Starting your career by starting a new business is a very big step. If you are a new entrepreneur in India, then Udyam registration is the first and most important step that you should take. Due to this, your business gets an official identity, and many government benefits and schemes are also available.
Through this article, we will learn about Udyam registration and why it is so important. We will also share simple and practical tips that will help you register your business easily.
What is Udyam Registration
Udyam registration is a government registration process for micro, small, and medium enterprises in India. It was introduced in the Ministry of Micro, Small, and Medium Enterprises. Its objective is to make the registration process very simple, and small businesses can easily be officially recognized.
Once you register, you receive a unique Udyam registration number and certificate, which serves as proof of your MSME status.
Here are the benefits of registration for every new entrepreneur
Early registration helps build creativity and trust with the customers and government departments.
Who can apply for Udyam registration?
You can apply for Udyam registration only if your business falls under these categories.
- Partnership Firm
- Private Limited Company
- Trust or Society
- Sole Proprietorship
- Limited Liability Partnership
- One Person Company
- Cooperative Society
Whether you're a manufacturer, service provider, or trader, Udyam is open to all.
Eligibility Criteria
Your business must fall within these limits:
MSME Type | Investment Limit (Plant/Machinery) | Annual Turnover Limit |
Micro | Up to 1 crore | Up to 5 crore |
Small | Up to 10 crore | Up to 50 crore |
Medium | Up to 50 crore | Up to 250 crore |
Tip: If you’re just starting, you’ll most likely fall under the micro or small category.
Documents Required for Udyam Registration
Good news! Udyam registration is paperless, and no physical documents need to be submitted. But you should keep the following details ready:
- Aadhaar number of the business owner
- PAN card of the business or individual
- Mobile number linked with Aadhaar
- Business address and bank details
- Details of business activities (your business falls into which category, manufacturing or services)
Tip: Make sure the Aadhaar number is active and linked with your mobile number for OTP verification, and it is crucial for easy registration
Step-by-Step Process for Easy Udyam Registration
- Visit the Official Udyam Registration Portal
Use only the official and authentic site
- Choose the Correct Form
There are two main options:
- For New Entrepreneurs (who don’t have URN)
- For those having UAM (old MSME registration)
- As a new entrepreneur, click on “For New Entrepreneurs.”
- Enter Aadhaar Number
- Enter your Aadhaar number and name as per the Aadhaar card. You’ll receive an OTP on your mobile.
Tip: Ensure your Aadhaar details are accurate and up-to-date to avoid delays.
- Fill in Business Details
Enter:
- Business name
- Type of organization
- PAN number
- Location
- Date of commencement
- Bank account details
- Major business activity (manufacturing or services)
Tip: Choose your primary activity carefully. It defines the category of your business.
- Declare Investment and Turnover
Enter the estimated investment in machinery and your projected annual turnover.
Tip: Don’t overstate or understate. Enter realistic numbers even if you're a startup.
- Submit the Form and Get URN
After completing all fields, submit the form. You’ll receive your Udyam Registration Number (URN) instantly.
- Download Your Udyam Certificate
Once your details are verified, you will receive your MSME certificate download PDF on your registered email within a few hours or days.
Tip: Keep the digital and printed copies of your Udyam registration certificate for applying for loans, tenders, or subsidies.
Important Points to Remember
✅ Only one Udyam Registration is allowed per business owner (linked to Aadhaar), even if they have multiple businesses and This will help prevent frivolous applications.
✅ No need for renewal – the certificate is valid for a lifetime.
✅ You can update details later if required through the “Update udyam registration” option on the portal.
✅ GST and PAN are mandatory for registration if applicable.
Mistakes to Avoid
- Giving incorrect Aadhaar or PAN details
- Registering through unofficial websites
- Selecting the wrong business category
- Ignoring check eligibility limits
- Not saving your URN or certificate
How Udyam Registration Helps You Grow
Once you are registered, your business becomes eligible for:
- Collateral-free bank loans under government schemes
- Subsidies for ISO, patent, or trademark registrations
- Participation in government tenders through GeM
- Faster invoice payments through the Samadhaan portal
- Access to credit guarantees and export incentives
Tip: Share your Udyam certificate with banks or clients to establish credibility.
What to Do After Udyam Registration?
Now that you're registered:
- Apply for the GeM portal to sell to the government
- Explore MSME schemes like Credit Guarantee Fund, Mudra Loan, etc.
- Use the Udyam registration certificate to access loans, subsidies, and financial support
- Update details regularly if your turnover or investment changes
Conclusion
Registration will make your business recognised as an MSME in India. The government has made it a very simple and fast process, and new entrepreneurs should first get Udyam registration done to make their business even more successful.
In this article, the process of registration has been given. Register and avail the benefits that you will get due to Udyam registration.
