This new system has replaced the older Udyam Registration system. The Udyam Portal allows business owners to register their MSME without paperwork, visits to government offices, or the need for agents. In this article, we will guide you through the MSME Registration process through the Udyam Portal, how to apply fast, the benefits, documents required, and frequently asked questions.
What Is MSME Registration?
MSME registration is a government process that recognizes your business as a micro, small, or medium enterprise. Once registered, your business becomes eligible for many schemes and benefits provided by the central and state governments. Udyam Registration is the official method of MSME registration launched by the Ministry of Micro, Small and Medium Enterprises on 1st July 2020.
Benefits of MSME Registration
Registering your business under the MSME category through the Udyam Portal brings multiple advantages:
- Easier Access to Loans – Banks offer collateral-free loans under the Credit Guarantee Scheme.
- Lower Interest Rates – MSMEs can get loans at reduced interest rates.
- Subsidies – Eligible for subsidies in electricity bills, ISO certification, technology upgrades, etc.
- Protection Against Delayed Payments – Buyers are legally required to pay MSMEs within 45 days.
- Priority in Government Tenders – MSMEs get preference in public procurement processes.
- Ease of Business – Registered MSMEs get support from government departments and banks.
- Access to Government Portals – Such as GeM (Government e-Marketplace) for selling products and services to government buyers.
Who Can Apply?
The following business types can apply for Udyam Registration:
- Sole Proprietorship
- Partnership Firm
- Private Limited Company
- Limited Liability Partnership (LLP)
- Hindu Undivided Family (HUF)
- Co-operative Societies
- Trusts
- Startups
- Freelancers
- Retail and Wholesale Traders
- Service Providers
- Manufacturers
MSME Classification as per Udyam Rules
The classification of businesses under MSME is based on two key factors:
- Micro Enterprises: Investment up to Rs. 2.5 crore and turnover up to Rs 10 crore.
- Small Enterprises: Investment up to Rs. 25 crore and turnover up to Rs. 100 crore.
- Medium Enterprises: Investment up to Rs 125 crore and turnover up to Rs 500 crore.
Documents and Information Required
The Udyam Registration process is paperless. You do not need to upload any documents. However, you must keep the following details ready:
- Aadhaar Number of the applicant
- PAN Card (personal or business)
- Mobile number linked to Aadhaar
- Email address
- Name of Business
- Business Type (proprietorship, partnership, etc.)
- Date of Commencement
- Bank Account Details
- Address of Business
- NIC Code (National Industrial Classification)
- Number of Employees
- Details of Investment and Turnover
Step-by-Step Process to Apply Fast on Udyam Portal
- Visit the Udyam Portal: Open your browser's official Udyam Registration portal.
- Fill in Business Details: Enter essential details like your business name, type, address, and bank account information. Ensure accuracy in the data.
- Review and Submit the Form: Review the information to confirm it's correct. After reviewing,
- apply.
- Pay the Registration Fee: Select your payment method and complete the registration payment.
- Receive OTP on Mobile: An OTP will be sent to the mobile number linked with your Aadhaar card.
- Enter OTP: Input the OTP sent to your phone to verify your identity.
- Complete Registration: Once your details are confirmed, your registration will be completed.
- Receive Your Udyam Certificate: Once verified, your Udyam Registration certificate will be generated and sent directly to your email.
How to Update MSME Details After Registration
In case you want to change any information such as:
- Address
- Turnover
- Contact details
- Business activity
- Bank details
Common Mistakes to Avoid
While registering on the Udyam Portal, avoid the following errors:
- Wrong Aadhaar or PAN number
- Mismatched names as per Aadhaar
- Selecting the wrong NIC code
- Incorrect investment or turnover data
- Using unverified third-party websites
Udyam Registration Without GST
Many small businesses ask whether GST is required for registration.
The answer is:
- If your turnover is below the GST threshold, GST is not mandatory.
- If your business is legally required to have GST, you must provide your GST number.
Note: Now you can easily update udyam certificate through the Udyam portal
Conclusion
The Udyam Portal makes the MSME registration process easy, fast, and completely digital. Whether you are a startup, manufacturer, trader, or service provider, registering your business helps you gain official recognition and unlock multiple benefits.
You don’t need agents or long paperwork. With just your Aadhaar, PAN, and basic business information, you can complete your MSME registration in minutes. If you want to grow your business, get financial help, or participate in government tenders, registering on the Udyam Portal is the first step.
So, don’t delay. Visit the official Udyam portal today and get your MSME certificate quickly.