Udyam Registration has become a mandatory document for entrepreneurs doing business in India, regardless of their size (small or large). This guide will familiarise you with its importance and utility. Launched by the Ministry of MSME on July 1, 2020, this portal is a digital platform connecting small businesses with government benefits and incentives. The biggest advantage of this registration is that it is completely paperless, free of cost, and digital, making it easily accessible to every business owner.
About Udyam Registration Number
The Government of India has introduced a permanent registration number for MSMEs called Udyam Registration Number. This system has replaced the old Udyog Aadhaar and is now the officially recognised system. The certificate includes a QR code that instantly verifies the authenticity of your business, and it is very easy to obtain online.
Udyam Number: Your Business’s Digital Identity
Unique Business ID: Every business registered on Udyam receives a unique number called the URN (Udyam Registration Number). This is your business’s official government identification.
Standard Format: The URN is a 19-digit unique code that is printed on every certificate. It also includes information about your state and district.
Government Recognition: This number is issued by the Ministry of MSME under the MSME Act, 2006, proving that your business is officially recognised by the government.
Benefits: Using this number, you can avail of government loans, subsidies, and tenders.
Verification: Businesses can check and verify their Udyam Registration Number online to ensure authenticity and get
Legal recognition: Holding a URN signifies the enterprise is formally recognised and registered under the Act. providing legal and financial advantages
Accessibility: the URN aids in simplifying processes related to financial borrowing, tax rebates, and participation in specific government tenders and schemes
Example: A Typical URN appears in this format: UXXXXXXXXXXX
Why is URN Important?
If you have this number, you can avail the following benefits:
- Bank Loan: Easier access to bank loans without any collateral (security).
- Payment Protection: Under MSME Samadhaan, if a buyer fails to make payment within 45 days, you can take legal action.
- Government Tenders: Priority and exemptions in government tenders.
- Subsidy: Potential subsidies on patent registration and electricity bills.
- Current Account: This serves as valid proof for opening a bank account in the name of your business.
Information Required for Udyam Registration:
Udyam registration is a completely paperless process, so you do not need to upload any physical copies of documents. However, for successful registration, you must have the following information:
- Aadhaar Details: Aadhaar number of the business owner (Proprietor), Managing Partner, or Karta.
- PAN Identification: Business’s PAN card (in the case of a proprietorship, the individual’s PAN is acceptable).
- GSTIN Compliance: If your turnover falls within the GST threshold, a GST registration number is mandatory.
- Financial Details (Bank Details): Bank account number and IFSC code.
- Mobile Number: The number linked to your Aadhaar (for OTP).
The Step-by-Step Registration Process
- Filing of application for Udyam Registration
For the initial process of your business, fill out the form on udyam website.
Correctly in the MSME registration form so that your information is complete and accurate for easy access.
- Completed the payment process online
Make your payment securely with just a few clicks. Fast, safe, and hassle-free
- The team will work on your application.
Our expert team will contact you and carefully process your Udyam Registration application by asking for some details.
- Receive the certificate in your Gmail
Once the Udyam Registration is approved, the certificate is sent directly to your provided email address, which you can easily download
- Investment & Turnover: You will have to fill in the investment and turnover of the previous year (this data is also auto-fetched from Income Tax).
- Final Submit: After checking all the information, click on “Final Submit”. You will receive a Udyam Registration Number.
Where is the URN Used?
You should mention your Udyam Number in the following places:
- Invoices (Bills): Write “MSME Reg. No: UDYAM-XX-…” on every bill. This informs the buyer that they may incur interest if a payment is made late.
- Tax Returns: This number is used in the MSME section while filing your ITR.
- Bank Loan Applications: The bank manager will ask for your URN first.
- Letterheads & Business Cards: To show professionalism, people also print their contact information on their business cards.
URN Validity and Changes
The Udyam Registration Number is completely permanent. Once issued, it remains the same forever. Even if your business grows and its category changes, your number will not change; only the new category will be printed on the certificate. The best part is that you don’t have to renew it repeatedly, nor do you have to pay any renewal fees.
What to Do If You Forget Your Udyam Number?
If you have forgotten your URN:
- Click on “Forgot Udyam/Reg No.” on the official website.
- Enter your registered mobile number or email address.
- You can retrieve your number via OTP.
Precautions (Important Tips)
- Beware of Frauds: Many private websites charge people ₹500 to ₹2000. Remember that the government’s Udyam portal is completely free.
- Updates: If your turnover increases or your business address changes, you can also ‘Edit’ it on the portal.
- Single Registration: Only one Udyam registration is possible per Aadhaar number, but you can add multiple activities (Manufacturing and Service) under a single registration.
Conclusion
In today’s era, if you want to expand your business and take advantage of government schemes (such as PMEGP loan or Mudra loan), having a Udyam Registration Number is mandatory. It gives your business a legal identity and builds trust in the market.
