COMP-001
Guide Details
| Guide Title | Udyam Registration |
|---|---|
| Compliance Area | Udyam |
| Applies To | All MSMEs |
| Governing Authority | Ministry of Micro, Small and Medium Enterprises (MSME), Government of India |
Content
| Summary | The Udyam Registration is the official, permanent recognition portal issued by the Ministry of MSME. It digitizes and simplifies the identification of an enterprise, replacing the old EM-I/II or Udyog Aadhaar Memorandums (UAM). |
|---|---|
| Step-by-step | Step 1: Aadhaar Verification * For Proprietorships: Aadhaar of the proprietor. For Partnerships/LLPs: Aadhaar of the managing partner. For Companies/Cooperative Societies: Aadhaar of the authorized signatory. Step 2: PAN & GST Validation * Enter the Permanent Account Number (PAN) of the business entity. The portal automatically syncs with the Income Tax and GSTN databases to pull investment and turnover details. Step 3: Enterprise Details * Input the business name, location of the plant/unit(s), official bank account details, and major activity (Manufacturing or Services). Step 4: National Industrial Classification (NIC) Code * Select the appropriate 2, 4, or 5-digit NIC code that accurately describes your primary business operations. Step 5: Submission & Certification * Submit the form via an OTP sent to the registered mobile number. Upon successful verification, a permanent Udyam Registration Number (URN) and an e-Certificate are generated. |
| Key Due Dates | While the certificate itself has lifetime validity once issued, there is a recurring annual compliance requirement: Annual Auto-Update: The Udyam portal automatically updates its investment and turnover figures every year based on your filed ITR and GST returns. Mandatory Self-Update: If there are structural changes to your business (e.g., adding a new manufacturing unit, changing bank accounts, or updating contact details), the enterprise must log in and manually update the profile. Re-classification Window: If an enterprise outgrows its current category limits due to increased turnover or investment, it is automatically re-classified (e.g., from Micro to Small). Upgradations take effect on July 1st following the financial year-end, while downgradations take effect on April 1st of the next financial year. |
| Penalties for Non-compliance | Financial Penalty: Anyone who intentionally misrepresents or suppresses essential business data (such as suppressing true turnover to stay classified as a "Micro" enterprise for subsidies) can face a fine of up to ₹1,000 for the first offense, and between ₹1,000 and ₹10,000 for subsequent offenses. Cancellation of Status: The Ministry reserves the right to freeze, suspend, or permanently cancel the Udyam registration if major discrepancies are found during verification audits. Loss of Protective Benefits: Cancellation immediately strips the business of legal protections, such as the right to file cases against delayed payments under the MSME Samadhaan portal or claiming interest subventions from banking institutions |
Reference
| Official Source URL | https://www.udyamregistration.in/new-udhyam-registration |
|---|---|
| Verified On | 2026-05-26 |