With effect from 1st July 2020, MSME Registration / Udyog Aadhar which belonged to the old system of registration where a UAM Number was generated has been replaced by a  new system known as Udyam Registration. Even if you have already obtained MSME Registration / Udyog Aadhar before 1st July 2020, they are no longer valid and you need to apply for a fresh Udyam Registration.

Any person who has an Aadhaar card linked with a valid mobile number and his business comes under the MSME classification can obtain the registration for their business and can avail of a plethora of benefits on various schemes introduced by the Ministry. Let's first discuss the notified MSME classification.


Definition of MSME & Classification

The term MSME (Micro, Small, and Medium Enterprise) was introduced by the Government of India in agreement with the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. The Indian government offers a myriad of benefits to MSMEs, so they can function seamlessly in the Indian as well as global market. It was initiated and is managed under the Ministry of MSME (MoMSME). MSMEs are entities engaged in the production, manufacturing, processing or preservation of goods and commodities. They are further classified on the basis of investment and annual turnover as follows.


Turnover Threshold

Investment Threshold

Micro- Enterprise

Up to 5 Cr

Up to 1 Cr

Small Enterprise

Between 5 Cr and 50 Cr

Between 1 Cr to 10 Cr

Medium Enterprise

Between 50Cr to 100 Cr

Between 10 Cr to 20 Cr


Features of Udyam

⇀ Udyam registration number is a 19-digit permanent registration number that has lifetime validity.
⇀ An enterprise can have only one Udyam registration. However, several manufacturing activities and services can be added to a single enterprise registration.
⇀ All enterprises having a UAM or EM-II registration or any other registration issued under the Ministry of MSME must register themselves again with the Udyam program as they are no longer valid from 1st July 2020, and you need to apply for fresh registration.
⇀ It is a free registration certificate for your business and requires no payment at any stage of the process.
⇀ The Udyam registration process is 100% online, paperless, and based on self-declared information.
⇀ Udyam Registration Certificate will also be issued online consisting of a dynamic QR Code from which the details about the enterprise can be accessed.
⇀ Aadhaar is mandatory in order to get registered as an MSME. 
(The Aadhaar of the Proprietor must be used in the case of a Proprietorship Firm. In the case of a Partnership Firm, the Aadhaar of the Managing Partner should be given and in the case of a Hindu Undivided Family (HUF), the Aadhaar of the Karta can be used.)
⇀ Your PAN and GST details about investments and enterprise turnover will be automatically synced from other government databases.
⇀ A person who intentionally falsifies or attempts to obscure the self-declared information and figures included in the registration/update process is liable for the punishment provided u/s 27.


Benefits of Udyam Registration

By getting Udyam Registration, you can avail a plethora of benefits –

⇀ It enhances the chances of the business getting future loans and an upper hand in various other legal matters.
⇀ Several schemes are also being run by the government to benefit the SMEs where loans are granted to them at low-interest rates.
⇀ Businesses get tariff subsidies and tax and capital subsidies.
⇀ The government support registered businesses to recover delayed Payments.
⇀ It provides discounted IPR Registration Fees.
⇀ It provides benefits from various Tax exemptions and additional benefits in SEZ.
⇀ Registered businesses get special preference in the procurement of government tenders & also get access to Government Trade Portals.
⇀ All MSMEs which are registered as per the requirement would get any form of reimbursement for ISO certification.
⇀ A registered business will satisfy the eligibility criteria for electricity bill concessions.


Registration Procedure

Any enterprise that qualifies under the definition of MSME can obtain Udaym Registration under the MSME Act on the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates, or proof.

On registration, an enterprise will be assigned a permanent identification number to be known as “‘Udyam Registration Number”. An e-certificate, namely, the “Udyam Registration Certificate” shall be issued on completion of the registration process which has a lifetime validity unless canceled. Registration can be done online by following the steps provided below-

Step 1: Visit the Government MSME portal udyamregistration.gov.in

Step 2: Fill out the registration form online with all required details like Identification Details personal details, Social & Gender Category, Address, Business Incorporation Details, NIC Code, Bank Details, etc.

Step 3: Submit the application form along with documents, you shall receive a registration number. The documents required to be uploaded are-

– PAN Card, Aadhar Card
– Business’s Address Proof
– Copies of Sale Bill and Purchase Bill
– Partnership Deed / MoA and AoA
– Copy of Licenses and Bills of Machinery Purchased

Step 4: After the successful submission of the application, your Udyam Registration number will be generated immediately and will be provided to you at the same time.

The Registration Certificate takes time as the concerned authorities validate your information before generating the certificate. The time taken to validate your details is approximately 7 to 10 days. MSME registration certificate shall be delivered by email or to the applicant's registered address.


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Registration of MSME is not mandated by statute and is at the sole discretion of the entrepreneur, but having said that, the registration proves beneficial for enterprises to avail of the benefits from the Government. Registering to MSME relishes a plethora of benefits from the central and state governments in various forms like schemes, support and concessions offered and at the same time builds image and credibility in the business market. Also, there are no registration fees required for this purpose, so why not go for it if you come under the MSME definition? This sector is developing at a rapid pace and helps in promoting employment opportunities in rural and backward areas. With the right strategy, anyone can be a successful businessman/businesswoman.