In today’s competitive business landscape, it is crucial for small and medium-sized enterprises (SMEs) to leverage government initiatives that streamline operations, offer benefits, and provide formal recognition. One such initiative by the Government of India is Udyog Aadhar registration, now known as Udyam registration. This initiative is designed to support the growth and development of micro, small, and medium enterprises (MSMEs) nationwide. Udyam Registration also referred to as MSME Registration, is the updated process for registering MSMEs introduced by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. Alongside this new registration process, the Ministry also updated the MSME classification criteria.

IndiaFilings is your trusted partner when it comes to simplifying the Udyam Aadhaar registration process. Our dedicated team of experts is well-versed in the intricacies of the Udyam Aadhar registration online process and can help your business secure its Udyam Certificate and Registration Number swiftly and seamlessly. 

What is Udyam Registration?

Udyam Registration is an official process initiated by the Ministry of Micro, Small, and Medium Enterprises (MSMEs), Government of India, for the formal registration of micro, small, and medium enterprises (MSMEs). Introduced on July 1, 2020, it replaced the earlier Udyog Aadhar Memorandum (UAM) system. The Udyog Aadhar/Udyam registration is designed to classify enterprises based on their investment and turnover. As per the new classification metrics, all Micro, Small, and Medium Enterprises (MSMEs) in India are collectively known as MSME. Entrepreneurs can apply for MSME Registration online, and upon successful completion, the enterprise is assigned a permanent Udyam Registration Number and receives an e-certificate known as the Udyam Registration Certificate. This online, self-declaration-based Udyam Aadhar registration process aims to streamline access to government benefits.

MSME Registration Online Benefits

Benefits of having a Udyam Registration Number for your business include:

• Special Preference in Government Tenders: Registered Udyam enterprises receive preferential treatment in government procurement processes, enhancing their chances of securing contracts.
• Access to Collateral-Free Bank Loans: Udyam Registration, along with the Udyam registration certificate, facilitates access to bank loans without the need for collateral or mortgage, making it easier for MSMEs to secure financing.
• Interest Rate Exemption: Udyam Aadhaar Registered businesses are eligible for a 1% interest rate exemption on bank overdrafts (OD), reducing their borrowing costs.
• Eligibility for Tax Rebates: Udyam Aadhar registered enterprises can benefit from various tax rebates, providing significant tax savings.
• Priority in Licensing and Certification: Udyam Aadhaar Registration offers priority consideration for obtaining government licenses and certifications, streamlining business operations.
• Tariff and Capital Subsidies: Registered MSMEs with MSME Udyam certificate are eligible for tariff subsidies as well as tax and capital subsidies, lowering their operational costs.
• Electricity Bill Discounts: Udyam enterprises receive discounts on electricity bills, reducing their utility expenses.
• Protection Against Delayed Payments: Udyam Aadhar Registration offers protection against delayed payments from buyers, ensuring better cash flow management.
• Trademark and Patent Discounts: Registered businesses can avail of a 50% discount on government fees for filing trademarks and patents, making intellectual property protection more affordable.
• Expedited Dispute Resolution: Udyam enterprises benefit from faster resolution of disputes, minimizing business interruptions and legal costs.

Who can Apply for Udyam Registration?

Any individual who intends to establish a micro, small, or medium enterprise can file for Udyog Aadhar/Udyam Registration online through the Udyam Registration portal. Eligible applicants for MSME registration online include:

• Proprietorships
• Hindu Undivided Family (HUF)
• Partnership Firm
• One Person Company (OPC)
• Private Limited Company
• Public Limited Company
• Producer Company
• Limited Liability Partnership (LLP)
• Any Association of Persons
• Co-operative Societies

No enterprise is permitted to file more than one Udyam Registration and MSME/Udyam Certificate. However, a single Udyam Registration can encompass multiple activities, including manufacturing, services, or both, ensuring comprehensive coverage under one registration.

Eligibility Criteria for Udyam Registration

To be eligible for Udyam registration and get a Udyam registration certificate, your business must fall under the category of a Micro, Small, or Medium Enterprise based on specific investment and turnover thresholds as outlined below:

Businesses meeting these criteria can apply for Udyam Registration to avail of various benefits provided under the MSME schemes.

Revised Classification Criteria for MSMEs

In the Union Budget 2025, the government announced a significant revision in the classification criteria for Micro, Small, and Medium Enterprises (MSMEs). It is stated that the investment limit for MSME classification has been increased by 2.5 times, while turnover limits have been doubled. This decision is expected to enhance the confidence of MSMEs, fostering growth and generating employment opportunities. 

In the table below, we have provided the revised classification criteria made in Union Budget 2025,

When to Opt for Udyam Aadhar Registration?

While applying for Udyam Registration is voluntary and not compulsory for entrepreneurs, it is highly recommended for most businesses to register shortly after their establishment. This early MSME registration online allows businesses to take full advantage of the various government benefits available to MSMEs.

Documents Required for Udyam Registration

When it comes to the documents required for the Online Udyam Aadhar Registration process, it is worth noting that the application is primarily based on self-declaration. As such, uploading any additional documents during the MSME registration online procedure is unnecessary. Applicants must only provide their 12-digit Aadhaar Number, PAN (Permanent Account Number), and Bank Account details of the business to complete the registration process efficiently.

• PAN Card Number: The Permanent Account Number (PAN) of the business or the proprietor.
• Aadhaar Number: The Aadhaar card number is required as follows:
  • Proprietorship Firms: Aadhaar card of the proprietor.
  • Partnership Firms: Aadhaar card of the managing partner.
  • LLPs, Companies, Cooperative Societies, or Trusts: Aadhaar card of the authorized signatory.
• GST Number (if applicable): The GST number is mandatory only for enterprises that require GST registration.

Ensure you have the listed documents before proceeding to the registration and Udyam certificate download process. Get IndiaFilings expert support to streamline the registration process with reasonable MSME registration charges. 

How to Get Udyam Registration Online?

Micro, Small, and Medium Enterprises (MSMEs) can easily obtain Udyam Registration online by following a specific process on the official Udyam registration portal. Here’s a step-by-step process of Udyam registration online:

• Step 1: Visit the official Udyam Registration Portal.
• Step 2: Click on the option “For New Entrepreneurs who are not registered yet as MSME or those with EM-II” available on the homepage.
• Step 3: Enter the Aadhaar Number and Name of the Entrepreneur in the specified boxes, then click on “Validate & Generate OTP.”
• Step 4: An OTP will be sent to your mobile number linked with the Aadhaar. Enter the OTP and click “Validate.”
• Step 5: After Aadhaar validation, you’ll be redirected to the PAN verification page. Enter your Type of Organisation and PAN Number, and click “Validate.”Also, specify whether you’ve filed the previous year’s ITR and if you have a GSTIN.
• Step 6: Fill in the Udyam Registration application form, including details like:
  • Entrepreneur’s name and mobile number
  • Enterprise name and address
  • Plant/unit location
  • Enterprise status
  • Bank details
  • Type of activity and NIC code
  • Number of persons employed
• Step 7: Provide details regarding:
  • Investment in plant and machinery/equipment
  • Annual turnover details
  • Then, select the declaration and click Submit to receive the final OTP.
• Step 8: Enter the final OTP to complete the registration. The Udyam e-registration certificate will be sent to your registered email.

By completing these steps, MSMEs can efficiently register under Udyam and avail various benefits, schemes, and incentives offered to registered enterprises under the MSME framework.

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Maria Stanly

aware@srvibes.com

http://www.srvibes.com

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