MSME | Udyam Registration | Udyog Aadhaar Registration

What is Udyam Registration?

MSME Registration, also known as Udyam Registration, is a government-issued recognition certificate along with a unique identification number. It is essential for certifying that a small or medium business is legitimate and operational.

Is Udyog Aadhaar and Udyam the Same?

Udyam Registration and Udyog Aadhaar are two different initiatives, although their processes are quite similar. Once you have your 12-digit Udyog Aadhaar Number, applying for Udyam Registration becomes easier. Below are the major differences:

• Udyam Registration is fully integrated with government portals like GeM; Udyog Aadhaar is not.
• Udyam requires additional verification with Income Tax and GST systems.
• Udyam requires Aadhaar linked with a mobile number; Udyog Aadhaar does not.
• Multiple Udyog Aadhaar registrations were allowed, but only one Udyam Registration per Aadhaar is permitted.

What is the Unit Name in Udyam?

Under the Atmanirbhar Bharat reforms, MSME classifications changed to be based on turnover rather than only investment. There is no longer any separation between service and manufacturing enterprises.

• Micro Units: Investment up to ₹1 crore and turnover less than ₹5 crore
• Small Units: Investment up to ₹10 crore and turnover less than ₹50 crore
• Medium Units: Investment up to ₹20 crore and turnover less than ₹100 crore

Monetary Limits in the Udyam Certificate

As per the Government of India notification dated 26 June 2020, the revised classification of MSMEs based on investment and turnover is:

Additional points:

• New businesses without ITR can declare investment on a self-declaration basis.
• Turnover data must be linked with GSTN or Income Tax systems.
• Enterprises without PAN can file on a self-declaration basis initially.
• MSME Registration is now known as Udyam, and the permanent number issued is called the Udyam Registration Number.

Can a Trader Register Under MSME?

Yes. Traders falling under the Micro, Small, or Medium business category are eligible to register under MSME through Udyam Registration.

How to Register for MSME?

Businesses can register through the Udyog Aadhaar Memorandum (UAM) portal. The process is free and simple. Steps:

1. Visit the UAM portal and open the registration form.
2. Enter your name and Aadhaar number → click Validate & Generate OTP.
3. Submit PAN details (if available).
4. Fill fields 5 to 24 in the form.
5. Enter OTP received on your registered mobile and email.
6. After submission, you will receive a registration number.
7. Approval may take a few days; after approval, the MSME Certificate is emailed to you.