Udyam Registration

Udyog Aadhaar, introduced in 2015, was the earlier MSME registration system. It was replaced by Udyam Registration in 2020 to simplify and streamline the MSME registration process. The key differences between Udyog Aadhaar and Udyam Registration are given below:

Note: Existing businesses registered under Udyog Aadhaar/EM-II should migrate to Udyam Registration as per the applicable government requirements.

• Visit the government portal for Udyam Registration.
• Aadhaar Verification
  • Enter your Aadhaar number and the 'Name of Entrepreneur' as per the Aadhaar Card.
  • Tick the declaration and click on 'Validate and Generate OTP'.
  • Enter the OTP sent to your registered Aadhaar mobile number for verification and click on the 'Validate' button.
• PAN Verification
  • Enter the type of organisation (for example, partnership), name of PAN holder, PAN, and DOB as per PAN.
  • Tick the declaration and click on 'Validate'. Your PAN will be verified.
• Answer the following questions:
  • Have you filed the ITR for the previous year - Yes/No?
  • Do you have GSTIN - Yes/No?
• Investment in Plant and Machinery
  • Enter Written Down Value (WDV) as on 31st March of the previous year.
  • Enter the cost of R&D, pollution control and industrial safety devices of the previous year.
  • Net Investment will be automatically calculated.
• Turnover (in Rs.)
  • Enter total turnover of the last year and export turnover of the last year. Net turnover will be automatically calculated.
  • Click on Continue.
• Basic Details
  • Enter:
    • Name of the entrepreneur, name of enterprise, mobile number, email address, social category, gender, specially abled (yes/no), official address of the enterprise, and location of Plant(s)/Unit(s).
• Enter the following details:
  • Previous EM-II/UAM registration number, if any, status of the enterprise, bank details, major activity of the unit, National Industrial Classification (NIC) Code for Activities, and number of persons employed in the enterprise.
• Select the following as per your requirement:
  • Are you interested in getting registered on the Government e-Market (GeM) Portal?
  • Are you interested in getting registered on TReDS Portals?
  • Are you interested in getting registered on the National Career Service (NCS) Portal?
  • Are you interested in getting registered on the NSIC B2B Portal?
  • Are you interested in getting registered on the Skill India Digital Portal?
• Once done, tick the declaration and click on the 'Submit and Get final OTP' button.
• Once again, enter the OTP on your registered mobile number. Your Udyam Registration will be completed.

Understanding NIC Codes

• National Industrial Classification (NIC) code is an official numerical code assigned to businesses.
• MSMEs need to provide the applicable NIC code during Udyam Registration as a mandatory step.
• It identifies the business activity and category of the enterprise.
• It helps determine eligibility for various MSME schemes and benefits.
• The NIC system is managed by the Ministry of Statistics and Programme Implementation (MoSPI).

Udyam Registration is a permanent registration and provides a basic identification number for an enterprise. An enterprise registered on the Udyam portal can avail the following benefits:

• No need for renewal of registration.
• All activities, including manufacturing and services, may be added under one registration.
• MSMEs can avail the benefits of schemes of the Ministry of MSMEs, such as the Public Procurement Policy, Credit Guarantee Scheme, protection against delayed payments, and additional benefits in government tenders.
• MSMEs become eligible for priority sector lending from banks and can apply for business loans with fewer hassles for quick approval.

To apply for an unsecured business loan, borrowers can visit the Paisabazaar website and compare options across different eligible loan offers.

Who is Eligible to Register for MSME Under Udyam?

Based on Investment and Turnover

Based on Type of Business Entity

• Proprietorship
• Partnership
• LLP
• Private Ltd. / OPC / Public Ltd.
• Traders & Service Providers

Documents Required for Udyam Registration

MSMEs need not upload any documents for Udyam Registration. The registration process requires PAN and Aadhaar details of the applicant or entity, along with other information as applicable. The documents/details required for Udyam Registration are mentioned below:

• Registration form provided on the Udyam Registration portal.
• Aadhaar number of the proprietor in case of a proprietorship firm, managing partner in case of a partnership firm, and Karta in case of a Hindu Undivided Family (HUF).
• GSTIN and PAN along with Aadhaar details of the organisation or an authorised signatory in case of a Company, Limited Liability Partnership, Cooperative Society, Society, or Trust.

For those who are already registered with EM-II or Udyog Aadhaar:

• Visit the official Udyam Registration portal.
• Click on 'You can Migrate to Udyam (Re-Register) here'.
• Enter your Udyog Aadhaar Number and select the OTP option, such as OTP on Mobile as filled in UAM or OTP on Email as filled in UAM.
• Click on 'Validate and Generate OTP' and enter the OTP received on your registered mobile number.
• Your Udyog Aadhaar Number will be validated.
• Fill in the required information and complete the process.

Note: Once the process is completed, the Udyam Registration Certificate is issued online. The certificate is provided with a dynamic QR code that can be used to access the portal web page and details of the enterprise.

How to Download Udyam Registration Certificate?

You can download the Udyam Certificate from the official portal by following the steps mentioned below:

• Go to "Print/Verify" and click on "Print Udyam Certificate".
• Enter the required information and generate the OTP.
• Enter the OTP and click on "Validate OTP and Login" to download the PDF.

Udyam Registration Fees and Validity

• Udyam Registration is free of cost.
• The registration has lifetime validity and does not require renewal.

Common Mistakes to Avoid During Udyam Registration

• Entering incorrect PAN and Aadhaar details.
• Not providing an Aadhaar-linked mobile number.
• Providing an incorrect business classification.
• Not selecting the relevant NIC code for the business activity.
• Leaving the form incomplete or entering inaccurate information.
• Entering investment or turnover figures that do not match the relevant ITR/GST records.