UDYAM REGISTRATION

What is Udyam Registration?

Udyam Registration is a government registration procedure launched by the Ministry of Micro, Small and Medium Enterprises (MoMSME) to classify and identify MSMEs in India. It is an improvement over the older Udyog Aadhaar system and provides an easy registration process that is paperless and has a single-window system. The Ministry manages the registration, which is entirely online on its Udyam portal. After registration, MSMEs are given a permanent Udyam Registration Number (URN) and a certificate, which can assist them in accessing a variety of government schemes, subsidies, and benefits.

What are the Benefits of Udyam Registration?

1. Feeble Access to Government Schemes: The government provides benefits such as subsidies, reduced interest rates, and credit guarantee schemes that can be availed by the registered MSMEs.
2. Collateral Free Loans: Udyam Registered businesses can avail collateral-free loans through schemes such as the Credit Guarantee Fund Scheme.
3. Tax and Tender Incentives: Udyam registered units are provided exemptions in direct tax laws and are given special attention in government tenders and procurement.
4. Guarantee Against Late Payments: Udyam MSMEs are legally supported under the MSMED Act to receive payments on time and can get interest on overdue payments.

Eligibility Criteria for Udyam Registration

• Any person aged 18 years and above can apply to Udyam registration.
• There is no formal education qualification needed to apply to the projects of cost up to ₹10 Lakhs in manufacturing sector and ₹5 Lakhs in service/business sector.
• In case the project cost is more than 10 Lakhs (manufacturing) or 5 Lakhs (service/business), the applicant should have passed at least 8th standard.
• Self Help Groups (SHGs) can apply, even BPL groups (provided they have not taken benefits under any other scheme).
• Registered Societies as per Societies Registration Act, 1860 need to apply.
• It can be applied by Production Co-operative Societies.
• This scheme is also applicable to Charitable Trusts.
• Existing units that are already registered and those that have availed subsidies under other Central or State Government schemes are not eligible.

MSME Classification

In India, the definition of the Micro, Small and Medium Enterprises (MSMEs) sector is done on the basis of investment made by the business in plant and machinery/ equipment, and the annual turnover. The classification criteria are the following:

1. Micro Enterprises

• The investment in plant and machinery or equipment is not more than INR 1 crore.
• The turnover is not more than INR 5 crore annually.

2. Small Enterprises

• The investment in plant and machinery or equipment is above INR 1 crore but not more than INR 10 crore.
• The turnover is above INR 5 crore but not more than INR 50 crore annually.

3. Medium Enterprises

• The investment in plant and machinery or equipment is above INR 10 crore and up to INR 50 crore.
• The turnover is above INR 50 crore but not more than INR 250 crore.

Such classifications have several uses such as the enjoyment of benefits and incentives offered by the government, credit facilities, and the government procurement programs. MSMES should ensure that they get themselves registered under the correct category to enable them to enjoy the benefits offered by the government.

Must Know

• Facilitation of Registration Process is a complete system organised by Government
• A company in regard to this process will be referred to as Udyam and its Registration Process will be referred to as Udyam Registration
• Registration will result in a permanent registration number.
• Once the process of registration is completed, an online certificate will be issued.
• This certificate will bear a dynamic QR Code upon which the web page on our Portal and information of the enterprise can be obtained.
• Registration will not have to be renewed.
• The registration process is absolutely free. There are no Costs or Fees to pay to any one.

Must Follow

• Registration of MSME is paperless, free of cost and self-declaration based.
• Registering an MSME does not need any documents or proof to be uploaded.
• Registration will be sufficient with only Adhaar Number.
• PAN & GST connected investment and turnover of enterprise information will be automatically extracted by the Government data bases.
• It is mandatory to have PAN and GSTIN (As per applicability of CGST Act 2017 and as notified by the ministry of MSME vide S.O. 1055(E) dated 05 th March 2021) to get Udyam Registration w.e.f. 01.04.2021.
• The persons having EM-II or UAM registration or any other registration, which is granted by any authority under the Ministry of MSME, will be required to re-register themselves.
• Only one Udyam Registration will be lodged by any enterprise. But, any number of activities such as manufacturing or service or both can be mentioned or added in a single Registration.

Udyam Registration Process

The following is the udyam registration process step-by-step:

Step 1: Go to Udyam Registration official site https://udyamregistration.gov.in

Step 2: On the new udyam registration tab, click on it and complete the online application form.

Step 3: Fill in the appropriate business information as well as personal information.

Step 4: Verify the application form properly and press the submit button to make your udyam application.

Step 5: Please note that you can now pay the fee of your udyam application.

Step 6: Once the payment is successful, one of our executives will get in touch with you regarding the further process and you will get the certificate on your registered mail within 2-3 working hours.

How Finline Helps You with Udyam Registration — In Just 3 Simple Steps

✅ Choose Your Business Type & Activity
Whether you’re launching a manufacturing unit, a service-based business, or a trading enterprise, Finline helps you pick your exact business category. Your project report is automatically tailored to support your Udyam registration process.

✅ Answer Simple, Guided Questions
Forget confusing paperwork. Just answer a few easy, step-by-step questions about your business idea, setup, and plans. Finline transforms your inputs into a detailed and compliant project report—no technical skills needed.

✅ Download Your Udyam-Ready Project Report
Get a professionally formatted, Udyam-friendly project report in PDF or Word format. Fully editable, structured, and ready to present to banks, departments, or MSME facilitation centres as supporting documentation.

Frequently Asked Questions- Udyam Registration 

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