What is “Udyam Registration” and the new process of MSME Registration effective from 01 July,2020?


From the 1st day of July, 2020, the Central Government notifies certain criteria for classifying the enterprises as micro, small and medium enterprises (MSME) and specifies the form and procedure for Registration (hereafter in this article to be known as “Udyam Registration”)

What is “Udyam Registration”?

From the 1st day of July, 2020 all the enterprises that are classified as micro, small and medium enterprises (MSME) as per new criteria are required to get registration from the new portal of MSME registration that is “Udyam Registration”. In simple words, the Government of India changed the procedures of MSME registration from Udyog Aadhar to Udyam Registration from 1st, July 2020.

for old procedures, you can read “What is MSME and Udyog Aadhaar? Procedures for Registration of MSMEs”

Note:- Except for this portal of Government of India and Government’s Single Window Systems, no other private online or offline system, service, agency, or person is authorized or entitled to do MSME Registration or undertake any of the activity related with the process.

Government has organised a full system of Facilitation for Registration of MSME:-
  • An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as ‘Udyam Registration’
  • A permanent registration number will be given after registration.
  • After completion of the process of registration, a certificate will be issued online.
  • This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
  • There will be no need for renewal of Registration.
  • Our single window systems and at DICs will help you in the process.
  • Registration Process is totally free. No Costs or Fees are to be paid to anyone.

Classification or criteria of Enterprises :-

An enterprise shall be classified as a micro, small or medium enterprise(MSME) on the basis of the following criteria, namely:-

Investment in plant & machinery or equipment, and<1 crore<10 crore<50 crore
Turnover<5 crore<50 crore<250 crore
“<” means less than

How to Register a Micro, Small and Medium Enterprise (MSME)?

  •  Any person who intends to establish a micro, small or medium enterprise(MSME) may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
  •  On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identification number to be known as “‘Udyam Registration Number”.
  •  An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.

Features of Udyam Registration Portal:-

  • MSME registration process is fully online, paperless, and based on self-declaration.
  • No documents or proof are required to be uploaded for registering an MSME.
  • Only Adhaar Number will be enough for registration.
  • PAN & GST details on investment and turnover of enterprises will be taken automatically from Government databases.
  • Our online system will be fully integrated with Income Tax and GSTIN systems.
  • Having PAN & GST number is mandatory from 01.04.2021.
  • No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.

For Existing Enterprises who are already registered under EM Part-II or UAM?

  1. All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
  2. All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
  3. The existing enterprises registered prior to 30th June,2020, shall continue to be valid only for a period up to the 31stday of March, 2021.
  4. An enterprise registered with any other organization under the Ministry of Micro, Small, and Medium Enterprises shall register itself under Udyam Registration.

!!!Thank You!!!

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