Business registrations in India have risen to an all-time high as many entrepreneurs and organisations have rolled up their sleeves to employ the youth of our country. Companies in India are divided into micro, small and medium enterprises and large-scale industries; a company’s registration is based on the sector they belong. Every business needs to have a set of certifications from the Ministry to be declared legal and legible. One of the certifications is the Udyam Registration for Micro, Small and Medium enterprises. 

What is MSME?

All up and coming businesses are registered under the Ministry of Micro, Small and Medium Enterprises Development Act, 2006. The companies are categorised based on their plant, machinery, and annual turnover investment. If the annual turnover is not more than five crores and the investment is less than one crore, it’s a micro-enterprise. If the annual turnover is not more than 50 crore and the investment is less than ten crores, it’s a small enterprise. If the turnover is not more than 250 crore and the investment is less than 50 crore, it’s a medium enterprise. 

All new businesses under these categories need to have certain documents to apply for MSME certification, and Udyam Adhar(Udyog Adhar) is one of them. 

What is Udyam Aadhaar 

Udyam Registration is a government portal for registering the MSME certificate. You can report for a new business or re-register for a company under the Entrepreneurs Memorandum. This portal is handled by the Micro, Small and Medium enterprises and provides the steps for free registration. It’s a user-friendly portal free of cost and paperless registration. Udyam registration replaces Udyog Aadhaar as it is a single-window process with no additional documents or certificates required. 

How to Register for Udyam Aadhaar 

  1. Step-1 : New applicants need to visit the MSM portal and register under

    New applicants need to visit the MSM portal and register under “New Entrepreneurs who are yet to register under MSME”. People who already have Udyog Adhar and want to re-register under Udyam can opt for the migrate option of “For those already having registration as UAM”.

  2. Step 2 : Page opens to fill in the Applicant’s name and Adhar number

    Once the “New entrepreneurs who are yet to register” link is clicked on; the page opens to fill in the Applicant’s name and Adhar number. If you’re in a proprietorship, then fill in the Adhar number of the company. In a partnership, fill in the name of the authorised person who holds the most liability. After filling in, press on “Validate and Generate OTP”.

  3. Step 3: Enter OTP

    After the OTP is validated by receiving it on your number, the portal opens up a page asking for PAN details. If your PAN number already exists by an older registration, your Udyam registration is complete through the already existing entrepreneur option. Enter the type of business organisation for a new business and fill in your PAN number. 

  4. Step 4: Enter the following required information in the next portal 

    1. Mobile number
    2. Email Address
    3. The social category of General, SC/ST, OBC 
    4. Gender 
    5. Name of Enterprise and Unit
    6. Office Address and Enterprise production status
    7. Bank details 
    8. Primary Activity option- Manufacturing / Services
    9. National Industrial Classification( Your enterprise industry) 
    10. Employee numbers and Investment expenditure, and Annual turnover 
    11. Check the box to register under the Government E-market portal and TReDS portal. 
    12 .Read the terms and conditions, check Agree, and submit the form to validate with OTP. 

  5. Step 5: Print/verify your status of the Udyam registration.

    Print/verify your status of the Udyam registration. The option on the home page provides all the services for Udyam Aadhaar. 
    The Udyam Registration certificate will have a dynamic QR code through which enterprise details and web portal can be accessed anytime. 

Benefits of Udyam Aadhar Registration

The best part about obtaining a Udyam registration number is that the process is straightforward for any newcomer and wholly paperless and accessible through the online and offline portal. The Ministry of Small Enterprises provides many benefits to all the businesses enrolled under the Udyam scheme to assist growth in their startup phase. 

  • After Udyam registration, your business is eligible for government schemes to avail of loans without guarantee and low interest.
  • Open bank accounts easily without additional documentation.
  • Free loans and low-interest rates from banks 
  • Time extension for delayed payments 
  • Credit guarantee scheme benefits 
  • Electricity bills concession

Frequently Asked Questions

What is the difference between MSME registration and Udyog Adhar Registration? 

These registrations are similar, but the Udyog Adhar registration process is easier to obtain for the certification and can be used for the same enterprise.

 Is it possible to apply for Udyog Aadhaar without an Aadhaar Card number?

The Aadhaar number is necessary for many critical applications, and the best advice would be to apply for one immediately. However, in an exceptional situation, one can apply through the offline model with the General Manager of the concerned District Industry Centre.

3. What is the difference between Udyog Aadhaar Memorandum and Udyam Aadhaar Memorandum? 

The Indian government has provided a more accessible option to file for the MSME certificate as the Udyog Adhar certification contained many categories and pages that were time-consuming and confusing. Currently, Udyam Adhar does not need any paperless documents, thus leading to more online registrations than ever.

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