Benefits of Udyam Registration for MSMEs? Udyog Aadhar Registration

Udyam aadhar registration is a government initiative in India that provides MSMEs with various benefits, including subsidies, more accessible credit, and more. 

It is a 12-digit unique identification number issued by the Ministry of Micro, Small and Medium Enterprises (MSME) to recognize the business enterprise as a Micro, Small, or Medium Enterprise.

Through the Udyam Portal, the enterprises themselves can obtain the udyam registration on a self-declaration basis. The portal is an integrated platform for online filing applications for registration and availing various clearances/approvals and filings related to MSMEs.

The benefits of Udyam Registration

1) Ease of doing business: the registration simplifies the process of starting and doing business in India for MSMEs. It replaces the previous system of obtaining multiple registrations and licenses from government departments and agencies.

2) Voluntary and free of charge: the registration is voluntary and free of charge. MSMEs can register themselves online through the Udyam Portal.

3) Unique registration number: Once registered, MSMEs will be given a unique registration number which can be used for availing various benefits and schemes offered by the government.

4) Access to government

What are the benefits of Udyam Registration for MSMEs in India?

The main objective of the registration is to simplify the process of starting and running a business in India for MSMEs. The udyam aadhar registration certificate is a single document that serves as proof of identity and business existence for MSMEs in India.

Some of the benefits of Udyam Registration for MSMEs are:

  1. It helps procure government tenders: As per the new Public Procurement Policy (PPP), central government departments and agencies must procure at least 20% of their total value of goods and services from registered MSMEs. Thus, the registration gives MSMEs a level playing field to compete for government contracts.
  2. It makes availing loans easier: Banks and financial institutions often ask for an MSME Certificate while sanctioning loans to small businesses. With registration, MSMEs can quickly obtain loans as their registration certificate can prove their identity and business existence.
  3. It helps get subsidies and incentives: The government provides various subsidy schemes and incentives for registered MSMEs to promote their growth and development. With registration, MSMEs can easily avail themselves of these benefits.

How to apply for Udyam Registration

To apply for registration, businesses must provide basic information about their company and products or services. You will also need to create a user account on the registration portal. Once registered, companies can log in and begin the application process.

The registration process is free of charge, and companies will only need to provide basic information about their business. This makes it an attractive option for small businesses in India looking to actively take advantage of the many benefits offered by this program.

What are the documents essentially required for Udyam Registration?

To register for Udyam, MSMEs will need to submit the following documents:

  1. A copy of valid identity proof (Aadhaar, PAN, Voter ID, etc.)
  2. A copy of the business registration certificate (if applicable)
  3. A copy of the latest income tax return (ITR)
  4. A bank statement or canceled cheque showing account details
  5. A self-declaration form stating that you are an eligible MSME

Tips To Enroll a New Business in UDYAM

  1. Determine if your business is eligible for the registration. To be eligible, businesses must be Micro, Small, or Medium Enterprises (MSMEs) as defined by the MSME Development Act, 2006.
  2. Gather the required documents. These include proof of business existence, identity and address proofs of the applicant and business, and other relevant documents specified by the Udyam Registrar.
  3. Register on the Udyam Portal. The portal provides an online application form that must be completed and submitted with the requisite documents.


Registration is an excellent way for MSMEs in India to access various benefits, including more accessible access to government contracts, subsidies, and loans.


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