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Udyam Registration for MSME In India


What is UDYAM Registration?

In India's business and entrepreneurial landscape, the Udyam registration process is an important step towards the formalization and streamlining of small and medium enterprises (SMEs). Launched by the Ministry of Micro, Small, and Medium Enterprises (MSME), Udyam registration is an online process that gives businesses a unique identity and facilitates access to various benefits and incentives. 

Udyam Registration is a government initiative to facilitate the doing business of small and medium enterprises. It replaced the earlier MSME registration process and brought several improvements to make the registration process easier and more transparent.

Udyam Registration aims to provide MSMEs with various benefits and support from the government. These benefits may include access to credit at concessional rates, subsidies, incentives, and other support schemes. Registration under Udyam is also necessary for availing of various government schemes and incentives exclusively designed for MSMEs. 

To register under Udyam, a business must meet the eligibility criteria set by the government based on its investment in plant and machinery or equipment, and turnover. The criteria vary depending on whether the business is classified as a micro, small, or medium enterprise

Udyam Registration is entirely online, making it convenient for MSMEs to register without the need for physical documentation or visits to government offices. Registration under Udyam opens up various benefits and opportunities for MSMEs. These benefits may include easier access to credit, participation in government tenders, subsidies for technology upgradation, preferential treatment in government procurement, and various support schemes for MSME development. 

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Eligibility for Udyam Registration

  • Important Update: Effective July 1, 2024, the investment-based classification criteria for MSMEs has been simplified and is now based only on annual turnover:
  • Microenterprise: Annual turnover below Rs. 25 thousand
  • Small Business: Annual turnover Rs 25 lakh and Rs. 100 million.
  • Medium Company: Annual turnover exceeds Rs. 100 million.

Documents Required for the Udyam Registration

  • Aadhar card: 12-digit Aadhar number to authenticate the applicant (Mandatory).
  • PAN Card: Details of Applicant and Business Unit.
  • Document proving the address of the company: receipt of the real estate tax, rent, or payment payments (recommended).
  • Bank account details: the front page of canceled check or passport book with company details (recommended).

Importance of Udyam Registration

  • Access to Government Schemes and Grants: Registering with Udyam unlocks several government schemes and grants specifically designed to help MSMEs grow and develop.
  • Unsecured loans: Banks and financial institutions often offer unsecured loans to companies registered in Udyam, making it easier to get financial assistance.
  • Preference in public procurement: Udyam registered companies enjoy preferential rights in government procurement, which further increases business opportunities.
  • Subsidized electricity tariffs: Some states offer subsidized electricity tariffs to registered Udyam companies, thereby reducing utility costs.
  • More Credibility: Showing a Udyam Certificate will increase the credibility of your business especially if you participate in tenders

Process involved under Udyam Registration

  • Visit Udyam Registration Portal
  • Enter your 12-digit Aadhar number for instant verification
  • Fill the details like name, address, PAN, contact details, and company.
  • Enter your business region and state.
  • Select the appropriate category based on your annual turnover.
  • Enter accurate bank account information for future loan applications or repayments.
  • Fill in previous enrollment details (EM-II or Udyog Aadhar) if applicable.
  • Report the existence of your company and submit a statement with a digital signature.
  • Fill out the verification via OTP sent to your registered mobile number.
  • After successful verification, download your official Udyam registration certificate directly from the portal.


In conclusion, Udyam registration is a crucial step for companies that want to establish themselves in the MSME sector in India. It not only opens doors to many benefits and incentives offered by the government but also gives businesses a unique identity. The process is simplified and uploading the Udyam certificate is easy, ensuring that businesses can quickly reap the benefits of MSME registration. If you have not yet registered your business, consider the long-term benefits and take the necessary steps to register with Udyam today.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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