Udyam MSME Registration Online Process

MSME Registration: Udyam Registration Process

Step by Step Udyam Registration Process

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MSMEs or Micro, small and medium enterprises are small to medium size businesses that are registered under the MSME Act, 2006. Being the second-largest contributor to the Indian GDP after the agriculture sector, the MSME sector is the backbone of the country’s economy.

A business is classified as an MSME based on the capital invested and the annual turnover. While registration of a business as an MSME is not compulsory, it provides a number of benefits such as tax benefits, loans, credit facilities, etc.

MSME Online Registration Process on Udyam

In order to be classified as an MSME and avail the various benefits extended by the government for MSMEs, you need to register your business on the Udyam portal by the Ministry of Micro, Small and Medium Enterprises. The registration of an MSME can be done under any one of the following two categories:

  • For new entrepreneurs who are not registered as MSME.

  • For entrepreneurs already having UAN (Udyog Aadhaar Number).

Registration Process for New Entrepreneurs Who Are Not Registered as MSME

If you are a new entrepreneur having EM-II registration, you can follow the below-mentioned steps in order to get your organisation registered as an MSME on the Udyam portal:

Step 1: Visit the Udyam portal and click on “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” on the home page.

Step 2: Enter your Aadhaar card and PAN on the registration page that opens next and click on “Validate and generate OTP”. An OTP will be sent to your mobile number.

Step 3: Enter the OTP received in the designated space. Now, the PAN registration page will open.

Step 4: Select the “Type of Organisation” from the dropdown menu, enter your PAN and click on the “Validate PAN” button. The portal will fetch your PAN details from the IT department database.

Step 5: After the PAN verification is complete, the Udyam registration form will open where you need to fill in the details of your organisation along with a few personal details.

Step 6: After filling out the form, click on “Submit and Get Final OTP”. You will again receive an OTP on your mobile number.

Step 7: Now enter the OTP received. The Udyam registration process is now complete and a message of successful registration along with a reference number will appear. Note down the reference number for future reference.

Registration For Entrepreneurs Already Having UAM

If you already have a UAM (Udyog Aadhaar Number), the registration process on the Udyam portal is even simpler. Just follow the steps below and you are done:

Step 1: Visit the Udyog portal and click on “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” on the homepage of the portal.

Step 2: Now enter your UAM (Udyog Aadhaar Number) on the page that opens next and click on “Validate and Generate OTP”. An OTP will be sent to your mobile number and the email address linked with your UAM.

Step 3: Enter the OTP received in the designated space and fill in the registration details. Your MSME registration is now complete and a reference number shall be displayed on your screen.

Eligibility Criteria for MSME Registration

In order to be eligible for registration as an MSME, your business must fulfil certain eligibility criteria. A business is classified as a micro, small or medium enterprise based on the capital invested and the annual turnover. The following table illustrates the eligibility criteria for MSME loan registration:

Enterprise Type

Max Investment

Max Annual Turnover

Micro

₹1 Crore

₹5 Crores

Small

₹10 Crores

₹50 Crores

Medium

₹50 Crores

₹250 Crores

Documents Required for MSME Registration

PAN Card and Aadhaar card are the only two documents required to get your business registered as an MSME on the Udyam portal. Since PAN and GST are interlinked, the details of the capital invested and the annual turnover of the business are automatically fetched by the Udyam portal from the government database.

Benefits of MSME Registration

As mentioned earlier, MSME registration is although not mandatory, it does offer numerous benefits to the business owner. Some of these benefits are listed below:

  • Bank loans become much cheaper for MSME registered businesses as the rate of interest is relatively lower than regular loans, starting from 1% to 1.5%.

  • A business owner who has successfully taken care of the MSME registration process can also carry the credit for minimum alternate tax for up to 15 years instead of 10 years.

  • Once the business is registered, the cost of getting a patent done, or that of setting up a factory, reduces owing to the various rebates and concessions available.

  • MSME registration additionally helps the business owner acquire tenders from the government easily as the Udyam Registration Online Portal is integrated with the government’s e-Marketplace and several other state government portals that give easy access to such marketplaces and e-tenders.

