Udyam Portal: 3.5 Cr MSME Registrations Achieved

The Udyam portal, launched by the Ministry of Micro, Small and Medium Enterprises (MSME) in July 2020, has crossed the milestone of 3.5 crore registrations as of January 2024. The portal aims to simplify the process of MSME registration and provide various benefits to the entrepreneurs.

What is Udyam portal?

The Udyam portal is an online platform that allows entrepreneurs to register their micro, small and medium enterprises (MSMEs) in a hassle-free manner. The portal is based on self-declaration and does not require any documents or fees for registration. The portal also provides a permanent registration number and a certificate with a dynamic QR code that can be accessed online.

The portal was launched on July 1, 2020, as part of the government’s Atmanirbhar Bharat initiative to boost the MSME sector, which contributes to about 30% of India’s GDP and employs over 11 crore people. The portal also aims to implement the revised definition of MSMEs, which was announced by Finance Minister Nirmala Sitharaman in May 2020.

According to the new definition, an enterprise is classified as a micro enterprise if its investment in plant and machinery or equipment does not exceed Rs 1 crore and turnover does not exceed Rs 5 crore; a small enterprise if its investment does not exceed Rs 10 crore and turnover does not exceed Rs 50 crore; and a medium enterprise if its investment does not exceed Rs 50 crore and turnover does not exceed Rs 250 crore.

How to register on Udyam portal?

To register on Udyam portal, an entrepreneur needs to have an Aadhaar number and a PAN number (as per applicability of CGST Act 2017). The registration process is simple and can be completed in a few steps:

• Visit the official website, udyamregistration.gov.in
• Click on ‘New registration’ on the homepage
• Enter the Aadhaar number and name of the entrepreneur and click on ‘Validate & Generate OTP’
• Enter the OTP received on email or mobile number
• Enter the required details on PAN verification page
• Fill in the Udyam registration form with details such as name of enterprise, type of organization, address, bank account number, NIC code, number of employees, etc.
• Submit the form and get the Udyam registration number and certificate

What are the benefits of Udyam registration?

Udyam registration provides various benefits to MSMEs such as:

• Collateral-free loans from banks under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme
• Subsidy on patent registration, barcode registration, ISO certification, etc.
• Preference in government procurement and public sector undertakings (PSUs)
• Exemption from payment of earnest money deposit (EMD)
• Protection against delayed payments from buyers
• Eligibility for various schemes and incentives under MSME ministry such as Cluster Development Programme, Technology Upgradation Fund Scheme (TUFS), Prime Minister’s Employment Generation Programme (PMEGP), etc.
• Access to online grievance redressal mechanism through Champions portal