scanned for details pertaining to the business.

Udyam Aadhar therefore is Udyam registration, migrated from Udyog Aadhaar Memorandum.

MSME Udyam registration

Who is eligible for Udyam portal registration?

For Udyam registration, 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 Udyam 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 for Udyam registration?

The eligibility for MSME registration depends on the annual turnover and investment of the enterprise as per the revised definition for Micro, Small and Medium Enterprises.

All industries under manufacturing, service, wholesale, and retail trade that fulfil the classification criteria of annual turnover and investment for enterprises can apply for MSME registration. You can also check the list of MSME businesses in India to understand if your business falls under the basic definition of MSMEs or not.

The enterprises eligible for MSME registration on Udyam 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

Note: Individuals cannot apply for MSME Udyam registration. Also, there are some business activities and categories not eligible.

What documents are required for Udyam portal registration?

Udyam portal registration is a paperless, online process, based on self-declaration. The basic documents required for MSME registration on Udyam include:

  • Aadhaar card
  • PAN card

It’s necessary that your mobile number is linked to Aadhaar for verification and communication purposes. Also, since the Udyam portal is linked to IT (tax) and GST portals (GSTIN), details relating to GST-linked investment and turnover will be fetched based on PAN card details provided from the government databases.

This keeps the Udyam registration process quick, transparent, and efficient. However, you will need supporting documents to build your business profile on Udyam (e.g., business name, incorporation date, address etc.).

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 registration. 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.

Udyam registration portal

How to do Udyam registration step by step?

You can register your business online on the Udyam registration portal. The process is simple and quick and requires minimum documents. Follow the steps below to register your MSME on Udyam.

How to register on Udyam online?

Step 1:

  • Visit the Udyam registration portal: //udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

Step 2:

For new registrations, that is, enterprises that do not have Udyog Aadhaar registration and are registering as a MSME for the first time.

  • Scroll the page to the MSME/Udyam Registration Process section – Welcome to Register here
  • Click on ‘For New Entrepreneurs who are not Registered yet as MSME or those with EM-II’
  • Enter ‘Aadhaar Number’ and ‘Name of Entrepreneur’
  • Click ‘Validate & Generate OTP’
  • Enter OTP to validate
  • Enter PAN details and type of organisation
  • Validate details
  • Add details about business and investment in the registration form
  • Enter the final OTP received
  • Check and confirm your business’s registration on the portal
  • Print/download your Udyam MSME e-Certificate (with URN number) from the portal

Step 3:

For those businesses that UAM number (Udyog Aadhaar Memorandum) and need to migrate.

  • Visit the Udyam homepage and scroll to – You can Migrate to Udyam (Re-Register) here
  • Select ‘For those already having registration as UAM’ for those with UAM number
  • Opt for ‘For those already having registration as UAM through Assisted filling’ otherwise

Begin the registration process by entering your Aadhaar number followed by phone or email address (as in the UAM certificate). Validate by entering the OTP received and complete the migration process by filling in specific details.

How to check Udyam registration status?

If you have completed the process on Udyam registration portal, you may want to check the status of your registration. To check the status of your Udyam registration, 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 to verify Udyam Registration Number?

You can also verify your URN number on the Udyam registration portal. Follow the steps below to verify your Udyam Registration Number (URN):

  • Visit the Udyam portal homepage
  • Hover over ‘Print/Verify’ on the main menu
  • Select ‘Verify Udyam Registration Number’ from the dropdown menu
  • Enter your 19 digit URN number and the verification code Captcha
  • Click ‘Verify’

Once the verification is complete, you can revisit the Print/Verify section and download your MSME certificate.

How can I get my 12 digit UAM number?

Your 12 digit UAM number was provided when you registered on the Udyog Aadhaar Memorandum platform. However, with the launch of the Udyam portal, all registered MSMEs with UAM numbers are encouraged to migrate and re-register on the Udyam registration portal for reaping its benefits.

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 or Udyam Registration
  • 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

How to verify Udyog Aadhaar number?

If you have a UAM number and need to verify it for re-registering/migrating to Udyam, follow the steps below to verify Udyog Aadhaar number on Udyam portal:

  • Visit the Udyam registration portal
  • Go to ‘Print/Verify’ section on the home page
  • Click on ‘Verify Udyog Aadhaar’ from the drop down options
  • Enter 12-digit UAM number (Note: This is a new page for UAM Online Verification)
  • Fill in the Captcha verification code
  • Click on ‘Verify’

This completes the Udyog Aadhaar number verification (check the message displayed on the page).

How to download MSME certificate on Udyam?

You can generate, print and download your MSME certificate from the Udyam registration portal. Follow the steps to download MSME e-Certificate online:

  • Visit the Udyam portal
  • Browse over ‘Print/Verify’ option on the main navigation menu
  • Select ‘Print Udyam Certificate’
  • Complete the Udyami Login process by entering your Udyam Registration Number (19 digit URN) and Mobile number
  • Choose OTP option to receive verification OTP
  • Click ‘Validate & Generate OTP’
  • Print/Download your MSME Certificate now

Udyam MSME certificate

*Image for representation only. Not actual.

Who can get Udyam certificate?

Any MSME business registered on the Udyam portal can get the Udyam certificate. Those with a valid UAM number can also migrate/re-register themselves and get an Udyam certificate.

Eligibility remains the same (discussed earlier), where:

  • Enterprise must be belonging to manufacturing, services, retail or wholesale trade
  • Annual turnover and investment in plant and machinery and equipment must be within the limit set (i.e., up to ₹250 crores in annual turnover and up to ₹50 crores in investment in plant and machinery)
  • Any sole proprietor, partnership, LLP, Trust or other entity as identified
  • Must be an eligible business (i.e., must not be in forestry, gambling, fishing and other non-eligible businesses)
  • Must not be an individual (i.e., Udyam registration is only for businesses)

What are the benefits of Udyam Registration for MSMEs?

The next question asked is – What are the benefits of registering on Udyam as an MSME?

Some of the key benefits of MSME registration include the following. You can also visit the Udyam website to know more about the benefits. You can even access the same in in regional languages of India for better understanding.

  • Finance facilities from banks without collateral requirements
  • Central government development schemes for MSMEs and new enterprises
  • Subsidies and government schemes for specific industries
  • Reservation in making of certain products by MSMEs only
  • Concession on bank interest
  • Concession on taxation
  • Protection against delayed payments (e.g., programmes like MSME Samadhaan)
  • Preference in government tender process
  • Stamp duty benefits
  • Concession in electricity bills and trademark registration
  • Reimbursement of ISO Certification expenses
  • Facility for foreign business expo
  • Upgradation of technology used
  • Capital grant for infrastructure development

What are the key features of Udyam portal?

Another frequently asked question is on the main features of the portal. Some of the features that distinguish the portal are:

  • A permanent Udyam Registration Number provided once you complete the registration process
  • Online, paperless registration process based on self-declaration
  • One time registration only (i.e., renewal not required)
  • No Udyam registration fees (i.e., involves zero cost)
  • Integration with Income Tax and GSTIN systems
  • A single enterprise can file only one registration
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Anirban Sinha

A product manager with a writer’s heart, Anirban leverages his 6 years of experience to empower MSMEs in the business and technology sectors. His time at Tata nexarc honed his skills in crafting informative content tailored to MSME needs. Whether wielding words for business or developing innovative products for both Tata Nexarc and MSMEs, his passion for clear communication and a deep understanding of their challenges shine through.