What is Udyam Registration?

Udyam Registration is the new and streamlined process of registering your micro, small, or medium enterprise (MSME) in India. It replaces the previous systems of Entrepreneur’s Memorandum (EM) and Udyog Aadhaar Memorandum (UAM) with a simplified, self-declarative, and paperless registration system.

The key features of Udyam Registration are:

• Classification of MSMEs: Enterprises are classified as micro, small, or medium based on their investment in plant and machinery/equipment and their annual turnover.
• Entirely Online and Paperless: The entire registration process is done online, with no requirement to upload any documents or physical paperwork.
• Self-Declaration: Enterprises can register themselves based on self-declared information, without the need for any proof or verification.
• Permanent Registration Number: Upon successful registration, enterprises are issued a unique and permanent “Udyam Registration Number” that serves as their identification.
• Dynamic QR Code: The Udyam Registration Certificate issued includes a dynamic QR code that can be used to access the enterprise’s details online.
• No Renewal Required: Once registered, there is no need to renew the Udyam Registration, as it remains valid until the enterprise’s details change.

Eligibility Criteria for Udyam Registration

As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, enterprises are classified as follows:

• Micro Enterprise: Where the investment in plant and machinery or equipment does not exceed ₹1 crore, and the annual turnover does not exceed ₹5 crore.
• Small Enterprise: Where the investment in plant and machinery or equipment does not exceed ₹10 crore, and the annual turnover does not exceed ₹50 crore.
• Medium Enterprise: Where the investment in plant and machinery or equipment does not exceed ₹50 crore, and the annual turnover does not exceed ₹250 crore.

It is important to note that the investment and turnover criteria are assessed on a self-declaration basis, and enterprises are not required to submit any physical documents or proof for registration.

The Udyam Registration Process

The Udyam Registration process is designed to be simple, hassle-free, and entirely online. Here’s a step-by-step guide to the process:

Visit the Udyam Registration Portal: Access the official Udyam Registration portal at udyamregistration.gov.in.

Gather the Required Information: Ensure that you have the following information ready:

• Aadhaar number of the proprietor, managing partner, karta of HUF, or authorized signatory of the enterprise
• PAN (Permanent Account Number) and GSTIN (Goods and Services Tax Identification Number) of the enterprise, if applicable

Fill the Registration Form: Complete the online registration form by providing the necessary details about your enterprise, such as the name, activity, investment, and turnover.

Self-Declaration: Confirm the accuracy of the information provided and proceed with the self-declaration.

Verification and Submission: Review the details, and if everything is correct, submit the registration form.

Receive the Udyam Registration Certificate: Upon successful registration, you will receive an “Udyam Registration Certificate” with a unique Udyam Registration Number. This certificate can be downloaded and printed from the portal.

It’s important to note that the entire Udyam Registration process is completely free of cost. You should not be required to pay any fee or make any payment to anyone during the registration process.

Benefits of Udyam Registration

Registering your enterprise under the Udyam Registration system can provide you with several benefits, including:

• Access to Government Schemes and Initiatives: Udyam-registered enterprises are eligible to avail various government schemes, subsidies, and support programs for MSMEs.
• Procurement Preferences: Udyam-registered MSMEs are given preference in public procurement, as per the Public Procurement Policy for MSEs.
• Priority Lending: Banks and financial institutions are required to prioritize lending to Udyam-registered enterprises, making it easier to access credit and financing.
• Easier Compliance: The Udyam Registration system simplifies compliance requirements for MSMEs, as it is integrated with various government databases such as income tax and GST.
• Increased Credibility: Having a Udyam Registration number can enhance the credibility and recognition of your enterprise, both domestically and internationally.

Existing Enterprises and the Transition to Udyam Registration

If your enterprise was previously registered under the EM-Part II or UAM system, you will need to re-register on the Udyam Registration portal. The key points to remember for existing enterprises are:

Mandatory Re-registration: All existing enterprises registered under EM-Part II or UAM must re-register on the Udyam Registration portal on or after July 1, 2020.

Reclassification of Existing Enterprises: All enterprises registered prior to June 30, 2020, will be reclassified in accordance with the new Udyam Registration criteria.

Validity of Existing Registrations: The existing EM-Part II or UAM registrations will remain valid only until December 31, 2021. After that, enterprises must have a valid Udyam Registration.

Enterprises Registered with Other Authorities: Enterprises registered with any other organization under the Ministry of Micro, Small and Medium Enterprises must also re-register on the Udyam Registration portal.

Frequently Asked Questions (FAQs)

Q1: Is Udyam Registration mandatory for all MSMEs?

Yes, Udyam Registration is mandatory for all micro, small, and medium enterprises in India. It is the only valid MSME registration system recognized by the government.

Q2: What if I already have an EM-Part II or UAM registration?

If you have an existing EM-Part II or UAM registration, you must re-register on the Udyam Registration portal. Your previous registration will remain valid only until December 31, 2021.

Q3: Can I have multiple Udyam Registrations for my enterprise?

No, an enterprise can have only one Udyam Registration. However, you can add multiple activities, including manufacturing or service or both, within a single Udyam Registration.

Q4: Do I need to renew my Udyam Registration?

No, there is no need to renew your Udyam Registration. Once registered, the registration remains valid until the enterprise’s details change.

Q5: Is there any cost or fee involved in the Udyam Registration process?

No, the Udyam Registration process is completely free of cost. You are not required to pay any fee or make any payments to anyone during the registration process.

Q6: Can I register my enterprise on any other portal or website?

No, you should only register your enterprise on the official Udyam Registration portal at https://udyamregistration.gov.in. Beware of any other portals or websites claiming to offer Udyam Registration, as they may not be legitimate.

Q7: What documents are required for Udyam Registration?

The Udyam Registration process is entirely based on self-declaration, and no documents or proof are required to be uploaded or submitted. All you need is your Aadhaar number and, if applicable, your PAN and GSTIN.