A guide to Udyam registration

Discover how Udyam Registration empowers small businesses by simplifying the registration process and unlocking plenty of benefits and government support for accelerated growth and success.

What is Udyam Registration?

On July 1, 2020, the Government of India introduced the Udyam Registration process with the objective to promote the ease of doing business in India. Udyam registration was introduced to eliminate the need of multiple registrations and simplify the registration process to provide access to schemes, and enhance credit facilitation. This registration process is absolutely complementary and is carried out online using the Government portal.

Enterprise Classification Investment & Turnover Amount
Micro Enterprise The invested amount does not exceed ₹1 crore and the turnover does not exceed ₹5 crore
Small Enterprise The invested amount does not exceed ₹10 crore and the turnover does not exceed ₹50 crore.
Medium Enterprise The invested amount does not exceed ₹50 crore and the turnover does not exceed ₹250 crore.

Which enterprises can register?

Enterprises are eligible for the registration if they fit in any one of the three classifications identified by the government on the basis of the investment amount in plant, machinery and equipment; and the turnover. This registration process is also known as Micro, Small and Medium Enterprises (MSME) Registration.

What are the advantages of Udyam Registration?

This registration process is not compulsory but is beneficial for the enterprises as they can gain support from the Government for business growth. The enterprises that successfully undergo the Udyam Registration process get advantages such as collateral free loans, lower interest rates, concessions to various bills by the Government, direct tax laws rules exemption, reservation policies for certain sectors, access to various schemes and subsidies, etc. There are a variety of customised financing solutions U GRO Capital can offer to micro and small business owners. To get started, you can explore our various loan offerings. Get started today!

How can enterprises start the process step by step?
The Government of India has made sure to keep the MSME Registration simple by keeping the documentation limited and the process online. Enterprises should register for this using the Government of India’s portal and Government’s Single Window System. This process is completely paperless and free.

Step 1: To initiate the registration process, the business owners need to visit the official website (https://udyamregistration.gov.in/). An account is to be created using the Aadhaar Card, along with an OTP for validation.

Step 2: In conjunction with this, basic documents and details are required to be submitted such as:

• Entrepreneur’s Aadhaar Card and Pan Card numbers
• GSTIN & ITR number
• Name, Address and Type of the organisation
• Main business activity of the enterprise
• Information of the employed persons
• National Industrial Classification (NIC) Code for Activities
• Bank Details

Step 3: A self-declaration has to be submitted stating the accuracy of the information signed by the owner.

Step 4: Review and submit the application form. Once the registration is successful, the issued certificate or registration does not need renewal.

Upon successful registration of a particular enterprise under any one of the three classifications, the enterprise receives a unique and permanent identification number called the Udyam Registration Number (URN) along with an online certification without validity. The certificate has an interactive QR code that allows to access the information of the enterprise from the Government portals’s web page.

Only the Indian Government’s website has the authority to execute the Udyam Registration process. No other intermediary, agency, offline system or person is authorised to perform the registration.

Conclusively, it is not mandatory but is advisable to all MSMEs to register themselves under the Udyam Registration so as to avail several benefits. The procedure is not tedious and requires minimal documentation which makes it easy for the MSME owners to carry it out by themselves and rightfully take the advantage of benefits that come with the registration.

Disclaimer: This write up is prepared on 12th July 2023 based on the publicly available information and is for general information purposes only. The information provided herein is not exhaustive and you may visit https://eudyam.com for more and detailed information on the subject.


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