Udyam Registration step by step Registration Process

 

What is Udyam Registration?

Udyam Registration is a process launched by the Ministry of Medium, Small and Micro Enterprises (MSME), Government of India. It replaces the erstwhile Udyam Aadhaar system and is a paperless and free easy way to register your business. Any business entity, whether sole proprietorship, partnership, LLP, or company, which falls under the MSME criteria, can apply for Udyam registration. However, the investment and turnover must be as per the MSME criteria. The entire process is done online through the official portal https://udyamregistration.gov.in along with the business's Aadhaar, PAN number and basic business details. Once the registration process is complete, the business is given an initiative registration number and a certificate. Since the entire business is paperless, the certificate is also digital in this case, so it must be saved carefully.This opens the door to a wide range of government benefits, including easier access to credit, priority in government tenders, interest subsidies and protection against late payments. Udyam registration formalizes small businesses, improves credibility and helps them grow through structured support from financial institutions and government schemes. If you are running a small business in India, becoming Udyam certified is a smart step towards long-term success.

Who can apply for Udyam Registration?

The following entities can apply:

1.      Proprietorships

2.      Partnership firms

3.      Hindu Undivided Families (HUFs)

4.      Limited Liability Partnerships (LLPs)

5.      Private Limited Companies

6.      Public Limited Companies

7.      Co-operative Societies

8.      Self Help Groups (SHGs)

9.      Societies

10.  Trusts

Eligibility Criteria for Udyam Registration as per MSME Classification.

Type of Enterprise

Investment including Plant, Machinery and Equipment. (Upto Rs. in Crore)

Turnover (Rs. in Crore)

Micro

1

5

Small

10

50

Medium

50

250

 Documents Required for Udyam Registration.

Compulsory  documents are needed, making the registration process simple:

  • Aadhaar Number of the owner (mandatory)
  • PAN Number of the business or individual
  • GSTIN (compulsory for businesses that fall under GST)
  • Business address and bank account details

(As it is a paperless process thus all documents needs in digital formate)

Registration Process for Udyam registration in portal.

Follow these steps:

  1. Go to https://udyamregistration.gov.in
  2. Click on "For New Entrepreneurs who are not Registered"
  3. Enter Aadhaar number and verify using OTP
  4. Fill in business details: PAN, name, activity, investment, turnover, etc.
  5. Submit the form
  6. Receive a Udyam Registration Number and a digital certificate via email

(Be careful no fees need to be paid its absolutely free)

Udyam Registration Benefits.

  1. Access to Government Schemes:
    • Credit Guarantee Scheme
    • Subsidies on patents, barcodes, etc.
  2. Easier Loan Approvals:
    • Priority sector lending by banks
    • Lower interest rates
  3. Protection Against Delayed Payments:
    • Under MSME Act, buyers must pay within 45 days
  4. Eligibility for Government Tenders:
    • Relaxation in EMD and other tender benefits
  5. Tax & Regulatory Benefits:
    • Subsidies on electricity, ISO certification, and more 

Responsibilities after Udyam Registration

  • Update business details if there are changes.
  • PAN and GSTIN are used for auto-verification of financials.
  • No need for renewal, but annual updates are advised.
  • Download the Digital Certificate.

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