What is Udyam Registration?

Udyam Registration is a free and paperless process for registering Micro, Small, and Medium Enterprises (MSMEs) in India through the official Udyam portal. It is mandatory for all MSMEs as of 1 July 2020.

Upon successful registration, businesses receive a permanent identification number, called the Udyam Registration Number (UAM). The Udyam Registration Certificate is sent directly to the registered email ID.

MSME Udyam Registration Benefits

Access to Government Schemes

Udyam Registration lets MSMEs access various government schemes like Credit Guarantee, Capital Subsidy, and Public Procurement. These help in getting support, incentives, and business growth opportunities.

Financial Assistance

• Low-Interest Loans under CGTMSE
• Subsidies on electricity and industrial promotion
• Tax Relief including excise exemptions
• Discounts on trademark and patent fees

Seamless Integration

Udyam is linked with portals like GST, Income Tax, and GeM, making compliance and document handling easier for businesses.

Priority Sector Lending

MSMEs get recognised under priority lending by banks, making it easier to get loans and credit at better terms.

Extended MAT Credit

MSMEs can carry forward MAT credit for 15 years (instead of 10), offering more tax relief and improving fund availability.

Free ISO Certification

Eligible MSMEs get free ISO certification, helping improve brand trust and market value.

Waiver of Security Deposits

Udyam-registered MSMEs don’t have to pay heavy security deposits in government tenders, improving cash flow.

Protection from Delayed Payments

MSMEs can file complaints if buyers delay payments, ensuring better payment cycles.

Global Exposure

Udyam helps MSMEs join international trade fairs and exhibitions, giving them access to global markets.

Simplified Licensing

Licensing becomes quicker and easier for registered MSMEs, cutting down on paperwork and approvals.

Who Can Apply for Udyam Registration?

Udyam Registration is open to all Micro, Small, and Medium Enterprises (MSMEs) involved in manufacturing, processing, or providing services. Both new and existing businesses can apply to access government support and schemes.

Entities eligible for Udyam registration include:

• Proprietorships
• Hindu Undivided Family (HUF)
• Partnership Firms
• One-Person Companies (OPCs)
• Private Limited Companies
• Limited Companies
• Producer Companies
• LLPs (Limited Liability Partnerships)
• Associations of persons
• Cooperative Societies

Eligibility Criteria for MSME Registration

To qualify for Udyam Registration, a business must meet the investment and turnover thresholds for MSMEs:

• Micro: Investment ≤ ₹1 crore and Turnover ≤ ₹5 crore
• Small: Investment ≤ ₹10 crore and Turnover ≤ ₹50 crore
• Medium: Investment ≤ ₹50 crore and Turnover ≤ ₹250 crore

Additional Conditions:

• Business must operate in India
• Should not be formed by restructuring or splitting an existing business
• Manufacturers must have a valid GSTIN
• DPIIT-recognised startups are also eligible

Special GST Provisions for MSMEs

• Goods (Intra-State): No GST registration needed if turnover ≤ ₹40 lakh (₹20 lakh in special states)
• Services (Intra-State): No GST needed if turnover ≤ ₹20 lakh (₹10 lakh in special states)
• Services (Inter-State): No GST needed if turnover ≤ ₹20 lakh (₹10 lakh in special states)

Key Features of Udyam Registration

• Entire process is free, online, and paperless
• Aadhaar is the only required ID to start
• PAN & GST data are fetched automatically from government databases
• Integrated with Income Tax & GST portals for real-time validation
• PAN & GST are mandatory from April 1, 2021
• Existing EM-II or UAM holders must re-register under Udyam
• Only one Udyam Registration is allowed per business

Documents Required for Udyam Registration

Udyam Registration is fully digital and needs only basic documents:

• PAN Card of the business
• Aadhaar Number of the authorized person:
  • Proprietorship: Aadhaar of the proprietor
  • Partnership: Aadhaar of managing partner
  • HUF: Aadhaar of Karta
  • LLP/Company/Trust: Aadhaar of authorised signatory
• GST Number (if registered under GST laws)

Note: GSTIN is not mandatory for all. Only GST-registered businesses need to provide it.

When to Apply for Udyam Registration?

Though not mandatory, it’s strongly recommended to apply for Udyam registration soon after setting up your business. Early registration helps MSMEs unlock government benefits, loans, and subsidies.