Details Needed in MSME Application Form

You need to provide the following details to the Ministry of Micro, Small and Medium Enterprises in order to get your business registered on the Udyam portal:

  • Aadhaar number

  • Name of the business owner

  • Gender of the business owner

  • Type of organisation (public or private limited company, proprietorship firm, partnership firm, limited liability partnership, co-operative society, Hindu undivided family, society of trust, self-help group)

  • PAN card

  • Caste category (General, OBC, SC/ST)

  • Name of the enterprise

  • Location of the plant/unit

  • Office address of the company

  • Bank account number along with the IFSC code

  • Business activity of the enterprise

  • Date of commencement of business or incorporation or registration of the company

  • Number of employees

  • NIC code of the primary activity

  • Capital invested in plant and machinery

  • Annual Turnover

How to Get an MSME Certificate Online

You can easily obtain the MSME certificate online on the Udyam portal. Given below are the steps to be followed to download the MSME certificate:

Step 1: Visit the Udyam portal and select the “Print/Verify” tab and click on “Print Udyam Certificate”.

Step 2: On the next page, enter the Udyam registration number and mobile number and click on ‘Validate and Generate OTP’. An OTP will be sent to your mobile number and email address.

Step 3: Enter the OTP received and click on “Validate OTP and Print”.

You will be able to view the MSME registration certificate on your screen. You can also download and print the certificate.

MSME Helpline Numbers

You can dial the helpline numbers as listed in the table below for different types of queries:

Type of Query

Helpline Number

General Queries

011-23063288

Administration Queries

011-23063800

Technical Queries

011-23062354

FAQs on MSME Registration

  • ✔️Who can apply for MSME registration?

    The following types of business entities can apply for MSME registration, subject to fulfilment of the eligibility criteria (based on the investment and the turnover):

    • Individuals business owners

    • Sole Proprietorships

    • Partnership Firms

    • Limited Liability Partnerships (LLPs)

    • Private and Public Limited Companies

    • Cooperative Societies

    • Self Help Groups (SHGs)

    • Trusts, and many other entities

  • ✔️How can I get a copy of my MSME certificate?

    You can download your MSME certificate from the Udyam portal (detailed step by step procedure discussed above).

  • ✔️What is the MSME certificate update fee?

    You can update your MSME certificate absolutely free of cost.

  • ✔️When will the MSME certificate be issued?

    Once you submit your application for registration of your business as an MSME on the Udyam portal, your certificate is issued typically in 1 -2 working days. You can download the certificate anytime by logging in on the Udyam portal.

  • ✔️What are the rejection chances of an online MSME application?

    Your application for registration of your business as an MSME can be rejected on several grounds such as non-fulfilment of the eligibility criteria (based on the turnover and the amount invested), unpaid debts, history of loan defaults, lack of cash flow and many more.

  • ✔️Can the MSME borrowers get collateral-free loans from banks?

    Yes, MSMEs can easily avail an unsecured (collateral-free) loan from any financial institution (banks or NBFCs) provided they have a good credit score and a decent credit repayment history.

  • ✔️What is the difference between Udyam Registration and MSME/Udyog Aadhaar?

    Udyam registration is the registration of a business as an MSME with the Ministry of Micro, Small and Medium Enterprises via the Udyam portal. Udyog Aadhaar is a unique 12-digit number assigned by the Ministry to a given business.

  • ✔️Is the Aadhaar number mandatory for online MSME registration?

    Yes, Aadhaar is mandatory for online MSME registration on the Udyam portal.

  • ✔️Is a credit score or CIBIL score necessary for MSME borrowers?

    While a good credit score is not mandatory, it always helps in getting business loans at lower interest rates and with favourable terms.

  • ✔️Do I get a hard copy or a physical copy of the MSME certificate?

    No, if you opt for online registration, you can download only a soft copy of your MSME certificate from the Udyam portal. You can always get a print-out of the certificate if you wish to keep a physical/hard copy.