Ask Our Expert!

About Udyam Registration Certificate In India

udyam registration zero cost

In July 2020, the Union Ministry of Micro Small, and Medium Enterprises introduced a new method of registration and categorizing MSMEs. It is known by the name of Udyam Registration Certificate. It allows existing and new businesses to sign up themselves through the MSME portal.

This is the designation of these ventures following the current guidelines:

Classification Investment In Plant, Equipment Turnover
Micro enterprise In less than INR 1 crore Not more than INR 5 crores
Small Enterprise In less than INR 10 crore Not more than INR 50 crores
Medium enterprise More than INR 50 crores Not more than INR 250 crores

Requirements For Eligibility of Udyam Registration Certificate

The government has eliminated the differences between businesses that are in the manufacturing sector and companies in the service sector. The only difference currently is the amount of investment and the turnover. Any business, whether existing enterprises or new, could be eligible for Udyam registration according to the table above.

Documents Required for Udyam/ MSME registration certificate

Copies of the Aadhar card Individuals, Proprietors, and Directors / Partners duly connected to an active mobile number
A copy of the PAN card Individuals, Proprietors, Partners Directors connected to Aadhar
MSME certification If you are already registered
PAN card Of the business
GST number Of the business
Contact details of the business Phone number, email ID, etc.
The details of the bank account The company or person; current or savings account
ITR statement including profits and losses
Information about the Divisions of the company If the company’s registration and the names of its units are the same, or different. If they are different, the details should be added.
Categorization of the individual SC, ST, OBC, etc.
Indicate the impairment If there are any
Information about the status you want to achieve As a manufacturer or a service provider, or both
Information about employees Number, details about their gender, etc.
Information about the willingness to take part Run Gem portal or not

Types of Udyam Registration Certificate for businesses

The MSME industry can be classified into two types based on the activities it does:

1. Manufacturing enterprises

Those enterprises involved in producing or manufacturing an item for other companies or end-use can be included under this sector. 

2. Service enterprises

These enterprises possess special skills and conduct their business. They may invest in small machinery.

Who can Opt for Udyam Registration Certificate?

Anyone who is planning to establish a micro, small or medium-sized enterprise can make an application for Udyam registration on the official portal for the scheme. There is no requirement to submit any documents. 

The entire process is determined by your self-declaration. After registration, the applicant will be issued an identity number. It is referred to as the “Udyam registration” number. The number is always valid. After the procedure is completed, the applicant will receive an electronic certificate called Certificate of Udyam registration.

  • Each unit that has GSTIN (Goods and Services Tax Identification Number) provided against one PAN will be considered to be one. The turnover and investment of these units are determined as the average of all the units.
  • The self-declaration you signed is valid until the 31st of March 2021. Then, GSTIN is mandatory.

Udyam Registration Certificate forms are accessible on the official website. There is no fee to complete the procedure. An aadhar number is required in this case. It is possible to follow the instructions on the website in this regard. When the partnership is limited-liability, trust, or society, it is required to provide the information of the official’s Aadhar as well as GSTIN.

If the company declares itself using the PAN number, self-declaration can make up for the lack of details.

It is not permitted for a venture to possess multiple Udyam registrations.

Any company that declines information provided in the self-declaration can be held accountable for the sanctions outlined within Section 27(1) of the MSME Act. Every venture registered with EM-Part II or UAM is required to obtain Udyam registration by or on July 1.

Udyam Registration Process in India

Udyam Registration Certificate portal is extremely simple and filling out the form is a breeze as well. The system has been redesigned, and it takes less time in comparison to the previous method that has been abandoned. This is crucial to realize that MSME registration is free of charge and there is no cost that the site will charge as an amount for the issuance of registration certificates. Since things are very efficient today, here is an easy step-by-step procedure to register under Udyam:

Step 1: Go to the official website –

First, to get your company registered online, you’ll be required to visit the official government website for Udyam Registration Certificate. Click on the next button for entrepreneurs who are new and not yet registered with Micro Small and medium enterprises. 

Step 2. In the next step, you must enter your details.

At first, the user is required to enter their name as well as their twelve-digit Aadhaar number. After that, you can click “Validate & Generate OTP.” Then, you will receive a second OTP to the mobile number associated with the Aadhar. Enter this OTP.

A Special Note For all companies, an Aadhar number is mandatory for Udyam registration of the owner, if the latter is the owner of a proprietorship company or the partner managing the business if it’s a partnership company and the Karta in the case of a Hindu Undivided Family (HUF) or the signatory authorized when it’s a Limited Liability Partnership, or a Society, Company and a Trust or Cooperative Society.

Step 3: Verification of PAN

It is necessary to select the type of firm before entering the PAN number, then click the confirm button. The validation of the PAN will occur.

