If you are a business owner, it is a good idea to get your enterprise registered under Udyam. The process is easy, free, and fully online. In this article, we will explain everything you need to know about how to apply for Udyam Registration online in simple words.
What is Udyam Registration?
Udyam Registration is the official government registration for MSMEs in India. It was introduced on 1st July 2020 and replaced the older system of Udyog Aadhaar Registration. After registering under Udyam, businesses receive a unique identification number called the Udyam Registration Number (URN) and a certificate called the Udyam Registration Certificate.
The registration is recognized by the Ministry of Micro, Small and Medium Enterprises (MSME) and offers several advantages to businesses in terms of government tenders, loans, tax exemptions, subsidies, and other schemes.
Who Should Apply for Udyam Registration?
Udyam Registration is suitable for the following types of businesses:
- Micro Enterprises
- Small Enterprises
- Medium Enterprises
The classification of businesses under these categories is based on their investment in plant, machinery, and equipment, and annual turnover.
- Micro Enterprises: Investment up to Rs. 2.5 crore and turnover up to Rs 10 crore.
- Small Enterprises: Investment up to Rs. 25 crore and turnover up to Rs. 100 crore.
- Medium Enterprises: Investment up to Rs 125 crore and turnover up to Rs 500 crore.
Documents Required for Udyam Registration
The good part is that Udyam Registration does not require a lot of paperwork. The process is based mostly on self-declaration. Here are the basic details and documents you will need:
- Aadhaar Number of the business owner or proprietor.
- PAN (Permanent Account Number) of the business and the owner.
- GST Number (if applicable and available).
- Business Address and contact details.
- Bank Account Number and IFSC Code.
- Type of Business — Proprietorship, Partnership, LLP, Private Limited, etc.
- Investment Details in plant, machinery, or equipment.
- Annual Turnover Details.
Benefits of Udyam Registration
Once you get your Udyam Registration, your business can enjoy several advantages, such as:
- Easy bank loans at lower interest rates.
- Subsidies on government schemes.
- Priority in government tenders.
- Tax exemptions and concessions.
- Faster approvals for licenses and registrations.
- Special protection against delayed payments from buyers.
- Ease in applying for government schemes.
Step-by-Step Guide: How to Apply for Udyam Registration Online
Now, let’s go through the steps to register your business under Udyam Registration online.
- Visit Udyam Portal: Go to the official Udyam Registration website.
- Fill Business Details: Enter your business name, type, address, and bank details.
- Review and Submit: Check the details and submit the form.
- Pay Registration Fee: Choose a payment method and pay the fee.
- Get OTP: An OTP will be sent to your Aadhaar-linked mobile.
- Enter OTP: Type in the OTP to verify.
- Complete Registration: Your registration will be processed.
- Get Udyam Certificate: The certificate will be sent to your email.
How to Download the Udyam Certificate
You can also download your certificate by following these steps:
- Visit the Udyam Registration website.
- Click on the “Print/Verify” option.
- Enter your Udyam Registration Number and registered mobile/email.
- Generate OTP and download your certificate.
Validity and Renewal
Udyam Registration is valid for a lifetime. There is no need for renewal. However, you must regularly update your information on the portal if your business details change, such as turnover, address, or activity.
Common Mistakes to Avoid
When applying for Udyam Registration, keep these points in mind:
- Always use the correct Aadhaar and PAN number.
- Make sure your Aadhaar-linked mobile number is active.
- Do not enter wrong turnover or investment figures.
- Do not pay any money for registration.
- Always use the official government website.
Note: Now easily update udyam certificate through the Udyam portal
Conclusion
Udyam Registration is a simple, easy, and essential process for small businesses and startups in India. It offers several benefits, from easy loan approvals and subsidies to priority in government tenders. With an online application process that takes only a few minutes and requires minimal documents, every MSME should take advantage of this registration.
By following the clear steps provided above, you can successfully apply for Udyam Registration online and give your business a valuable official identity. If you own a business, do not delay — register today and unlock the opportunities offered by the Government of India for MSMEs.