MSME Udyam Registration
The terms 'MSME Registration' and 'Udyam Registration' refer to the same process of registering Micro, Small, and Medium Enterprises in India. The Ministry of MSME introduced the Udyam Registration Portal on July 1, 2020, replacing the older Udyog Aadhaar system. This transition aimed to simplify the registration process, making it more streamlined and user-friendly. Under the Udyam system, businesses can register online with minimal documentation, primarily requiring the Aadhaar number of the proprietor or authorized signatory. This unified approach ensures that MSMEs are recognized and can avail themselves of various government benefits and schemes.
As of July 31, 2024, the Udyam Registration Portal, along with the Udyam Assist Platform, has registered approximately 4.77 crore MSMEs across India. Regarding recent amendments, on January 1, 2025, the Ministry of MSME issued a circular mandating the acceptance of Udyam Registration Certificates presented through DigiLocker. This initiative aims to enhance the ease of doing business by promoting digital document verification.
Additionally, on January 15, 2024, the Ministry emphasized the speedy disposal of grievances related to discrepancies or complaints concerning updating requests. It directed that actions on recommendations from the Directorate of Industries for cancellation or amendments of the Udyam Registration Certificate be completed within 48 hours.
Difference Between MSME Registration and Udyam Registration
The Ministry of MSME has rebranded the MSME Certificate as the Udyam Aadhaar Certificate, featuring a Unique Udyam Registration Number (UAN). While both registrations serve the same purpose, Udyam Registration is a simplified and digitalized version of MSME registration. In short, obtaining an MSME registration certificate has become easier with the introduction of Udyam Aadhaar.
What is MSME Registration?
Introduced on October 2, 2006, MSME Registration was designed to promote and enhance the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in India. Recognizing the vital role of MSMEs in India's economic growth, the government launched this initiative to ensure easier access to benefits, subsidies, and incentives under various government schemes.
What is a Micro, Small, and Medium Enterprise?
Under the MSMED Act, 2006, MSMEs and Small-Scale Industries (SSIs) were established to strengthen the small business sector in India. Initially, the classification differentiated between Manufacturing and Service sectors based on investment limits.
However, on May 13, 2020, the Finance Minister, Mrs. Nirmala Sitharaman, announced a revised MSME definition that:
• Eliminated the distinction between Manufacturing and Service sectors
• Increased investment limits
• Introduced a turnover-based classification
Classification of Enterprises
Micro Enterprise
Small Enterprise
Medium Enterprise
Advantages
Easy Access to Loans
Lower Interest Rates
Government Tender Preference
Tax Benefits & Subsidies
Faster Payment Redressal
Benefits of MSME/Udyam Registration in Hyderabad
Enterprises in Hyderabad that register under MSME/Udyam can enjoy several benefits, including:
- Lower Interest Rates on Bank Loans : Avail collateral-free loans with subsidized interest rates under various government schemes.
- Tax Rebates & Concessions : Enjoy income tax exemptions and other financial reliefs.
- Discounted Patent & Trademark Registration : Reduced costs for intellectual property protection.
- Priority for Government Licenses & Certifications : Faster approvals for required business licenses.
- Access to State & Central Government Schemes : Eligibility for subsidies, incentives, and financial assistance programs.
Documents Required for MSME/Udyam Registration in Hyderabad
To obtain MSME/Udyam Registration online in Hyderabad, the following documents are required
MSME/Udyam Registration Process
Follow these steps to register your enterprise under MSME/Udyam
Visit the Official Portal :
- Go to the official Udyam Registration website: udyamregistration.gov.in.
Choose the Relevant Category :
- New Entrepreneurs (Not registered yet as MSME) → Click "For New Entrepreneurs who are not Registered yet as MSME or those with EM-II."
- Existing Entrepreneurs (Migrating from Udyam Aadhaar) → Click "For those already having registration as UAM through Assisted Filing."
Aadhaar Verification :
- Enter your Aadhaar Number and Name as per Aadhaar Card.
- Validate using OTP sent to your Aadhaar-linked mobile number.
Fill in Business Details :
- Provide required business details in the online form.
- Enter captcha code and click Submit to complete registration.
UAM Migration (If Applicable) :
- Enter your UAM Number and validate with OTP sent to registered email or mobile number.
- After verification, your registration will be updated successfully.
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