Udyam Registration

Udyam registration is a certification specifically for MSME enterprises operating in India since 1st July 2020. It is another name for MSME Registration, and the Indian Ministry of Micro, Small, and Medium Enterprise replaced it with the new name.

Who can Apply?

Anyone wanting to establish an enterprise and avail of benefits from the Central or State Government and the Banking Sector can apply for an Udyam registration. 

Enterprise types for Registration

Your enterprise can fall under any of the below three categories:

Enterprise Types for Registration

Documents required for Udyam Registration

You would require the following documents for the registration.

  1. Pan card
  2. Aadhar card(12-digit number)
  3. Postal address with district and pin
  4. Bank account details of business

The Udyam Registration Process

For a New Business

If you are a new enterprise, you must register for the Udyam registration first. It is paperless and needs no document uploads.

Here are the steps to register:

  1. Apply for online Udyam Registration in Udyam Registration Portal.
  2. Upon application submission, you will receive the “Udyam Registration Number“(i.e., permanent identity number) assigned to your business.
  3. Once the registration is complete, your business will be issued an “Udyam Registration Certificate“.

Note: An aadhar number is mandatory for Udyam registration. Below are the details of the person who should produce the number concerning the firms:

  • Proprietor of a Proprietorship firm
  • Managing partner of a partnership firm
  • Karta of a Hindu Undivided Family
  • Authorised signatory of a Company or a Co-operative Society or a Trust or a Limited Liability Partnership

For an Existing Enterprise

Existing enterprises must register again and obtain the registration on the Udyam Registration Portal on or after 1st July 2020.

If there are enterprises registered before 30th June, they should consider the following:

  1. They will be reclassified based on the revised criteria notified under notification dated 26th June 2020.
  2. They shall be valid only till 31st March 2021.

How to update information on the Udyam Registration Portal

If you are an Udyam registered enterprise, you must update the information online on the Udyam Registration Portal. Otherwise, you will be liable for suspending your registration. 

Note: Any updation in the classification of your enterprise will result in a consequence like:

  1. If your updation is upward graduation, your enterprise will continue to maintain its status. It will then expire a year from the end of the year of the registration.
  2. If your updation is downward graduation, your enterprise will maintain its status until the end of the financial year. The changed status will start to appear from the substantial financial year.

How does Udyam Registration help businesses?

The Udyam registration would help you claim government-announced benefits for your businesses. It facilitates the development & promotion of enterprises through these schemes and benefits.

Other benefits include:

  • Acquirement of government tenders
  • Receival of affordable bank loans at low-interest rates
  • Access to tax allowances
  • An exemption of 1 per cent on the interest rate on Bank Overdraft
  • Easy gain of licenses, registrations and approvals 
  • A high preference for your business
  • Making of tariff, capital and tax subsidies
  • Low patent cost or industry set-up cost 
  • Electricity bill concessions
  • Fast dispute resolutions

FAQs on Udyam Registration

Are MSME and Udyam registration the same?

Yes. Udyam registration is another name for MSME Registration.

What makes MSME and Udyog Aadhar different?

MSME is an abbreviation for Micro, Small, and Medium Enterprise. In contrast, a Udyog Aadhaar is a twelve-digit Unique Identification Number, and the Indian Ministry of Micro, Small and Medium Enterprise provides it.

Both the MSME and Udyog Aadhar registration processes are very similar, but they are separate initiatives. Udyog Aadhar can be a simple way to obtain MSME registration. So, once you have your 12-digit Udyog Aadhar number, you can easily apply for MSME registration. To reap the most significant benefits for your company, you should register for both MSME and Udyog Aadhar.

Does the Udyam certificate have an expiry date?


You cannot find it explicitly stated in the Act or the Ministry's notifications that the Udyam Registration Certificate would be valid for a specific period.

Are Udyog Aadhar and Udyam numbers the same?

Udyog Aadhaar is the Micro, Small, and Medium Enterprise (MSME) Registration Process, also known as Udyog Aadhaar Registration. Udyam registration, on the other hand, is a simplified version of Udyog Aadhaar or MSME registration. And an Udyam number is a permanent identity number you receive when registering on the Udyam Registration portal.

How can I convert MSME to Udyam?

You can convert your MSME to Udyam by completing the Udyam registration process under the Udyam registration portal.

Is Udyam registration free of cost?

Yes. You do not need any fee or money for the Udyam (MSME) Registration process.

Is the Udyam certificate mandatory?

Yes. Suppose you are an enterprise registered with another ministry agency under the Department of Micro, Small and Medium Enterprises. In that case, you should register with the Udyam registration.

How many days does it take for the completion of Udyam registration?

After applying, four or five days is the approximate time to receive an email notification with your registration number. However, it may take more than 15 days to complete at times.

Who monitors Udyam registration?

The Ministry of MSMEs monitors the Udyam registration.

Categories: Registration