Udyam Registration Process

The process is 100% online and Aadhaar-based. Here's a simplified step-by-step guide:

1. Visit the Udyam portal.
2. Click ‘For New Entrepreneurs not yet registered’.
3. Enter Aadhaar number and entrepreneur's name, then click ‘Validate & Generate OTP’.
4. Enter OTP and click ‘Validate’.
5. On PAN validation page, enter organisation type, PAN, and confirm ITR and GSTIN status.
6. Fill business info: name, address, contact, plant details, bank details, business activity, and employee count.
7. Enter investment and turnover details, accept declaration, and click Submit.
8. Enter final OTP, and your application is complete.

Sperso Filings Completes the Process in 4 Easy Steps

• Talk to an Expert
  Get free consultation and guidance from our MSME registration specialists.
• Submit Required Documents
  Share your Aadhaar, PAN, and business details—100% online.
• We Handle the Filing for You
  Our team fills and submits your Udyam application on your behalf.
• Receive Your Udyam Certificate
  Get your official Udyam Registration Certificate in your inbox.

Udyam Registration for Existing Enterprises

All enterprises registered under EM–Part II or UAM must re-register on the Udyam portal from 1 July 2020.

Registrations before 30 June 2020 will be reclassified under the new MSME criteria.

These earlier registrations were valid only until 31 December 2021.

Any business registered with other MSME bodies must now register under the Udyam system.

Government Schemes for Udyam-Registered MSMEs

Udyam registration enables access to exclusive government schemes focused on MSME growth, technology, funding, and global reach. Below are key initiatives:

• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
  Jointly by GoI & SIDBI, this scheme offers collateral-free loans up to ₹5 Cr with an 85% guarantee.
  In 2023, guarantees worth ₹1.46 Lakh Cr were issued, supporting over 67 lakh MSMEs.
• Prime Minister Employment Generation Programme (PMEGP)
  Offers loans up to ₹25 Lakh (manufacturing) and ₹10 Lakh (services) with margin money subsidy.
  Since 2008, supported 9.29 lakh micro-enterprises, creating 78+ lakh jobs.
• Raising and Accelerating MSME Performance (RAMP)
  Launched in 2022 with World Bank aid, with a ₹6000 Cr budget for 5 years.
  It supports global access, sustainability, and women-led MSMEs, benefiting over 5.5 lakh units.

What is the Fee for Udyam Registration?

Udyam registration is completely free on the official government portal.

However, if you opt for professional services (like Sperso Filings), a service fee may apply for expert handling, documentation, and faster processing—ensuring accuracy and peace of mind.

NIC Code for Udyam Registration

The NIC Code (National Industrial Classification Code) is crucial during Udyam registration as it categorizes the business activity of an MSME.

It helps identify the industry and ensures businesses get the right government support based on their sector.

Choosing the correct NIC code is important—it aligns your business with relevant schemes and benefits, enabling accurate data tracking and industry compliance.

Cancellation of Udyam Registration

Businesses can cancel their Udyam Registration via the official portal. Here’s how:

1. Visit the Udyam Registration Portal
2. Click ‘Update Details’ > ‘Update/Cancel Registration’
3. Enter your URN and registered mobile number
4. Generate OTP and complete validation
5. View your certificate and choose ‘Cancel’

Renewal of Udyam Registration

As per government guidelines, MSMEs must renew and update their registration annually. This includes updating ITR and GST details to maintain eligibility for benefits and ensure proper classification.

Step-by-Step Renewal Process

1. Go to the Udyam or MSME portal
2. Click ‘Update Details’ > ‘Update/Cancel Registration’
3. Enter your URN and mobile number
4. Complete OTP verification
5. View your MSME certificate
6. Click ‘Edit’ and update fields with latest info
7. Fill in ITR, turnover, and other key details
8. Submit the form to complete the update

Note: Annual updates are mandatory to retain MSME status and access government benefits.

Download Updated MSME Certificate

• Click ‘Print Certificate’ on the top menu
• Or go to ‘Print/Verify’ on the homepage
• Enter your URN to download the latest certificate

How to Check the Status of Udyam Registration

To track your Udyam Registration:

1. Step 1: Visit the Udyam portal
2. Step 2: Click Track Application Status
3. Step 3: Enter your Application Number and Mobile Number
4. Step 4: Solve captcha and click Track Status

Status will show as ‘In Process’, ‘Approved’, or ‘Rejected’, along with remarks.

Udyam Registration Certificate

The Udyam Registration Certificate is issued to MSMEs upon successful registration. It allows businesses to claim subsidies, benefits, and schemes offered by the government.

