Starting and growing a business is a big step, and in India, getting officially recognized by the government gives you many benefits. That’s where Udyam Registration comes in. Udyam Registration helps you access government schemes, financial help, and legal recognition, whether you're just starting a new business or already running an existing one.
Let’s break down everything you need about Udyam Registration for new and existing businesses in easy, everyday language.
What Is Udyam Registration?
Udyam Registration is the official process to register your small or medium-sized business (MSME) with the Ministry of Micro, Small, and Medium Enterprises (MSME). Once registered, you receive a unique Udyam Number and a Udyam Certificate, which proves that your business is legally recognized as an MSME.
This registration is done online through the Udyam registration portal, which is easy to use and completely paperless.
Who Can Apply?
Udyam Registration is open to:
New businesses that are about to begin operations
Existing businesses already registered under Udyog Aadhaar, EM-II, or any other system
Sole proprietors, partnerships, companies, LLPs, and even home-based businesses
No matter your size or stage, if your business falls under micro, small, or medium enterprise categories based on investment in plant & machinery and annual turnover, you are eligible.
Udyam Classification
As per the latest government guidelines, businesses are classified as:
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
Benefits of Udyam Registration
Whether you’re a new or existing business, having Udyam Registration offers several advantages:
1. Access to Government Schemes
Udyam-registered businesses can apply for special government schemes like:
Subsidy programs
Financial aid for technology upgrades
Skill development support
These schemes help lower your costs and give your business a boost.
2. Easier Loan Approvals
Banks and NBFCs (non-banking finance companies) often provide loans at lower interest rates to Udyam-registered businesses. This makes it easier to get working capital or funds for expansion.
3. Eligibility for Government Tenders
Only MSMEs with Udyam Registration are eligible to apply for government tenders that are specially reserved for small businesses. These tenders offer a great chance to win large contracts, gain steady work, and grow your business with government support.
4. Protection Against Late Payments
With Udyam Registration, your business gets protection under the MSME Act. If a buyer delays payment beyond 45 days, you can file a complaint and get legal support to recover your dues quickly and fairly.
5. Tax and Compliance Benefits
Udyam Registration may not offer direct tax discounts, but it helps you access GST exemptions, ISO certification benefits, and various government schemes. These indirect savings can reduce your overall business expenses and improve your financial efficiency.
6. Increased Business Credibility
Udyam Registration adds credibility to your business. It assures customers, banks, and partners that your enterprise is genuine, trustworthy, and officially recognized by the Indian government, helping you gain confidence and open more opportunities for growth and support.
How to Register a New Business on the Udyam Portal
Registering a new business is very simple. Here’s how:
Go to the Website – Open the official Udyam Registration portal.
Fill out the Form – Enter your basic details like name, business type, and Aadhaar number.
Submit the Form – Double-check all details and click submit.
Make Payment – Pay the registration fee online.
Receive OTP – An executive will contact you, and you’ll get a One-Time Password (OTP) on your phone.
Enter OTP – Type in the OTP to verify your application.
Get Your Certificate – Once approved, your Udyam Registration Certificate will be emailed to you.
For Existing Businesses
If your business is already registered under Udyog Aadhaar, EM-II, or any older system, you need to migrate to Udyam.
Why Update?
Old systems are now merged into Udyam
Without migration, you won’t get benefits
It keeps your MSME status valid
Migration Process
Visit the Udyam portal
Select “For those having registration as Udyog Aadhaar”
Enter Udyog's Aadhaar number and verify with OTP
Update details as required and submit
Note: You can also Cancel Udyam Registration from our website
Conclusion
Whether you are just starting a business or already managing an established one, Udyam Registration is a must-have. It not only makes your business official in the eyes of the government, but it also opens the doors to finance support, credibility, and growth.
