Udyam Registration in India was launched on July 1, 2020, replacing Udyog Aadhaar Registration, by the government where Micro, Small, and Medium Enterprises register themselves and receive a permanent identification number called Udyam Registration Number (URN). Registration under Udyam enables MSME to assess various benefits such as government subsidies, ease in sanctioning of Bank Loan, loan at lower rate of Interest, certain exemption under Direct Tax Law, Various schemes, and some other. Although registration under Udyam is not mandatory, it is always recommended to the MSME to obtain registration and avail the benefits provided to such enterprises.
Aadhar card of the entrepreneur
PAN Card of the entity
Certificate of Incorporation, MoA & AoA / LLP Agreement / Partnership Deed
PAN Card of the Directors / Partners / Proprietor
Bank Account details of the entity
Major Activity
No of persons employed
Investment in Plant & Machinery/Equipments
An enterprise can enjoy various benefits after registering on the Udyam portal. Below we have discussed few benefits of Udyam Registration in India:
Complete Paperless- You don’t need to upload physical Balance sheets, proof of rent, or partnership deed or any other document.
Single registration for single enterprise- A single enterprise cannot obtain more than one registration.
Automatic Data Integration- The udyam portal directly fetches the data directly from Income Tax, and GSTIN databases.
Protection Against Delayed Payment- If a buyer doesn’t pay you within 45 days of receipt of goods or services or both, they are legally required to make payment with interest at three times the rate notified by RBI.
Aadhaar & PAN verification- If a buyer doesn’t pay you within 45 days of receipt of goods or services or both, they are legally required to make payment with interest at three times the rate notified by RBI.
Subsidy by Government- MSME registered under udyam get 50% subsidy for registering trademarks and filing patents.
Banks are eager to meet their targets of providing loans to MSME as per RBI guidelines, therefore they prefer enterprises having Udyam registration.
For loan up to Rs. 20 lakhs banks barred from accepting collateral security and this limit is extended to Rs. 25 lakhs for MSME registered under Udyam.
Government provides subsidy of 1% to 2% for enterprises registered under Udyam but for availing this scheme bank requires Udayam registration certificate.
Due to linking of Income Tax portal and GST portal with Udyam portal paper work gets reduced. As the Bank can access your details through scanning the QR of Udyam Certificate easily.
Any type of business in India can apply for Udyam registration according to the prescribed investments and turnover limit. Following are the list of persons who can apply for Udyam registration:
Sole proprietorships
Partnership Firms
One Person Companies
Hindu Undivided Families
Co-operative Societies
Self-Help Groups
An enterprise which wants to register itself under Udyam registration must qualify the Financial eligibility criteria prescribed by the government. As per current updates the MSME must qualify the Investment and Turnover limits provided while calculating total annual turnover must not include revenue generated from exports:
| Category of Enterprise | Investment Limit (Includes plant & machinery/equipment) | Annual Turnover Limit |
|---|---|---|
| Micro | Up to ₹ 2.5 Cr | Up to ₹ 10 Cr |
| Small | Up to ₹ 25 Cr | Up to ₹ 100 Cr |
| Medium | Up to ₹ 125 Cr | Up to ₹ 500 Cr |
Registration under Udyam is now paperless, online procedure and cost free. An enterprise just fills the requisite details online on the portal and generates the Udyam Registration Certificate.
Step 1:- Visit the official Portal of Udyam Registration. Link of official website https://www.udyamregistration.gov.in/
Step 2:- Enter 12 digit Aadhaar number, name of Entrepreneur same as on Aadhaar card. Click “Validate & generate OTP” and enter the OTP received on your mobile phone.
Step 3:- After selecting your type of organisation enter PAN and click “validate PAN”.
Step 4:- After PAN validation a detailed form will appear. Fill the details of form which includes mobile number, email ID, social category (ST/SC/OBC/General), official name of enterprise.
Step 5:- Add physical address of manufacturing unit, or plant. In case of more than one unit or plant you can add the location by clicking “Add Plant”.
Step 6:- Add bank account details.
Step 7:- Select correct NIC code i.e. National Industrial Classification code which accurately matches with your business activity.
Step 8:- Enter details of number of employees - male or female or other. Portal will automatically fetch the details of investments and turnover.
Step 9:- Final step is to click the submit button & generate OTP.
If an enterprise has decided to close the business or no longer need udyam registration, or mistakenly created duplicate registration can easily cancel or surrender its Udyam registration online. Following are the steps of Cancellation of Udyam Registration:
Visit the official portal- Link of website is https://www.udyamregistration.gov.in/
Log in with your registered credentials- By entering your 19 digit Udyam registration number and registered mobile number.
Enter valid OTP- Enter the OPT received on your mobile number or email ID whichever you have selected and validate it.
Navigate to the cancellation tab- After logging in into the portal, click the cancellation tab.
Select reason and submit- In the deactivation form choose appropriate reason for cancellation of Udyam registration and provide a supporting remark in the form and click “Cancel My Udyam”
Experts of Easethebiz help MSME to obtain their Udyam registration without any hassle. The government has automated all the process of registration, therefore accuracy in the information is necessary. We ensure accuracy, efficiency and effectiveness in our services. Due to any mismatch or error in information leads to rejection of application form by government therefore we ensure the data provided to government matches with the details available on GST and Income Tax Portal.
Get Free ConsultationQuick answers to the most common queries about our services.
Udyam Registration is a government registration process for MSMEs introduced on 1st July 2020 to replace Udyog Aadhaar. It provides a unique identification number called Udyam Registration Number (URN) for businesses to avail MSME benefits.
No, it is not mandatory, but it is highly recommended for MSMEs to avail benefits like loans, subsidies, and government schemes.
MSMEs get benefits such as easy bank loans, collateral-free credit, delayed payment protection, tax exemptions, subsidies on trademarks and patents, and paperless registration.
Sole proprietors, partnership firms, LLPs, OPCs, HUFs, cooperatives, trusts, societies, and self-help groups can apply based on eligibility criteria.
No physical documents are required. Aadhaar and PAN verification is mandatory, and GST/Income Tax data is auto-fetched.
Yes, you can cancel it online by logging into the Udyam portal, verifying OTP, selecting cancellation reason, and submitting the request.
Easethebiz ensures error-free Udyam Registration with accurate GST and Income Tax matching, helping avoid rejection and delays.
