MSMEs (Micro, Small, and Medium Enterprises), also known as small-scale industries (SSI), are industries that promote employment for a large number of people across India. The growth of these industries contributes significantly to the country’s economic development, thus forming the backbone of India’s economy.
Udyam registration helps MSMEs avail themselves of various benefits and schemes provided by the government. By utilizing these schemes, MSME sectors can operate their businesses more cost-effectively and stay competitive with other firms.
For new entrepreneurs registering for Udyam, the process is simple. They just need to visit the official Udyam registration portal and enter details such as their name and Aadhaar number. If they have a PAN number, they should enter it as well. The portal will then automatically fetch PAN information from the government database. Other details, such as ITR information, the name of the industry, the date of establishment, etc., must be entered manually by the entrepreneur.
Only sole proprietors are allowed to apply for a Udyam certificate without a PAN number. Other business types, such as Partnership firms, Private Limited Companies, Public Limited Companies, one-person companies (OPC), and LLPs, are required to have a PAN card for registration.
The registration process without a PAN is similar to the one with a PAN card. The proprietor needs to select ‘No’ when asked “Do you have a PAN?” and then fill in all the required details. However, as per government regulations, having a PAN card and GSTIN has been mandatory since April 1, 2021. Therefore, any proprietor who registered without a PAN before this date is required to re-register with valid credentials.
After entering all the necessary information in both cases, the entrepreneur must click on ‘Submit' and generate OTP. ’ Once the OTP is verified, a confirmation message will appear, and a reference number will be issued. The registration will then go through a verification process, which may take a few days, after the Udyam certificate is issued.
MSME registration offers a variety of benefits to business owners:
Bank loans become easier to access and come with a lower interest rate (up to 1.5% less than regular loans).
Businesses can be fully exempted from direct tax laws in certain conditions.
Entrepreneurs receive concessions and rebates when applying for patents or setting up new industries.
MSMEs can avail of significant discounts on electricity bills.
Government tenders become more accessible, as the Udyam Registration portal is integrated with
the Government e-Marketplace (GeM), making it easier to participate in e-tenders and public procurement.
When MSMEs participate in international trade fairs or exhibitions, they can receive financial assistance and other benefits from the Government of India.
A One-Time Settlement scheme is available for MSMEs in case of pending dues or non-paid amounts.
As per the notification issued by the Government of India on 1st July 2020, the term ‘Udyog Aadhaar Memorandum’ has been officially changed to ‘Udyam’, and the registration process will now be referred to as ‘Udyam Registration’.
According to the Ministry of MSME, every business unit previously registered under MSME/Udyog Aadhaar will be considered valid only up to 31st March 2021. Therefore, these MSME enterprises must reregister under the new Udyam system on or before this date.
It has now been made mandatory to provide a PAN number and GSTIN at the time of Udyam registration:
All business entities including Partnership Firms, Private Limited Companies, Public Limited Companies, One Person Companies (OPC), and Limited Liability Partnerships (LLPs) must possess a valid PAN and GSTIN, in addition to their Aadhaar number, for successful registration.
Starting from 1st April 2021, even Sole Proprietors are required to have a PAN card and GST registration to register under Udyam. Therefore, proprietors who have not yet done so must apply for PAN and GST before this deadline to ensure compliance and avoid disruptions in availing government benefits.
Start by visiting the official Udyam Registration portal.
Complete the application form by entering your basic business details, including:
Applicant’s Full Name
Mobile Number
Email Address
Complete Office Address (State, District, and Pin Code)
Name of the Business/Enterprise
Once all details are filled in, carefully review the information to ensure everything is accurate. After verification, click the “Submit” button to proceed.
After submitting the application, pay the registration fee online through your preferred mode—credit/debit card, net banking, or UPI. Once payment is successful, one of our executives will contact you to verify the OTP sent to your registered mobile number or email ID to move forward with the registration.
Once your application is successfully verified, you will receive a unique Udyam Registration Number (URN). Using this URN, you can download your Udyam Registration Certificate directly from the portal. This certificate is essential for MSMEs to access various government benefits, subsidies, schemes, and incentives.
The process of registering your MSME (Micro, Small, and Medium Enterprise) is completely online. The sooner you apply, the faster you can access the various government benefits and schemes available to registered enterprises.
An enquiry form is available on eudyogaadhaar.org, where you can get in touch with our executives for any assistance or queries related to Udyam Registration.
For further support, you can also reach out to us through the Contact Us page on our website. We are here to help you complete your registration quickly and efficiently. You can contact our customer support team 24/7 for assistance.
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Lokesh Rawat, From Madhya Pradesh
Recently applied MSME Certificate
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