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Udyam Registration For MSMEs: Things To Know


The new process for registration of micro, small and medium enterprises (MSMEs) in the name of Udyam Registration began on 1 July 2020. Thee MSME ministry also said that an MSME in the country will now be referred to as 'Udyam' since the term comes closer to the meaning of an enterprise.

New definition of MSMEs

New definition of MSMEs

As part of the COVID-19 relief package named 'Atmanirbhar Bharat,' the definition of MSMEs was changed to reclassify them on the basis of not just investments put in but to include turnover of the company.

Under the new definition, there will be no more distinction between Manufacturing and Service MSMEs.

  • Micro units: Those with investments up to Rs 1 crore and turnover of less than Rs 5 crore.
  • Small units: Those with investments up to Rs 10 crore and turnover of less than Rs 50 crore.
  • Medium units: Those with investments up to Rs 20 crore and turnover of less than Rs 100 crore.
Udyam Registration procedure

Udyam Registration procedure

The Udyam registration for MSMEs can be performed completely online with just Aadhaar and is based on self-declaration, as per a notification issued by the MSME ministry.

PAN & GST linked details on investment and turnover of enterprises will be taken automatically from government databases. This system has also been integrated with Income Tax and GSTIN systems.

Businesses which have the EM-II (entrepreneurs memorandum) or Udyog Aadhaar Memorandum or any other registration issued by an authority under the MSME ministry, will have to re-register themselves.

The government has notified as the only government portal for the Udyam Registration. The registration is free of cost and paperless. No offline or online agency, institution or consultancy is authorised to charge any fee for this registration.

Having PAN & GST number is mandatory from 1 April 2021.

New entrepreneurs not already registered as MSME as well as those registered as EM-II or UAM can use the portal for registration/re-registration.

"Except this portal of Government of India and Government's Single Window Systems, no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration or undertake any of the activity related with the process," says the government's Udyam website.


  • A permanent registration number will be given after registration.
  • After completion of the process of registration, a certificate will be issued online.
  • This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
  • There will be no need for renewal of Registration.
  • No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
Benefits of Udyam Registration

Benefits of Udyam Registration

Some of the notable beneits of the Udyam registration are:

  • interest rate subsidy or collateral free bank loans as per government announcements
  • access to Special beneficial reservation policies in the manufacturing/ production sector
  • for eligibility for CLCSS (credit linked capital subsidy scheme)
  • international trade fair special consideration
  • government security deposit (EMD) waiver while participating in tender)
  • concession on electricity bills, barcode registration, patent registration, NSIC performance and credit rating fees
  • stamp duty and registration fees waiver
  • ISO certification fees reimbursement
  • Industrial Promotion Subsidy (IPS) Subsidy eligibility
Read more about: msme sme msmes small business
Story first published: Wednesday, July 15, 2020, 14:02 [IST]
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