Udyam (MSME) Registration Online in India

Udyam Registration is the new MSME Registration system launched by the Ministry of Micro, Small, and Medium Enterprises in July 2020. It replaces the earlier Udyog Aadhaar registration process.

This online system helps small businesses register themselves as Micro, Small, or Medium Enterprises. The Udyam Registration certificate serves as proof of your business's MSME status.

Difference Between Udyam and MSME Registration

People often get confused between Udyam and MSME Registration, but they're not different things. Udyam Registration is simply the current process for obtaining MSME Registration. Earlier, MSME Registration was done through Udyog Aadhaar. Now, the process is called Udyam Registration.

Purpose of MSME Registration in India

The main purpose of MSME Udyam Registration is to promote and develop small businesses in India. It helps the government in the following ways:

• Identify and support genuine small businesses
• Create focused policies for MSME growth
• Provide financial assistance to deserving enterprises
• Track the contribution of MSMEs to the economy
• Implement various schemes for small business development.

For business owners, Aadhar Udyam Registration gives access to various government benefits designed exclusively for MSMEs.

Businesses gain numerous advantages through MSME or Udyam Registration. Let's understand them in detail:

Easier Access to Credit

Registered MSMEs get lower-interest loans from banks and NBFCs, helping them fund growth without heavy interest burdens.

Exclusive Government Support

Once registered, you qualify for subsidies and schemes that cut operating costs and boost your expansion plans.

Priority Lending

Banks must allocate a portion of their lending to MSMEs. Your registration ensures you tap into this reserved pool of credit more easily.

Technology Upgrade Grants

The government offers financial assistance to help registered MSMEs adopt modern tools and processes, so you stay competitive.

Preferential Market Access

Many public tenders and procurement contracts earmark opportunities specifically for MSMEs, giving you a competitive edge in the marketplace.

Quick License Approvals

Your Udyam registration certificate lets you get licences and permits faster, so you avoid long waits.

These MSME Registration benefits significantly help small businesses grow and compete effectively.

Any of the following business structures can register as an MSME (Micro, Small, and Medium Enterprise). Have a look at the following list to understand if you are eligible:

• Partnership firm: A Partnership Firm needs Udyam Registration to access subsidized loans and government schemes.
• Private Limited Company: A Private Limited Company gets Udyam Registration to tap into credit guarantees and priority sector lending.
• LLPs: Registered LLPs that meet the prescribed investment and turnover thresholds register instantly on Udyam and start enjoying MSME benefits.
• Sole Proprietorship: Registered Sole Proprietorship complete Udyam Registration to unlock targeted subsidies and support schemes.
• Trust: Charitable or business trusts need the Udyam certificate to secure concessions and preferential tendering.
• NGO: Registered NGOs declare their service investment and turnover on Udyam to gain easy access to funding and scheme assistance.
• Startups: Registered Startups get Udyam registration to claim tax rebates, mentorship programs, and other incentives.

Both manufacturing and service businesses can apply for Udyam Registration online.

Types of MSME Registration criteria based on investment and turnover:

Micro Enterprises

• Investment: Up to ₹1 crore
• Turnover: Up to ₹5 crore

Small Enterprises

• Investment: Up to ₹10 crore
• Turnover: Up to ₹50 crore

Medium Enterprises

• Investment: Up to ₹50 crore
• Turnover: Up to ₹250 crore

A list of documents required for MSME Registration is minimal. Let's understand the ones that are mandatory for this type of registration:

• Aadhaar card of the business owner/partner/director
• PAN card of the business and the owner
• Business registration proof (certificate of incorporation, partnership deed, etc.)
• Business address proof
• Details of investment in plant and machinery
• Turnover details of the business
• Bank account details of the business

For a smooth MSME or Udyam Registration process, keep these documents ready before starting your application.

Here's how to complete your MSME or Udyam Aadhar Registration online:

1. Visit the Official Website: Go to the official MSME Registration website at udyamregistration.gov.in and click on the Above Udyam Registration Form.
2. Enter Aadhaar Number: Provide your Aadhaar number and click on "Validate & Generate OTP."
3. Verify with OTP: Enter the OTP received on your registered mobile number.
4. Fill Basic Details: Enter your name, social category, and PAN details.
5. Enter Business Information: Provide details about your business, including:
   • Name of organization
   • Type of organization
   • Business address
   • Date of establishment
   • Bank account details
6. Specify Business Activities: Select your business activities (manufacturing or service).
7. Provide Investment Details: Enter details about investment in plant & machinery and your annual turnover.
8. Submit Application: Review all information and submit your application.
9. Download Certificate: After submission, you can download your Udyam Registration certificate.

After applying, you might want to check your MSME Registration status or download your certificate. Here's how:

To Check Status:

• Visit the official Udyam Registration portal
• Click on "Check Your Udyam Registration Status."
• Enter your application number
• The portal will display your current status

To Download Certificate:

• Go to the Udyam Registration certificate download section
• Enter your registration number and mobile number
• Click on "Validate & Download."
• Your Udyam certificate registration will be downloaded as a PDF

You can verify your MSME Registration through the verification feature on the official portal.

MSME registration through the Udyam portal is completely free of cost, as per the government.

While registration itself costs nothing, connecting with MSME Registration consultants like RegisterKaro can provide valuable assistance for a nominal service charge.

Udyam Registration offers several tax benefits:

• Income tax exemption under Section 80JJA for eligible startups
• Lower GST registration threshold (optional registration up to ₹40 lakh turnover)
• Composition scheme eligibility with lower tax rates
• ITR filing threshold relaxation
• Reduced penalties for certain tax compliance delays.

These tax advantages make the purpose of MSME Registration even more valuable for small businesses.

After getting your Udyam or MSME Registration online, there are some ongoing compliance requirements:

• Update your information whenever there's a significant change in business
• Renew if you cross the MSME Registration limit
• Maintain proper books of accounts
• File regular GST returns (if applicable)
• Submit annual MSME returns where required
• Intimate changes in business activity or ownership

Failing to maintain compliance might result in losing your MSME status and its benefits.

The Udyam registration certificate is the official documentation of your business's MSME status.

The certificate contains a unique Udyam Registration Number - the key identifier for accessing all MSME schemes and benefits.