The Government of India has introduced Udyam Registration in an effort to provide official certification to micro, small, and medium-sized enterprises (MSMEs). It was earlier known as Udyog Aadhaar, and its new iteration, “Udyam Registration,” was introduced on 1st July 2020.
Well, then the question arises: Who can apply for Udyam Registration?
Regardless of whether you are a budding entrepreneur or a seasoned entrepreneur, this manual is convenient and simple to follow.
What is Udyam Registration?
Udyam Registration is a government identity certificate that ensures your business falls under the MSME category. On registration, you are provided with a Udyam Registration Number (URN) and an e-certificate.
This certificate validates your business and allows you to avail yourself of various government schemes, subsidies, tax benefits, and loan facilities.
Who can apply for Udyam Registration?
The government has made enterprise registration extremely flexible. Anyone who is an old or new entrepreneur can apply. Let’s learn in detail:
Individual Entrepreneurs
If you are an individual small business owner, you are eligible to apply for enterprise registration. For example:
- Grocery Store
- Bakery
- Tailor Shop
- Freelancer
Sole Proprietorship
Entrepreneurs whose business is registered as a sole proprietorship can apply for enterprise registration.
Partnership Firms
If your business is a partnership company, then you are also covered. One Aadhaar card of any of the partners is needed.
Private Limited Companies
Private limited small and medium businesses are covered for enterprise registration only.
Limited Liability Partnership (LLP)
Entrepreneurs on the LLP model are also covered.
Co-operative Societies
Cooperative societies operating rural businesses are also under Udyam Registration.
Product and Service Providers
- Production units such as manufacturing units and factories.
- Service sectors such as IT, consultancy, travel agencies, digital marketing, and healthcare services.
- The two categories are admissible for registration.
Types of MSMEs (What business falls under which category?)
MSMEs have been classified by the government into three categories. Registration is based on these grounds.
1. Micro Enterprises
- Investment: Up to ₹2.5 crore
- Annual Turnover: Up to ₹10 crore
2. Small Enterprises
- Investment: Up to ₹25 crore
- Annual Turnover: Up to ₹100 crore
3. Medium Enterprises
- Investment: Up to ₹125 crore
- Annual Turnover: Up to ₹500 crore
If your business falls under any of the above types, you may definitely go for Udyam registration.
Documents Needed for Udyam Registration
To make the process of registration hassle-free, the government has retained only a few documents as mandatory.
- Aadhaar Card (Individual/Proprietor/Partner/Director)
- PAN Card
- Business Address Proof (Electricity Bill, Rent Agreement, etc.)
- Bank Statement
- Business Details (e.g., type of activity, employee strength, investments, etc.)
Why Udyam Registration
If you are eligible and not registered, note its benefits:
- Government scheme benefits—subsidy, tax exemption, and other incentives.
- Ease of easy loan – Collateral-free Bank loans.
- Government tender preference—MSME-registered units are exempted from tendering.
- Subsidized rate loans—Avail the Credit Guarantee Scheme.
- International acceptability – Your MSME certificate will be accepted anywhere in India.
Who cannot register for Udyam?
It is also necessary to identify who cannot register.
- Large business organizations whose investment and turnover value is above the MSME limit.
- Individuals/organizations that are not engaged in any business activities.
How to register on the Udyam registration portal?
Udyam registration is a completely online process.
- Visit the official website of Udyam Registration.
- Fill the Udyam registration form
- Enter the basic details that are required in the form.
- Enter your Aadhaar number and mobile number.
- Enter your PAN and business details.
- Upon submission, a Udyam registration number will be allotted to you.
- Your Udyam certificate will be dispatched to you soon.
You Can Apply for Update Udyam Certificate Through Udyam Portal
Conclusion
Every entrepreneur who comes under the definition of MSMEs definitely registers their business in the Udyam Registration Portal. You might be a shop owner with a small shop, a freelancer, the owner of a startup, a private limited company, or a manufacturing unit—anyone who is a part of the MSME definition can register.
It is not just a certificate but a way to identify, secure, and grow your business.
If you also want to expand your business and take advantage of government facilities and schemes, then register for Udyam Registration now.
