What is Udyam Registration Certificate?

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What is Udyam Registration Certificate?

The Udyam Registration Portal was launched on 1 July 2027, by the Ministry of MSMEs, to digitize India and streamline processes for the small, micro and medium businesses in the country. It is a one-of-a-kind tech-first system dedicated to the MSME sector. In this article, we will discuss everything you need to know about Udyam Registration.

Udyam Registration Certificate: Explained

The term Udyam literally means “Enterprise”. Udyam Registration, also called MSME Registration, is an online process through which the Indian Micro, Small and Medium Enterprises, collectively known as MSMEs, can register with the Government of India. 

This registration process involves filing an application via the official Udyam website and securing a unique 16-digit alphanumeric number and Udyam registration e-certificate. The e-certificate contains a QR code that links to the enterprise's page on the Udyam Portal.

If you seek legal and official certification for small or medium-sized businesses, the Udyam e-certificate is of utmost importance. This is especially true for small, micro or medium-sized businesses that want to access government benefits and schemes. 

The Udyam Registration is a digital process that replaces the traditional complex paperwork and makes it easier for businesses to get official recognition. Udyam registration download or MSME registration download can be easily done using the Udyam Portal.

Classification of the MSMEs

Only the businesses that ensure alignment with the specific investment and turnover criteria are eligible for MSME registration and benefits. The classification for MSMEs was revised during the Budget 2025. This revised classification came into effect from 1 April 2025 onwards. The table below shows the previous limits as well as revised limits: 

If your business aligns with the above-defined criteria, you can seek MSME registration.

Entities Eligible for Registering as MSMEs

The following entities are eligible for registering as MSMEs in India (provided they meet the annual turnover and investment criteria):

• Sole proprietorships

• Partnership firms

• Private limited companies

• Public limited companies

• Limited liability partnerships

• Co-operative Societies

• Trusts and Associations

• Self Help Groups

• Hindu Undivided Families 

Documents Required for Udyam Registration

The following documents are required by the applicant during the udyam registration process:

• Aadhaar Card

• PAN Card

• GST Registration (only required for businesses mandatorily required to secure this registration under GST system)

Udyam Registration Procedure for MSMEs

The registration procedure for MSMEs, via the Udyam website, takes place in the following manner:

• Online Registration: The registration process is entirely conducted online, making it convenient as well as easily accessible for MSMEs. To initiate the registration process, businesses have to access the Udyam Portal.

• Self-Declaration of MSME: The MSMEs need to provide self-declarations regarding their business, such as turnover for service businesses and investment in plant and machinery or manufacturing businesses’ equipment.

• Integration of Aadhaar: The registration procedure requires the Aadhaar number of the individual registering himself or herself. It links the entrepreneur’s identity with the MSME. Due to this integration, the legitimacy of the information entered during registration can be determined.

• Receipt of Instant Registration Number: Upon successful completion of Udhyam Registration online process, MSME receives an instant registration number. This number works as a unique identifier for the enterprise and allows it to avail several benefits.

• Classification of MSMEs: Based on their business’s nature, MSMEs are classified into Manufacturing Enterprises and Service Enterprises. This classification helps them to customize certain promotional and support operations based on the specific business type.

• No Cost/Fees: One of the notable aspects of the Udyam Certification process is that there is no fee for Udhyam Registration. This eliminates any financial barriers for MSMEs and encourages a more extensive participation of small businesses in the formal registration process.

What are the Features of Udyam Registration Certificate?

The features of the Udyam Registration certificate are as follows:

• This certificate provides a permanent registration number to the MSMEs.

• The Udhyam Registration Certification is an e-certificate that is received on the entrepreneur’s email address once the online registration is completed.

• This certificate remains valid till the enterprise exists and obtaining it is absolutely free of cost.

• More than one MSME registration cannot be applied by a single enterprise. Any number of activities including manufacturing or service or both must be specified or included in the single registration only.

• To obtain loans from banks or NBFCs and avail benefits provided under various government schemes for MSMEs, the Udhyam certification is necessary.

• The Udhyam Registration ensures that an enterprise receives the official MSME tag.

• For the Udyam-registered MSMEs, several state governments offer subsidies or rebates on the electricity bills (depending on their state policies).

• The registration udyam offers protection against delayed payments made to the MSMEs. If the buyer causes a delay in the payment beyond the agreed upon timeframe, or 45 days in case of no specified timeframe, then the MSME can claim interest on delayed payment amount.

Does Udyam Registration Certificate need to be Renewed?

Once the Udyam Registration e-Certificate is issued to an enterprise after successful MSME Registration, it remains valid for a lifetime of the business entity. Therefore, there is no requirement for renewal of Udyan Registration Certificate.

Conclusion

Initially, the Government of India had launched Udyog Aadhaar for MSMEs to get their businesses registered. However, the registration process was a bit complex. Thus, from 2020 onwards, Udyam became the new portal for MSME registration. This portal is a single online portal for the registration of the MSMEs across the country. The government’s Udyam project is crucial to empower and assist the MSMEs. This registration facilitates the expansion of small and medium-sized enterprises by providing them with a formal identity due to which they can easily obtain financing and government schemes’ benefits.

To secure long-term success and sustainability in today’s competitive business industry, the MSMEs must make use of all the benefits they can obtain. If you need assistance in registering a business, feel free to connect with our consultants at Registrationwala!

Frequently Asked Questions (FAQs)

Q1. What are the tax benefits of Udyam/MSME Registration?

A. There are many tax benefits that come with Udhyam Registration for MSMEs. These benefits include preferential treatment in terms of income tax exemptions, reduced interest rates and excise exemption. The Udyam/MSME registration allows MSMEs to enjoy these benefits and helps them in financial stability and growth.

Q2. What is meant by the MSME subsidy?

A. MSME subsidy refers to the financial help provided by the Government of India to the eligible businesses falling under the MSME category. These subsidies can take place in various forms like capital subsidies, internet subsidies and subsidies for technology upgradation. 

Q3. Who is not eligible for MSME status?

A. Large enterprises, public corporations and businesses involved in activities excluded by the government are generally not eligible for MSME status. The eligibility criteria specified by the government must be reviewed carefully to determine the MSME status of a business.

Q4. How is the MSME status beneficial for the small businesses in India?

A. The MSME status offers a multitude of benefits for small businesses such as easier credit access, priority sector lending and various incentives and subsidies. To offer support to the businesses falling under the MSME category, the government has tailored several schemes and initiatives so that the entrepreneurs can benefit from them.

Q5. How many digits does the udyam number contain?

A. The udyam number contains a total of 19 digits. 

Q6. What is the cost of an udyam e-certificate?

A. Obtaining udyam e-certificate from the official udyam website is free of cost.

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