Looking to file ITR? File your ITR with Clear in 48 hours

  • Expert-assisted help
  • Hassle free ITR filing
  • Email/WhatsApp call support
Get Started

Get Expert Assistance

Thank You for sharing your details. Our experts will get in touch with you shortly

Udyam Registration – Get Udyam Registration Online

Updated on: Nov 30th, 2022 - 11:26:18 AM

7 min read

social iconssocial iconssocial iconssocial icons

The government launched the Udyam portal on 1 July 2020 to boost Micro, Small and Medium Enterprise (MSME) registrations. The MSMEs must apply for MSME registration, also known as the Udyam registration, through the official Udyam portal. Udyam registration is required for MSMEs to obtain the benefits the government provides to the MSME sector.

What is Udyam Registration?

Udyam registration is an e-certificate the government provides to the MSMEs in India. The Udyam registration replaced the Udyog Aadhaar Memorandum (UAM) registration. Though the Udyam registration is not mandatory, it is beneficial for the MSMEs to apply for this registration as it is required to avail of benefits that fall under the MSME category. These benefits help MSMEs to grow and boost their business across India.

The government provides the MSMEs with a unique identification number and an MSME recognition certificate when they obtain the Udyam registration. The Udyam registration certificate certifies that the enterprise is eligible to get government benefits provided to MSMEs. The validity of the Udyam registration is till the existence of the enterprise. The government is facilitating ease of doing business to MSMEs by giving a permanent registration, i.e. Udyam registration.

Eligibility for Udyam Registration

Enterprises with the below threshold limits, including trading, manufacturing and service enterprises, are eligible to apply for Udyam registration: 

  • Micro enterprises: Enterprises whose investment in machinery, plant or equipment is below Rs.1 crore and whose turnover is below Rs.5 crore.
  • Small enterprises: Enterprises whose investment in machinery, plant or equipment is below Rs.10 crore and whose turnover is below Rs.50 crore.
  • Medium enterprises: Enterprises whose investment in machinery, plant or equipment is below Rs.50 crore and whose turnover is below Rs.250 crore.

Benefits of Udyam Registration

  • Udyam registration is a prerequisite to get the benefits of government schemes or programmes of the Ministry of MSME, such as the Credit Linked Capital Subsidy Scheme, Credit Guarantee Scheme, Public Procurement Policy, etc.
  • Udyam portal is integrated with the income tax portal, GST identification systems and government e-marketplace.
  • MSMEs having Udyam registration are eligible for priority sector lending from banks. 
  • MSMEs are allowed Minimum Alternate Tax (MAT) credit to be carried forward for 15 years instead of 10 years.
  • Udyam registration helps to obtain cheaper bank loans as the interest rate is low, i.e. around 1 to 1.5%. 

How to Get Udyam Registration Online?

To obtain the Udyam registration, MSMEs should apply on the Udyam portal. The registration process is entirely online. Following are the steps for getting Udyam registration online:

Step 1: Visit the Udyam registration portal.

Step 2: On the homepage, click on the ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’ option.

Udyam Registration Online - udyamregistration.gov.in homepage

Step 3: Enter the ‘Aadhaar Number’, and ‘Name of Entrepreneur’ and click on the ‘Validate & Generate OTP’ button.

Udyam registration Online - Aadhaar number

Step 4: OTP will be sent to the entrepreneur’s mobile number linked with the Aadhaar card. Enter the OTP and click on the ‘Validate’ button. 

 Step 5: Once the Aadhaar is validated, the PAN verification page will appear. Enter the ‘Type of Organisation’, ‘PAN’ number and click on the ‘Validate’ button. Select if you have filed your previous year ITR and if you have GSTIN.

Udyam registration online - PAN verification

Step 6: The Udyam registration application form will open. Enter the details such as the name of the entrepreneur, mobile number, name of the enterprise, location of the plant/unit, address of the enterprise, status of enterprise, bank details, the activity of the unit, NIC code and number of persons employed.

Udyam registration online form

Step 7: Enter the investment in plant and machinery details and turnover details, select the declaration, and click on the ‘Submit and Get Final OTP’ button.

Udyam registration form submit

Step 8: Enter the OTP and submit the form. You will get the Udyam e-registration certificate in the email.

Documents Required for Udyam Registration

Below are the documents which an entrepreneur requires to apply for the Udyam registration:

  • PAN card number.
  • Aadhaar number.
  • GST number.

When the MSME is a proprietorship firm, the Aadhaar card number will be of the proprietor. When it is a partnership firm, the Aadhaar card number will be of the managing partner, and if it is a Hindu Undivided Family (HUF), it will be of the Karta. When the MSME is a Limited Liability Partnership (LLP), company, cooperative society or trust, the Aadhaar card number will be of the authorised signatory.

The GST number is not mandatory for all enterprises to apply for Udyam registration. It is mandatory for only those enterprises that require GST registration under the GST law.

Udyam Registration Fees

There are no charges for Udyam registration, and it is free of cost.

Udyam registration is a paperless, self-declaration and zero-cost registration for MSME entrepreneurs. All businesses should obtain Udyam registration to avail of MSME schemes benefits and MSME loans. The Udyam registration portal is the official government portal through which MSME entrepreneurs can get Udyam registration online free of cost.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice. It should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

inline CTA
Get an expert at affordable price
For ITR, GST returns, Company Registration, Trademark Registration, GST Registration
CONTENTS
;

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption