Micro, small and medium-sized enterprises (MSMEs) play a crucial role in the economic growth and development of any country. In India, the government recognizes the significance of MSMEs and has introduced various schemes to support their growth. One such scheme is the Udyam Certificate, previously known as the Udyog Aadhaar Memorandum (UAM).

What is Udyam Certificate?

The Udyam Certificate is another name for the MSME Certificate or Udyog Aadhaar Registration Certificate. It is an official document that enables micro, small, and medium enterprises (MSMEs) to register with the Indian government. This Udyam registration certificate opens doors to numerous benefits and government schemes. It serves as proof that the business is a recognized small-scale entity in India and eligible for associated advantages.

While obtaining an MSME registration is not necessary, it is highly recommended due to the various advantages it offers. Registered MSMEs gain access to improved business finance options, increased eligibility for loans, better credit terms, and favourable taxation policies.

Udyam Certificate

The government has displayed its commitment to supporting MSMEs. It has disbursed a substantial sum of Rs.9.5 trillion in loans to these enterprises during the fiscal year 2020-2021. This figure marks a significant 40% increase from the previous fiscal year.

Additionally, the government has implemented various schemes and policies specifically designed to facilitate the growth and development of MSMEs across India.

What is Udyam Registration Number?

When an enterprise registers for Udyam, it will be assigned a permanent identity number called the “Udyam Registration Number.” It follows the format “UDYAM-UP-00-0123456”, where:

  • The first 5 letters are “UDYAM”
  • The next 2 digits represent the state code
  • The following 2 digits indicate the city code
  • The remaining 7 digits form the unique Udyam Code, similar to an Aadhaar number.

You can use this registration number to print your Udyam certificate online or check the status of your Udyam registration.

Eligibility Criteria for the Udyam Certificate:

The eligibility criteria for the Udyam certificate are as follows:

  • If you are a micro-enterprise, then your investment in equipment must be less than 1 crore rupees. Also, your annual turnover should be less than 5 crore rupees.
  • If you are a small enterprise, then your investment in equipment must be less than 10 crore rupees. Also, your annual turnover should be less than 50 crore rupees.
  • If you are a medium-sized enterprise, then your investment in equipment must be less than 50 crore rupees. Also, your annual turnover should be less than 250 crore rupees.

How to Register/Update the Udyam Certificate?

The Udyam registration process for the MSME certificate is completely free, paperless and self-declaration based. You can fill out the required form on the Udyam registration portal. You only require your Aadhar details to register for the Udyam certificate. All other details linked to PAN and GST are automatically taken from government databases.

If you already have an EM-II or UAM or any such registration, you will need to re-register. You can add different activities to your certificate, such as services or manufacturing, but one enterprise can have only one registration.

Udyam Certificate

Upon successful registration, you will receive a certificate issued by the Ministry of MSME. This is the Udyam certificate, which has lifelong validity. 

How to Print/Download Udyam Certificate?

Follow the below steps for downloading your Udyam certificate:

  • Visit the Udyam Official site.
  • Select the Print/Verify option on the homepage. Select the “Print Udyam Certificate” from the dropdown menu.
Udyam Certificate
  • You will be redirected to the Udyami login page.
Udyam Certificate
  • Enter the details asked (16-digit Udyam registration number and registered mobile number).
  • Select the convenient option for OTP and click on “Verify and generate OTP”.
  • Enter the OTP that you received and click on the “Validate OTP and print” option. Your certificate will appear on the screen.
  • Click on “Print” or “Print with annexure” from the top.
  • You can either print or save it as a PDF for future reference.

How to Check the Application Status of the Udyam Certificate?

To check the application status of the Udyam certificate, you need to follow the below steps:

  • Go to the official website of MoMSME.
  • Enter the Udyog Aadhar number required.
  • Complete the captcha.
  • Click on the ‘verify’ button. You will see your application status on the screen.

Benefits of Udyam Certificate:

  • Business loans with low-interest rates.
  • Capital, tariff and tax subsidies.
  • Easy approvals, licenses and registrations.
  • Subsidy of 15% on automatic machines bought using bank loans.
  • ISO certificate expenditure compensation.
  • Access to government tenders.

Frequently Asked Questions

1. Is Udyam Certificate Mandatory?

Ans. No, the Udyam certificate is not mandatory. However, you can apply for it if you want to enjoy the benefits of loans, business finances, credit eligibility, etc.

2. What are the documents for Udyam Registration Online?

Ans. To complete the Udyam Registration Online, you won’t need to upload any documents or proofs. The process is paperless and self-declaration based. However, it’s recommended to have your Aadhaar card, Pan Card, and Bank account details handy during the form filling.

3. Can an enterprise add multiple activities under the same registration?

Ans. Yes, you can add multiple activities under the same registration, like services or manufacturing.

4. What is the validity of the certificate?

Ans. The validity of the Udyam/ MSME certificate is for a lifetime.

5. Can you register multiple MSMEs?

Ans. Yes, you can register multiple MSMEs as long as each of the MSMEs has a unique name and registration number. There is no limit to the number of registrations.

6. Can a business with multiple locations or branches register for the Udyam certificate?

Ans. Yes, a business with multiple locations under a single MSME registration, but each branch should have separate registration if it has a separate PAN card or Aadhar number. The main branch is considered to be the primary registration and others are treated as additional locations.

7. What to do if I forgot my Udyam registration number?

Ans. If you have forgotten your Udyam registration number, you can retrieve the same using the OTP verification number.