Demystifying Udyam Registration: A Comprehensive Guide for Small Businesses

What is Udyam Registration? 

Udyam Registration is an online process introduced by the Indian government for the registration of micro, small, and medium enterprises (MSMEs). It replaced the earlier process of MSME registration and brought about certain changes in terms of classification and documentation. 

How does it differ from the earlier process of MSME registration?

MSME (Micro, Small, and Medium Enterprises) registration process in India has been replaced by the Udyam Registration process. The shift from MSME to Udyam is essentially a rebranding and streamlining of the registration process. Here are some key differences:

Name and Terminology

  • MSME: The registration was known as MSME registration, representing Micro, Small, and Medium Enterprises.
  • Udyam: The registration process is now called Udyam Registration, aligning with the Indian government’s initiative to promote entrepreneurship and self-reliance.

Criteria for Classification

  • MSME: The classification was based on both investment in plant and machinery and turnover of the enterprise.
  • Udyam: The classification is primarily based on the annual turnover of the enterprise.

Single Form for Registration

  • MSME: Different forms were used for registration based on the size and type of enterprise (Form I and Form II).
  • Udyam: There is a single online form for Udyam Registration, making the process more straightforward and user-friendly.


Government Portal

  • MSME: The registration was done on the Udyog Aadhaar Memorandum (UAM) portal.
  • Udyam: The registration is carried out on the Udyam Registration portal.

Validity Period

  • MSME: The registration under UAM was valid for a lifetime.
  • Udyam: The Udyam Registration certificate is valid for a lifetime unless there are changes in the enterprise’s status, requiring an update.

Updation of Information

  • MSME: Updation of information was not a frequent requirement.
  • Udyam: Businesses are required to update their information, including turnover and investment, regularly.

Details modification after the Udyam Registration has been approved

After the Udyam Registration has been approved, businesses have the provision to make modifications to their details. Here’s how you can go about it:

Visit the Udyam Registration Portal

Access the official Udyam Registration portal, which is managed by the Ministry of Micro, Small, and Medium Enterprises (MSME).

Login to Your Account

Log in to your Udyam Registration account using the credentials you used during the registration process.

Access the Modification Section

Look for the section or option that allows you to make modifications to your registration details. This section is typically labeled as “Update” or “Modify Details.”

Provide Necessary Information

Enter the updated or corrected information as required. This may include changes in business name, address, contact details, or other relevant information.

Upload Supporting Documents

If there are changes that require supporting documents, ensure that you upload the necessary files as per the portal’s guidelines.

Review and Submit

Before submitting the modifications, carefully review the information you’ve provided to ensure accuracy. Once you are satisfied, submit the updated details.

Wait for Approval

After submitting the modifications, the concerned authorities will review the changes. The approval process may take some time, and you may be able to track the status of your modification request on the portal.

Download Updated Certificate

Once the modifications are approved, you can download the updated Udyam Registration certificate reflecting the changes.

Keep a Record

It’s essential to keep a record of the updated information and the modified certificate for your records and future reference.

Consequences for a business that fails to register under Udyam despite being eligible

Failure to register under Udyam, despite being eligible, can lead to various consequences for a business. It’s important for eligible businesses to comply with the registration requirements to avail themselves of the benefits and protections provided by the government. Here are some potential consequences:

Loss of Benefits and Incentives 

Udyam Registration provides businesses with various benefits, including access to government schemes, subsidies, and other incentives. Failure to register may result in the loss of these benefits.

Exclusion from Government Procurement Opportunities 

Many government procurement processes give preference to registered MSMEs. Without Udyam Registration, a business may be excluded from participating in such opportunities.

Limited Market Access

Udyam Registration is often considered a mark of credibility, and it may be a requirement for participating in certain business activities or collaborations. Failure to register may limit the business’s market access and opportunities.

Missed Opportunities for Financial Support

Some financial institutions and banks may offer special schemes or financial assistance to registered MSMEs. Without Udyam Registration, a business may miss out on these opportunities for support and funding.

Reduced Competitive Advantage

Udyam Registration can enhance the competitive advantage of a business, especially in the context of government tenders and contracts. Failing to register may reduce the business’s competitiveness in such scenarios.

Lack of Legal Protections

Udyam Registration provides legal recognition to the business entity. Without it, the business may not benefit from the legal protections and safeguards that the government offers to registered MSMEs.

Difficulty in Obtaining Licenses and Permits

Some licenses and permits may require Udyam Registration as a prerequisite. Failing to register may result in delays or difficulties in obtaining necessary licenses and permits for business operations.

Ineligibility for Subsidies and Concessions 

Governments often provide subsidies and concessions to registered MSMEs. Without Udyam Registration, a business may be ineligible for these financial advantages.

Also read: Download Udyam Registration Certificate


Udyam Registration is a crucial process for businesses in India, particularly for small and micro enterprises seeking recognition and support from the government. Failing to register despite eligibility can have significant consequences, impacting a business’s access to benefits, incentives, and opportunities. 

Related Articles

Leave a Reply

Back to top button