How to Download:

1. Visit Udyam portal
2. Go to ‘Print/Verify’ > ‘Print Udyam Certificate’
3. Enter URN and mobile number
4. Validate OTP
5. Download the certificate

How to Verify Udyam Certificate

1. Visit Udyam Portal
2. Click ‘Print/Verify’ > ‘Verify Udyam Registration Number’
3. Enter URN and captcha
4. Click ‘Verify’

Update or Cancel Udyam Registration

Log in with your URN and mobile number.

• Go to ‘Update/Cancel Udyam Registration’
• Update contact info, address, or documents

Udyam Registration Number (URN)

The URN is a 19-digit unique ID issued to MSMEs post-registration.

Example: UDYAM-XX-00-0123456789

How to Retrieve URN

1. Visit Udyam portal
2. Click ‘Print/Verify’ > ‘Forgot Udyam/UAM No’
3. Choose OTP method and enter contact info
4. Validate OTP
5. URN will be sent to your mobile/email

UAM Number in Udyam Certificate

The UAM number isn't listed on the certificate but can be retrieved:

1. Go to ‘Print/Verify’ > ‘Forgot Udyam/UAM No’
2. Enter mobile/email and validate OTP
3. UAM number will be displayed

Udyog Aadhaar Number

The Udyog Aadhaar Number is a 12-digit ID for MSMEs registered before Udyam.

How to Find:

1. Visit Udyam portal
2. Go to ‘Print/Verify’ > ‘Forgot Udyam/UAM No’
3. Choose OTP method and enter contact details
4. Validate OTP to view UAM number
Udyog Aadhaar Download Process
1. Visit Udyam portal
2. Go to ‘Print/Verify’ > ‘Print Udyog Aadhaar’
3. Enter Aadhaar and mobile number
4. Validate OTP
5. Download certificate (PDF)

Get Udyam Registered with Sperso Filings

• Eligibility Check
  We help you verify whether your business qualifies as an MSME under current government norms.
• Seamless Online Process
  Sperso Filings simplifies Udyam registration with a 100% digital process—quick, easy, and paperless.
• Expert Assistance
  Our dedicated professionals provide end-to-end support, from document collection to certificate issuance.
• Full Transparency
  Stay informed at every step with clear updates on your application status and compliance requirements.

Case Study: Growth of UDYAM-Registered Micro Businesses in India (FY22 vs FY20)

Background:

India’s MSME ecosystem has witnessed rapid transformation post the launch of the UDYAM portal. A comparison between FY20 and FY22 highlights this progress.

Key Insights:

• Micro Business Surge:
  Registrations for micro businesses grew 2.2x from FY20 to FY22, led by Himachal Pradesh, followed by Madhya Pradesh, Bihar, Uttarakhand, and Haryana.
• Small & Medium Enterprise Trends:
  While micro businesses saw major growth, small businesses surged in Bihar, and medium businesses grew notably in Jharkhand.
• Finance Shift:
  Among 10,000 micro businesses surveyed, gold loan dependency dropped, while term loans increased—indicating a move to formal lending channels.
• Cash Flow & Optimism:
  Micro enterprises faced more payment delays, whereas small businesses showed greater confidence in Q3 2023 in areas like demand and investments, despite higher lending rates.
• Job Creation:
  UDYAM-supported MSMEs created 1.6x more jobs in FY23 compared to FY20. Maharashtra, Tamil Nadu, and UP led in registrations, while Karnataka, MP, Telangana, and AP showed strong employment impact.

Global Comparison of MSME Landscape (QUAD Nations)

MSME Volume & Presence:

• India has the highest number of MSMEs (63.4 million), but their share in total businesses is lower compared to the US, Australia, and Japan.

Employment Contribution:

• India: 40% of jobs come from MSMEs—largest workforce impact.
• USA: 46.4% of total jobs are in small businesses.

GDP Share:

• Australia & Japan: Lead with 54% and 53% MSME contribution to GDP.
• India: Trails with 35.5% MSME GDP share.

Export Contribution:

• Australia: Tops at 59% MSME export share.
• India: 45.03%, ranking second.
• Japan: Lowest at 21.4%.

Summary:

• India: Massive MSME base and job contribution, but lags in GDP and exports.
• Australia: Strongest MSME performance in GDP and exports.
• USA: High small business density and export impact.
• Japan: High GDP share from MSMEs but limited export role.

Key Takeaway:

India's MSMEs are strong job creators but need policy support for improved global competitiveness and greater contributions to GDP and exports.