Udyam Registration-Meaning, Process and Requirements for Registration

Udyam Registration process
Sanchita Choudhary
| Updated: Oct 14, 2020 | Category: MSME

The Indian Government in the year 2020 has been taking various measures in order to tackle the adverse situations caused by the pandemic thus emphasizing more on the small business. These small sized or medium sized business forms the backbone of an economy especially for a country like India which is still in the developing phase. In order for a smooth flow of economy it is thus crucial to look after the Micro Small or Medium sized business (MSME) which could further led to the development of the MSME sector.


The word “MSME” has been defined under section 7 of the Micro, Small and Medium Enterprises Development Act, 2006.The Finance Minister on 1st June, 2020 amended the definition of MSME. Section 7(2) of the MSME Act, 2006 states the Central Government shall constitute an advisory committee by notification. The Central Government further notifies certain criteria for the classification of these enterprises as micro, small and medium enterprises and it also specifies the form and procedures for filing the Udyam Registration effective from 1st July, 2020.

Meaning of Udyam                 

Any such company or enterprise or business successfully registered under the Ministry of Micro, Small and Medium Enterprises are referred as Udyam under Udyam Registration Portal.

Meaning of Udyam Registration

Udyam Registration is an online portal for registration for micro, small or medium sized company or enterprises provided by the Indian government. Any person who wants to establish any such business may file for Udyam registration online in the Udyam Registration Portal.

Classification of Enterprises

Enterprises Classifications

An enterprise can be classified as micro, small or medium enterprise on the basis of the following:

  • Micro Enterprise- Any investment made in plant should not exceed 1 crore and turn over should not exceed 5 crores.
  • Small Enterprise- Any investment made in plant should not exceed 10 crores and the turnover should not exceed 50 crores.
  • Medium Enterprise- Any investment made in plant should not exceed 50 crores and the turnover should not exceed 250 crores.

Udyam Registration Process

The process for Udyam Registration is quite and simple and involves following steps:

Udyam registration process
  • STEP 2-Fill all the details as asked in the registration form. Make sure all the information entered are filled correctly in order to avoid discrepancy.
  • STEP 3-Make online payment for the application to be registered.
  • STEP 4– Any registration executive will further process the application.
  • STEP 5– In next few hours you will receive Udyam Registration Certificate on your registered email address.

Documents Required for Udyam Registration Process

  • The MSME registration under Udyam Registration is paperless and is based only on self-declaration.
  • The form for the purpose of registration shall be as provided on the Udyam Registration Online portal.
  • No registration fee is applicable for the process.
  • In case of the proprietorship firm the Aadhar Number shall be of the proprietor, in case of a partnership firm the Aadhar number shall be of the Managing Director and in case of Hindu Undivided Family shall be of Karta.
  • In case of any company or a LLP or any society or a cooperative society or even a Trust the authorised signatory shall provide its GSTIN and PAN number along with the Aadhar Number.
  • Any enterprise which is duly registered as an Udyam with PAN, if any discrepancy is found in information related to previous years when PAN was not provided then the same shall be filled up on a self- declaration basis.
  • Whoever intentionally misrepresents or tries to hide the self declared facts during the process of Udyam registration shall be liable for the penalty as specified under section 27 of the Act.

Registration of Existing Enterprises

  • All existing enterprises registered under EM-Part II or UAM shall register again on the Udyam Registration Portal on or after the 01.07.2020.
  • All enterprises which were registered till 30th June, 2020 shall be re-classified in accordance with this notification.
  • The existing enterprises registered prior to 30th June, 2020 shall deemed to be valid only for a period up to 31.03.2021 .

Griveance Redressal Related To Udyam Registration

If a person fails to file the Udyam Registration for reasons such as lack of Aadhar Card or Number then in such case they may approach to any Single Window Systems for the purpose of registration with his Aadhar enrolment identity slip or a copy of bank pass book or a copy of voter identity card or even a driving licence. The single window system will further facilitate the process even getting an Aadhar number.


Whoever knowingly or unknowingly attempts to suppress the self declared facts and figures in the Udyam Registration or for updation process shall be held liable:

  • In case of first offence, with a fine which may extend up to Rs.1000;
  • In case of second offence or of an subsequent one with fine which shall not be less than Rs 1000 but may extend up to Rs 10,000.


The Indian government in the year 2020 has made every effort in order to make India “Atmanirbhar”. MSME –UDYAM platformhas not only redefined MSME criteria but have also launched various services which will give an uplift to business of small and medium enterprises. The new process is quick and easy method for registration that will be futher linked to information submitted under Income tax return and GST. If you want more information regarding this or looking for any professional consultant for filing the Udyam Registration then do not hesitate to get in touch with us Swarit Advisors.

Also, Read: Udyog Aadhar Registration Fees and Process: A Complete Guide

Sanchita Choudhary

Sanchita has completed her BALLB in the year 2016 . She has an experience of 2+years of working in a corporate law firm. She also worked as an Legal Associate in Corporate legal industry and handled matters for litigation.

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