Udyam registration certificate, also known as an MSME registration certificate, is a document issued by the Ministry of Micro, Small and Medium Enterprises (MSME) in India. It is issued to the entrepreneurs upon completing the MSME registration process. This certificate helps them to access various government schemes, subsidies, and benefits which support MSMEs.
Find out all about the Udyam Registration Certificate, its features, how to apply, format, download and more.
What is Udyam Registration Certificate?
The Ministry of MSME issues an e-certificate known as the Udyam Registration Certificateto MSMEs in India. This certificate acts as proof that an entreprise or business comes under the MSME category and is eligible to apply for benefits provided to MSMEs by the government.
Entreprenuers can apply for the Udyam registration certificate through the Udyam portal. The Udyam registration certificate is necessary to obtain loans from banks and benefits provided under various schemes to MSMEs.
Udyam Registration Certificate Features
The Udyam registration certificate contains a permanent registration number provided to MSMEs.
The Udyam registration certificate is an e-certificate issued on the email of the entrepreneur once the Udyam registration is complete.
The Udyam registration certificate is valid till the existence of the enterprise; thus, it is not required to be renewed.
An enterprise cannot apply for more than one MSME registration. Thus, all activities of the enterprise are covered in the Udyam registration certificate.
The Udyam registration certifies that an enterprise is covered under the MSME category.
How to Apply for a Udyam Registration Certificate?
On the homepage, click on the ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’ option.
Enter the ‘Aadhaar Number’, and ‘Name of Entrepreneur’ and click on the ‘Validate & Generate OTP’ button. Enter the OTP sent to the Aadhaar-linked mobile number and validate the OTP.
Enter the ‘Type of Organisation’, ‘PAN’ and click on the ‘Validate’ button.
Enter the details on the ‘Udyam Registration’ form and click ‘Submit and Get Final OTP’. Enter the OTP and submit the form.
Entrepreneurs will get the Udyam registration certificate in their email ID.
Udyam Registration Processing Time and Fees
The Udyam registration certificate will be issued within two to four business days on the registered email ID of the applicant. There is no cost for MSME registration on the Udyam Registration Portal, and it is free of cost.
Udyam Registration Certificate Format
Benefits of Udyam Registration Certificate
Below listed are the Udyam registration certificate benefits:
Due to MSME registration India, bank loans become cheaper as the interest rate is very low, around 1-1.5%, much lower than interest on regular loans
It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
Once registered the cost of getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available
MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders
There is a One Time Settlement Fee for non-paid amounts of MSME
The MSME registration will help the MSMEs in availing the benefits of government schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments, etc.
MSMEs are eligible for priority sector lending from banks
MSMEs get the benefit of a government security deposit waiver that is helpful while participating in e-tenders
Any number of activities, including service or manufacturing or both, may be added or specified in one MSME registration
Barcode registration subsidy
Exemption scheme from direct taxes
ISO certification fees reimbursement
Electricity bills concession
Special consideration in International trade fairs
Mistakes to Avoid While Applying for a Udyam Registration Certificate
Here are some of the common mistakes to avoid while applying for a Udyam Registration Certificate:
Providing incorrect information on the Udyam registration form on the Udyam portal.
Mistakes in the Aadhaar and PAN number of the proprietor, partner or authorised signatory.
Entering the wrong NIC code.
Not checking the MSME eligibility criteria or applicability.
Not selecting the right type of enterprise.
Not entering all the activities of the enterprise.
How to Download Udyam Registration Certificate Online?
Entrepreneurs can download their Udyam registration number by following the below steps:
Click on the ‘Print/Verify’ option and click on the ‘Forgot Udyam/ UAM No’ option.
Choose the registration option as Udyam registration, choose the OTP option, enter the mobile number/email and click on the ‘Validate & Generate OTP’ button.
Enter the OTP received on the mobile/email and click on the ‘Validate OTP and Login’ button.
After validation of the OTP, the Udyam registration number will be sent to the entrepreneur on the mobile/email as selected by the entrepreneur.
Udyam Registration Certificate Renewal
The Udyam registration certificate issued to MSMEs is valid for a lifetime. Thus, there is no requirement for Udyam registration certificate renewal.
The Udyam registration certificate is an important document for MSME entrepreneurs to obtain the benefits provided to MSMEs. The Ministry of the MSME issues the Udyam registration certificate to those enterprises that fall under the MSME category. The Ministry of MSME gives an e-certificate and does not provide a hard copy after the MSME registration process is completed. The entrepreneurs can get a hand copy of the Udyam registration certificate by taking its printout from the Udyam registration portal.
Upon completion of MSME registration, MSMEs receive the MSME/Udyam Registration Certificate from the Ministry of MSME. This certificate contains the details of MSMEs and the 19-digit MSME Registration Number.
Why is it important to get a Udyam Registration Certificate?
Though getting the Udyam Registration Certificate is not mandatory, it is beneficial for MSMEs to apply for an MSME Registration and get the Udyam Registration Certificate. When an enterprise has the Udyam Registration Certificate, they are eligible to obtain various benefits provided by the government to MSMEs.
Who is eligible for a Udyam Registration Certificate?
A proprietorship, partnership firm, company, trust or society with an annual investment below Rs.50 crore and annual turnover below Rs.250 crore can apply for MSME registration and obtain the Udyam Registration Certificate.
What are the documents required for applying for a Udyam Registration Certificate?
The documents required for applying for a Udyam Registration and obtaining a Udyam Registration Certificate are an Aadhaar card and a PAN card. GST registration is also required if the enterprises must obtain GST registration under the GST law.
How can I apply for a Udyam Registration Certificate?
When you complete the MSME registration, the Ministry of MSME will send you the Udyam Registration Certificate. You can apply for MSME Registration on the Udyam portal.
How long does it take to process a Udyam Registration Certificate application?
The Udyam Registration Certificate will be issued within two to four business days after applying for Udyam registration on the registered email ID of the applicant.
What is the validity of Udyam Registration Certificate?
The Udyam Registration Certificate is valid for a lifetime.
Do I need to renew my Udyam Registration Certificate?
Since the Udyam Registration Certificate is valid for a lifetime, you need not renew your Udyam Registration Certificate.
What should I do if I lose my Udyam Registration Certificate?
You can get the print of the Udyam Registration Certificate online if you lose it through the Udyam portal.
Is the Udyam certificate mandatory?
No. Though it is not mandatory, it is beneficial for MSMEs to get the Udyam Registration Certificate as they can obtain various benefits the government provides to MSMEs.
Is Udyam certificate free to download?
Yes. The Udyam registration is free of cost on the Udyam portal.
About the Author
Mayashree Acharya
Senior Content Writer
I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more
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.