What is Udyam Registration?
Udyam Registration is the official process by which a business is recognized as a Micro, Small, or Medium Enterprise in India. It replaces the older Udyog Aadhaar system and offers a completely online and integrated platform, linked with PAN, Aadhaar, and GST databases.
Eligibility Criteria Based on Investment & Turnover:
- Micro Enterprises: Those with capital investment up to ₹2.5 crore and an annual turnover not exceeding ₹10 crore.
- Small Enterprises: Businesses having investments up to ₹25 crore and turnover up to ₹100 crore.
- Medium Enterprises: Firms with investment ceilings of ₹125 crore and turnover limits up to ₹500 crore.
Once registered, the enterprise receives a unique Udyam Registration Number (URN) and a digitally signed certificate.
Why Government Schemes Matter for MSMEs
MSMEs are the backbone of the Indian economy, contributing around 30% to the GDP and employing over 11 crore people. To empower these businesses, the government has launched numerous support schemes. However, to access these, Udyam Registration is mandatory.
How to Register on the Udyam Portal
- Go to the Udyam Portal: Open the official Udyam Registration website on your browser.
- Enter Business Details: Provide your business name, type, address, and bank details carefully. Accuracy is important.
- Check and Submit: Review all the information you’ve entered, then submit the form.
- Pay Registration Fee: Complete the payment using the available online methods.
- Receive OTP: A one-time password will be sent to your Aadhaar-linked mobile number.
- Verify OTP: Enter the received OTP to confirm your identity.
- Complete the Process: After verification, your registration will be successfully processed.
- Download Certificate: Your Udyam Registration certificate will be emailed to you once the process is complete.
Credit Guarantee Fund Scheme (CGTMSE)
What It Offers:
- Collateral-free loans up to ₹2 crore for MSMEs
- Support from banks and NBFCs without needing personal guarantees
Udyam Benefit:
Banks require a valid Udyam certificate to verify the MSME status of the borrower. Without it, you won’t be eligible for collateral-free lending support under this scheme.
Interest Subsidy Schemes
Popular Schemes:
- Interest Equalization Scheme
- Credit Linked Capital Subsidy Scheme (CLCSS)
Udyam Benefit:
These schemes offer reduced interest rates on loans, sometimes by 2–5%. Registered MSMEs are automatically eligible when applying through their bank or financial institution.
MUDRA Loans under PMMY
The Pradhan Mantri MUDRA Yojana (PMMY) provides loans up to ₹10 lakh to non-corporate, non-farm small businesses.
Udyam Benefit:
Though not mandatory, having Udyam Registration adds credibility to your application and improves your chances of approval for higher loan amounts under Shishu, Kishor, and Tarun categories.
Government E-Marketplace (GeM) Registration
GeM is the official platform where MSMEs can sell goods and services to various government departments.
Udyam Benefit:
Udyam Registration is a prerequisite for sellers to register on GeM. It also qualifies you for MSME-specific filters and priority procurement policies.
Procurement Policy & Tender Benefits
According to the Public Procurement Policy for MSEs, every central government department must procure a minimum of 25% of goods and services from MSMEs.
Udyam Benefit:
- Exemption from EMD (Earnest Money Deposit)
- Preference in government tenders
- Price advantages in bidding
These benefits are reserved for enterprises with valid Udyam Registration.
Skill Development & Training Programs
Various skill development programs under the Ministry of MSME are aimed at workforce upskilling, entrepreneurship development, and innovation.
Udyam Benefit:
Only registered MSMEs can enroll in free or subsidized training programs such as:
- Entrepreneurship and Skill Development Programme (ESDP)
- Lean Manufacturing Competitiveness Scheme
- Incubation schemes for startups
Technology Upgradation & Infrastructure Support
Schemes like the ZED Certification (Zero Defect Zero Effect) and Cluster Development Programme provide:
- Technology adoption subsidies
- Equipment financing
- Infrastructure support
Udyam Benefit:
These schemes need authenticated enterprise data, which Udyam Registration enables by integrating with PAN and GST systems.
Export Promotion Schemes
MSMEs can avail of:
- Export subsidies
- Marketing assistance
- Participation in international trade fairs
Udyam Benefit:
With Udyam Registration, MSMEs can register with Export Promotion Councils and apply for export incentives under the MEIS and SEIS schemes.
Subsidy on ISO Certification
MSMEs are encouraged to get ISO 9001, ISO 14001, and HACCP certifications to ensure product quality and process efficiency.
Udyam Benefit:
Registered enterprises can claim up to 75% reimbursement on the cost of certification.
Note: Now you can easily update udyam certificate through the Udyam portal
Conclusion
Udyam Registration is not just a digital certificate — it’s a powerful tool to unlock government schemes that can transform your business. Whether you’re looking for funding, visibility, skill development, or expansion, having Udyam status puts you on the fast track to growth. If you’re a startup, freelancer, manufacturer, or service provider, now is the best time to register under Udyam and take full advantage of the policies built to support your success.