Lack of funds not letting you establish your small or medium-sized business? If so, the Government of India’s Udyam Scheme is exactly what you need. Scroll down to learn about the Udyam Certificate and more.
A majority of micro, small and medium businesses need financial assistance to flourish. With an Udyam registration certificate, they can get the financial backing they’re looking for. Interestingly, this scheme was earlier known as MSME or Udyog Aadhaar certificate. However, after the government’s notification on June 1st 2020, it is now called Udyam. Let’s get you started on the registration process.
Table of contents
- What is MSME Udyam Registration?
- Eligibility Criteria for MSME Udyam Certification?
- Udyam Certificate Registration Fee
- What’s the Process for Getting the Udyam Registration Certificate?
- Additional Information on the Registration Process
- Penalty in Case of Misrepresentation of Facts
- Essential Documents for MSME Udyam Registration
- Udyam Registration Certificate: Things to Keep in Mind
- How to Download and Print Udyam Registration Certificate?
- Latest Notifications on Udyam Registration
- FAQ’s about MSME Udyam Registration
What is MSME Udyam Registration?
Anyone who intends to set up a micro, small or medium-sized enterprise in India can opt for Udyam registration via the Ministry of MSME’s online portal. It is a self-declaration process that does not require the uploading of documents, certificates or proof.
Upon registration, businesses receive a permanent identification number called the Udyam Registration number. They also receive the “Udyam Registration Certificate” after the completion of the registration process.
Eligibility Criteria for MSME Udyam Certification?
Only enterprises categorised as micro, small or medium are eligible to apply for Udyam Certification for plant, machinery or equipment investment. Check out the details of the investment and annual turnover limits to avail this certification in the table below.
Enterprise Type | Investment Limit | Annual Turnover Limit |
Micro | Not more than Rs. 1 crore | Less than Rs. 5 crores |
Small | Not more than Rs. 10 crores | Less than Rs. 50 crores |
Medium | Not more than Rs. 50 crore | Less than Rs. 250 crores |
Udyam Certificate Registration Fee
There is no registration fee for the Udyam certificate. You don’t require paying any kind of fee to register your enterprise under the Udyam portal. Just complete the registration form with all the necessary details to complete the registration.
What’s the Process for Getting the Udyam Registration Certificate?
The following steps are included in the Udyam or MSME registration certificate process:-
Step 1: Visit the official Udyam Registration portal.
The URL of the portal is: udyamregistration[dot]gov[dot]in
Step 2: Select Registration Type
The enterprises who have not registered under MSME or Udyog Aadhaar need to select the first option that says
“For New Entrepreneurs who are not Registered yet as MSME or those with EM-II”
Step 3: Provide Aadhaar Details
- Enter Aadhaar number
- Fill in your name as on the Aadhaar Card
- Click on Validate and Generate OTP
Step 4: Complete the PAN verification process
- Choose your organisation type
- Enter PAN number
- Click on PAN Validation
Step 5: Complete Correspondence Details
After filling in the personal, PAN and Aadhaar Card details, you have to provide correspondence details. This includes the company or enterprise’s full postal address, its pin code, state, email address, phone number and district.
Step 6: Complete Bank Details
In this step, you need to fill in the details of an active bank account in the name of your enterprise. With the bank account number, you also have to enter the branch’s IFSC code. Don’t worry if you don’t have the IFSC code, you can easily search it online. You can also visit your bank branch to retrieve it.
Step 7: Fill in Enterprise Details
In this section of the registration form, you have to provide the mainline activities that your enterprise offers. This can be “manufacturing” or “services”. Additionally, you also have to provide the total number of employees and NIC Code for Activities details.
Once these particulars are complete, you will then enter the total amount you invested in the plant or machinery. This amount could be in lakhs or crores.
Step 8: DIC Selection and Declaration Acceptance
- This is the final step wherein you have to choose the District Industry Centre from the available drop-down list.
- This is followed by declaration acceptance and clicking on the button that says “Submit and Get final OTP”.
- Fill out the OTP and click on the “Submit” button once again.
Additional Information on the Registration Process
Given below is some more information about the Udyam Registration process that might be important for you.
- The Udyam certificate is issued online.
- The certificate comes with a dynamic QR code. Scanning the code opens the official GOI Udyam scheme web page allowing you access related to your enterprise.
- Once registered, there is no need for renewal.
- To get an Udyam or MSME registration certificate, you don’t have to pay any fee. The registration process is free of charge.
- If you need help with the registration, you can seek help from the single window systems at the District Industries Centre or Champions Control Rooms.
Penalty in Case of Misrepresentation of Facts
A lot of first-timers have this question about whether or not they have to pay any penalties for the Udyam registration certificate. The answer is yes. A penalty is charged if an individual attempts to suppress any of the self-declared facts. Misrepresentation of facts also leads to a penalty charge under Section 27 of the Act.
