What is the procedure to apply for Udyam Registration online?
Here is a step-by-step overview of the process:
- Visit the Official Website: Go to the Udyam Registration portal.
- Choose the Type of Entity: Select whether you are registering as a new enterprise or if you already have Udyog Aadhaar and wish to migrate.
- Enter Aadhaar Details:
- For proprietorships: Aadhaar of the proprietor
- For partnerships: Aadhaar of the managing partner
- For companies/LLPs: Aadhaar of the authorized signatory
- Aadhaar Verification: An OTP will be sent to the registered mobile number linked to the Aadhaar for verification.
- Fill in Business Details: After Aadhaar verification, you will be required to fill out the business name, type of organization, PAN, location, official address, and contact information.
- Enter PAN and GSTIN (if applicable): The portal will automatically pull data linked to the PAN and GST systems.
- Provide Business Activity Details: Specify whether the enterprise is involved in manufacturing or services or both.
- Bank Details and Employment Data:Provide the enterprise’s bank account number along with the corresponding IFSC code for financial identification and transactions. Also, mention the number of employees and other relevant details.
- Investment and Turnover Declaration: Input investment in plant and machinery/equipment and annual turnover. This is validated through Income Tax and GST data.
- Final Submission: After filling out all the required information, click on the “Submit and Get Final OTP” button. Once the final OTP is verified, the registration process is complete.
- Receive Certificate: The Udyam Registration Number is generated, and a digital certificate is issued to the registered email ID.
The process is designed to be simple, quick, and accessible, with no requirement for uploading physical documents.
Is there any fee to be paid during the Udyam application process?
No, there is absolutely no fee required to apply for Udyam Registration. The process is completely free of charge and is meant to encourage small businesses to formalize themselves without any financial burden.
The Ministry of MSME has emphasized that no payment is needed at any stage of the application. This includes:
- No application fee
- No processing charges
- No certificate issuance charges
However, many private consultants and third-party service providers offer to fill the application on behalf of business owners and charge for their service. While this is not illegal, applicants should know that they can complete the entire process on their own, quickly and easily, without spending any money.
What information must be provided while filling the Udyam Registration form?
When filling the Udyam Registration form, the applicant must provide a range of details related to the business, its operations, and the owner/partners/directors. Here is the list of information typically required:
- Aadhar Number of the owner/authorized signatory (mandatory for verification)
- Name of the Entrepreneur (as per Aadhaar)
- Social Category (General/SC/ST/OBC) and Gender of the applicant
- Name of the Enterprise/Business
- Type of Organization (e.g., proprietorship, partnership, LLP, private limited company, etc.)
- PAN Number of the business or individual (mandatory)
- Location of Plant/Unit and Office Address with pin code
- Mobile Number and Email ID
- Date of Commencement of Business
- Bank Account Number and IFSC Code
- