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MSME / Udyam Registration in India – Complete Guide with Process & Benefits
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What is Udyam Registration?
Launched by the Ministry of Micro, Small and Medium Enterprises, Udyam Registration (previously known as MSME Registration) replaced the old Udyog Aadhaar system on 1st July 2020. It was introduced to simplify and digitize the registration process for Micro, Small, and Medium Enterprises under the Atmanirbhar Bharat Abhiyan. This government initiative empowers businesses to gain formal recognition and access to exclusive financial benefits, subsidies, and schemes designed to support MSME growth.
Udyam registration is an e-certificate the government provides to the MSMEs in India. Though the Udyam registration is not mandatory, it is beneficial for the MSMEs to apply for this registration as it is required to avail of benefits that fall under the MSME category. The government provides the MSMEs with a unique identification number and an MSME recognition certificate when they obtain the Udyam registration. The validity of the Udyam registration is till the existence of the enterprise.
Whether you’re a manufacturer, trader, or service provider, Udyam Registration ensures your business is eligible for government incentives, bank loans, and procurement advantages—completely online and hassle-free.
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Eligibility for Udyam Registration
Enterprises with the below threshold limits, including trading, manufacturing and service enterprises, are eligible to apply for Udyam registration:
- Micro enterprises: Enterprises whose investment in machinery, plant or equipment is up to ₹ 2.5 crore and whose turnover is up to ₹ 10 crore.
- Small enterprises: Enterprises whose investment in machinery, plant or equipment is up to ₹ 25 crore and whose turnover is up to ₹100 crore.
- Medium enterprises: Enterprises whose investment in machinery, plant or equipment is up to ₹ 125 crore and whose turnover is up to ₹ 500 crore.
Benefits of Udyam Registration
- Udyam registration is a prerequisite to get the benefits of government schemes or programmes of the Ministry of MSME, such as the Credit Linked Capital Subsidy Scheme, Credit Guarantee Scheme, Public Procurement Policy, etc.
- Udyam portal is integrated with the income tax portal, GST identification systems and government e-marketplace.
- MSMEs having Udyam registration are eligible for priority sector lending from banks.
- MSMEs are allowed a Minimum Alternate Tax (MAT) credit to be carried forward for 15 years instead of 10 years.
- Udyam registration helps to obtain cheaper bank loans as the interest rate is low, i.e., around 1 to 1.5%.
- Receive protection against delayed payments through legal remedies under the MSME Development Act.
Features of Udyam Registration
- The entire registration process is 100% online, eliminating the need for physical paperwork or in-person visits.
- Based on Aadhaar and PAN authentication, ensuring fast, secure, and government-verified identity verification.
- Provides a lifetime valid MSME registration certificate, with no renewal or periodic re-registration required.
- Registration is linked with GST and Income Tax databases for automatic updates and compliance verification.
- Automatically classifies businesses as Micro, Small, or Medium based on turnover and investment data.
- Enables real-time data validation with MCA and Income Tax departments, enhancing registration accuracy and transparency.
Process of MSME / Udyam Registration
Step 1 – Visit Udyam Registration Portal
The process is entirely online and paperless.
Step 2 – Enter Aadhaar & PAN Details
The entrepreneur must enter Aadhaar and PAN for verification.
Step 3 – Fill Business Information
Provide details like name of enterprise, type of organization, bank account, and activity.
Step 4 – Classification Verification
Based on turnover and investment, the system auto-classifies as Micro, Small, or Medium.
Step 5 – Generate Udyam Certificate
On successful submission, the Udyam Registration Certificate is generated with a unique URN.
Documents Required
- Aadhaar number of business owner
- PAN of business or proprietor
- GSTIN (if applicable)
- Business address proof
- Bank account details
- Details of employees and investment in plant & machinery
Post-Registration Compliances
- File GST and Income Tax returns regularly
- Maintain proper books of accounts
- Update Udyam details in case of turnover or investment changes
- Renew other business registrations if applicable (FSSAI, IEC, etc.)
Who Should Apply for Udyam Registration?
- Startups and small businesses in manufacturing or services
- Traders and enterprises seeking easy access to credit
- Businesses applying for government subsidies and tenders
- Enterprises wanting protection against delayed payments
- MSMEs looking to enhance credibility with banks and clients
Why Choose MrBrandy for Udyam Registration?
- Quick and error-free filing of Udyam Registration
- End-to-end support from experts
- Guidance on availing MSME schemes and subsidies
- Trusted by 500+ businesses in India
- Dedicated customer support for all compliance needs
FAQs on MSME / Udyam Registration
Is Udyam Registration mandatory?
No, it is optional. However, businesses must register to avail MSME benefits.
How long does it take to get the Udyam certificate?
The certificate is generated instantly upon successful submission.
Can I register multiple businesses under one Aadhaar?
Yes, multiple businesses can be registered with the same Aadhaar, but each will have a unique Udyam number.
Do traders qualify for Udyam Registration?
Yes, both manufacturing and service sector enterprises, including traders, can apply.
Is there any government fee for registration?
No, it is free. Only professional assistance charges apply if taken.
Can a business update its Udyam details?
Yes, details like turnover, investment, or business activity can be updated online.