- Suppressing Self-Declaration: A fine Upto ₹1,000
- Misrepresentation of Facts: A fine between ₹1,000 – ₹10,000 depending on the information provided
Essential Documents for MSME Udyam Registration
One of the biggest advantages of the Udyam registration certificate is that there is no need to submit any documents, papers or proof.
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If you are not sure about what sort of benefits you would get from an Udyam certificate, check out the points below:-
- Your enterprise gets a basic and permanent identification number.
- The registration process is completely paperless. The entire process relies on self-declaration.
- An enterprise, once registered, does not have to register again.
- Regardless of how many activities comprise the service or manufacturing (or both) processes, they will be specified in a single registration. Besides the Udyam registration certificate, enterprises are advised to register on Government ePortal as well. This helps them receive regular updates and report issues with regard to payment problems.
- Registered micro, small and medium enterprises can benefit from schemes launched by the Ministry of MSMEs like Public Procurement Policy, Credit Guarantee Scheme, etc.
Other Advantages
- Lower rates of interest on loans from Banks
- The bank loans are collateral-free
- Enterprises attain protection against the delay of payments or delayed supply of material or service.
- Getting approvals, licences, and registration gets simpler
- Special reservation politics in the production or manufacturing sector
- Consideration or easy qualification for International Trade Fair
- Waiver for EMD, Stamp duty and registration
- Concession from electricity bills
- Reimbursement of ISO certification fee
- Exception of Direct tax laws and rules
- Patent and Barcode registration subsidy
- Eligibility for Industrial Promotion Subsidy (IPS) Subsidy Eligibility
Udyam Registration Certificate: Things to Keep in Mind
Here are the things you should be mindful of before starting your Udyam registration.
- You can get the Udyam Registration Certificate form on the official portal.
- Do not pay any fee for filing the registration form.
- Providing the Aadhaar number is mandatory for all enterprises registering for Udyam Certificate.
- Sole proprietorships will have to provide the Aadhaar number of the proprietor. Partnership firms will have to provide the Aadhaar number of the managing partner. HUF (Hindu Undivided Family) will have to provide the Aadhaar number of the Karta.
- If it is a Company, LLP, Trust or Society, the company’s authorised signatory or the organisation’s GSTIN along with PAN and Aadhaar will be required.
- Several companies register for Udyam with PAN. In such a case, any additional information from previous years when it did have the PAN number will be provided based on self-declaration.
- Enterprises cannot file more than once for Udyam Certificate Registration.
How to Download and Print Udyam Registration Certificate?
Follow these steps to download or print Udyam Registration Certificate:-
- Go to Udyam’s official registration portal – hudyamregistration[dot]gov[dot]in/Government-India/Ministry-MSME-registration.htm
- From the top menu, click on Print/Verify and select the Print Udyam Certificate option.
- Enter the Udyam application number.
- A new page will appear with two fields:
- Enter your Udyam Registration Number
- Enter Your Mobile Number (Filled in application)
- Then Select any one of the two OTP Options:
- OTP on Mobile as filled in application
- OTP on Email as filled in application
- Once you receive the OTP on your mobile or email, enter the same in the given field
- Click on the Download or Print option to complete the process.
Latest Notifications on Udyam Registration
Below are listed some of the latest notifications regarding Udyam Registration.
- The enterprises registered under UAM (Udyog Aadhaar) have to re-register on the Udyam Registration portal.
- Even the enterprises registered with any other enterprise under the MSME have to register themselves on the Udyam Registration portal.
- As per a notification by the Reserve Bank of India on August 21st 2020, not just enterprises but lenders also have to register themselves. The notification offers all the details on what lenders need to take care of.
- Another notification dated January 19th 2022, states UAM registration is open till the end of March 2022. The notification can be viewed on the official MSME website as well.
FAQ’s about MSME Udyam Registration
Q1: How can I get the Udyam registration certificate?
You can get an Udyam registration certificate after obtaining the registration form from the official Udyam website, filling out all the details and completing self-declaration. As soon as the Aadhaar is verified, you will attain the certificate.
Q2: Why is Udyam registration essential?
There are varied benefits of Udyam registration. These include acquiring government tenders easily, quick licences, registrations, and approvals, lower interest rates on bank loans and more.
Q3: How long does Udyam registration certification take to complete?
The registration takes only a few minutes to complete via the official Udyam portal. The verification process, however, takes 4-5 days after application submission. After verification, you will get an email notification along with your permanent registration number. The process sometimes takes around 2 weeks to complete.
Q4: Is getting the Udyam certificate mandatory?
Yes, MSMEs must get an Udyam certificate if they wish to avail of financial assistance from the government. It is compulsory even if small, micro or medium enterprises wish to benefit from other GOI programmes and schemes.
Q5: Can an enterprise have two Udyam registration certificates?
No enterprise can have more than one Udyam certificate. They don’t even have to renew their existing certificate.