In all companies which are owned by a company, the Aadhar number, along with the signature and PAN number is required for the Udyam Registration Certificate of the owner if they own a proprietorship company and the partner managing it if it’s an association firm or the Karta in the case of a Hindu Undivided Family (HUF) or the signatory authorized in the case of a Limited Liability Partnership, or a Society, Company and a Trust or Cooperative Society.

Step 4: Add the Details of the Correspondence next step.

Once the details are filled in, the next step is to enter the full postal address of the enterprise. Additionally information about Udyam Registration Certificate, information regarding the location of the business as well as its pin code of the state, email address, and mobile number.

Step 5: Enter your bank details

You will need to enter their company’s bank account number that is in use along with an IFSC code of the branch at which the account was opened. If the account isn’t registered with the IFSC code of the branch, you can find it in the passbook of the bank or on its website.

Step 6: Details of the Enterprise

One must mention the primary activity of their company, which could include “manufacturing” or “services”. It is mandatory to provide the name of all people employed by the NIC or National Industry Classification Code for the specific activities.

After filling in these details the next step that is needed is to input the entire amount of cash (in several thousand) that was put into the machine or plant.

Step 7. Select the DIC or District Industry Center and approve the Declaration

In the final stage of the application procedure, applicants must select the district or DIC industry center in the drop-down menu. You must then agree to these terms of service of the application and then click “Submit” and click the “Submit and Get final OTP” button.

Enter the OTP that was sent to a registered number then click “Final Submit”. When you click the ‘Submit and Receive Final OTP’ option, you will receive a registration number. Once all information has been thoroughly verified by the relevant authorities, the user will receive an electronic Udyam Registration Certificate that is sent to the registered email ID.

Benefits of Udyam Registration Certificate

The Udyam Registration for your business gives your business access to these benefits:

  • You are eligible for a no-collateral loan from banks of any kind.
  • You can ask for an interest rate reduction on loans through your bank or NBFC.
  • The government will lower the cost of claims.
  • Your business is eligible for concessions on the cost of electricity
  • You can receive a subsidy from the National Small Industries Corporation and other government entities.
  • Your company is eligible to receive reimbursement for the costs involved in obtaining ISO certification.
  • The Government of India has an excise exemption scheme to help you
  • Tax exemptions are available without trouble.

How can the government offer any assistance to boost the competitiveness of the manufacturing sector?

The Government runs a National Manufacturing Competitiveness Program to assist Udyam Registration Certificate in this respect. There are several schemes in place to help startups to improve their global competitiveness.

  • Promotion of Information and Communication Tools within the MSME sector
  • Lean Manufacturing Competitiveness Scheme for MSMEs
  • Design Clinics Scheme for MSMEs
  • Technology and Quality Up-gradation Support to MSMEs
  • Facilitating the Manufacturing Sector to be Competitive by using Quality Management Standards and Quality Technology Tools
  • A national campaign to raise awareness about Intellectual Property Rights
  • The setting up of the Mini Tool Room in PPP Mode
  • Assistance for Managerial and Entrepreneurial development of SMEs through Incubators
  • Code under the Market Development Assistance Scheme

Outline the procedure of what one should do in the event of a dispute or complaint.

If there is a discrepancy or there is a concern, the person can speak to the General Manager of the District Industries Centre. District Industries Centre through the district concerned, will be conducting a further inquiry for the verification of these particulars from Udyam Registration. Udyam Registration Certificate which is to be completed by the proprietor of the company.

Following that, the problem will be sent along with a few required comments to the Director, Commissioner, and the Secretary for Industry, who is in charge of that State Government. He will issue another notice to the enterprise concerned and following the presentation of the evidence under their findings and recommendations, the issue could be rectified or advised for authorities in the Ministry of the Micro, Small or Medium Enterprises, Government of India, to revoke this Udyam Certificate of Registration.

What Is Udyam Registration Number?

After getting Udyam Registration Certificate , an organization (referred to in the Udyam Registration portal) will be given a permanent identification number, which is called “‘Number of Udyam Registration.

The format of this UDYAM identification number is UDYAM UP-00-0123456. The UDYAM registration code to download your UDYAM certificate online or confirm whether you comply with your UDYAM registration.

The format for Udyam registration no. could be described in detail.

1. First 5 Letters – UDYAM

2. Next 2 Digits – STATE CODE

3. Next 2 Digits – CITY CODE

4. Next 7 Digits Unique Udyam Number assigned to a company as udyam aadhar registration.

How Can You Print/Download Udyam Certificate From The Government Portal?

You can determine your Udyam status of registration by following these simple steps:

  • Go to Udyam Registration Portal. 
  • Click on the Print Udyam Registration Certificate
  • You must enter the Udyam application number.
  • Enter the registered number or email address to be able to access the OTP.
  • Input the OTP on the application form.
  • You can verify the status and determine if your Udyam Certificate has been issued and your Udyam /MSME certificate downloaded