Udyam Registration Online for MSMEs: A Step-by-Step Guide

16 Aug 2023

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s economy, fostering growth, innovation, and employment opportunities. To tap into the manifold advantages offered by the government, Udyam registration (formerly known as Udyog Aadhar) is mandatory. This guide elucidates the eligibility criteria, essential documents, and an easy process for Udyam registration online.

Eligibility for Udyam Registration:

MSMEs in India can avail Udyam registration if they meet the following criteria:

  1. Investment Limit:
    • Micro Enterprise: Investment in plant and machinery or equipment should not exceed Rs. 1 crore.
    • Small Enterprise: Investment should be between Rs. 1 crore and Rs. 10 crore.
    • Medium Enterprise: Investment should range from Rs. 10 crore to Rs. 50 crore.
  2. Turnover Limit: The annual turnover of the enterprise should not exceed:
    • Micro Enterprise: Rs. 5 crore
    • Small Enterprise: Rs. 50 crore
    • Medium Enterprise: Rs. 250 crore

Documents Required for Udyam Registration Online:

Ensure you have the following documents on hand before initiating the Udyam registration process:

  1. Aadhar Card: A valid 12-digit Aadhar number of the applicant is necessary for verification.
  2. PAN Card: The PAN card details of the applicant, along with those of the business entity, are essential.
  3. Business Address Proof: Documents like property tax receipt, lease agreement, or utility bills that establish the business’s physical address.
  4. Bank Account Details: Provide a canceled cheque or the first page of your passbook that displays your business’s name, account number, and IFSC code.

Step-by-Step Guide to Udyam Registration Online:

Follow these straightforward steps to complete your Udyam registration online:

  1. Access the Udyam Registration Portal: Visit the official Udyam registration portal at www.udyamregistration.gov.in.
  2. Enter Aadhar Number: Input your 12-digit Aadhar number.
  3. Personal and Business Details: Fill in your personal information, business name, PAN details, and communication information.
  4. Location of Business: Specify the location of your business, including the district and state.
  5. MSME Classification: Choose the appropriate classification based on investment and turnover.
  6. Bank Account Details: Add accurate bank account information for verification purposes.
  7. Optional: Previous Udyog Aadhar/EM-II Registration: If you possess previous Udyog Aadhar or EM-II registration, provide those details.
  8. Self-Declaration and Submission: Declare the existence of your business and submit the form with a digital signature.
  9. Verification: Your Aadhar number will be verified through an OTP sent to your registered mobile number.
  10. Obtain Udyam Certificate: After verification, your Udyam certificate will be available for download from the portal.

Benefits of Udyam Registration:

As of update in September 2021, here are the benefits associated with Udyam Registration in India. Please note that these benefits could have evolved or changed since then, so it’s advisable to check with the relevant authorities for the most current information:

  1. Easier Access to Credit and Loans: Udyam Registration can improve the ease of access to credit and loans from banks and financial institutions. Many financial institutions and banks have special schemes and incentives for MSMEs, making it easier for registered businesses to secure funding.
  2. Subsidies on Various Government Schemes: Registered MSMEs might be eligible for subsidies under various government schemes aimed at promoting growth, innovation, and competitiveness within the sector. These subsidies can help reduce operational costs and enhance the financial viability of the business.
  3. Eligibility for MUDRA Loans: Micro Units Development and Refinance Agency (MUDRA) loans are targeted at small businesses and entrepreneurs. Udyam Registration enhances your eligibility to avail these loans, which are designed to meet the financial needs of MSMEs.
  4. Protection Against Delayed Payments: Udyam Registration provides a framework for dealing with delayed payments from buyers or clients. The MSME Ministry and government bodies offer mechanisms to ensure that payments are made on time, thereby protecting the interests of registered businesses.
  5. Excise Exemption: Depending on the sector and size of the business, registered MSMEs might be eligible for excise exemption or reduction. This can lead to cost savings in production and operations.
  6. Concession on Electricity Bills: Some states in India offer concessions on electricity bills for registered MSMEs. This can help reduce operational expenses, making it more cost-effective to run the business.


Udyam registration online has been designed to simplify the process for MSMEs and provide them with a gateway to numerous benefits. With this guide, you’re equipped with the knowledge of eligibility criteria, required documents, and the step-by-step process to navigate Udyam registration effortlessly. By securing your Udyam certificate, you position your business to access financial support, subsidies, and opportunities that will contribute to its growth and success in the competitive market.

Frequently Asked Questions (FAQs) About Udyam Registration:

1. Why is Udyam registration necessary?

Udyam registration unlocks benefits like subsidies, credit access, and protection against delayed payments.

2. Can an existing MSME obtain Udyam registration?

Yes, both existing and new MSMEs can register for Udyam.

3. Can multiple businesses be registered under one Aadhar?

Yes, an Aadhar can be linked to multiple Udyam registrations if the businesses are distinct.

4. Is there a registration fee?

No, Udyam registration is free of cost.

5. Is Udyam registration mandatory for MSMEs?

While not mandatory, Udyam registration is highly recommended to avail of benefits.

6. Can details be updated after registration?

Yes, you can update certain details online.

7. What is the validity of the Udyam certificate?

The Udyam certificate has a lifetime validity.

8. Can a cancelled Udyog Aadhar be transferred to Udyam?

No, Udyog Aadhar registrations should be migrated to Udyam.

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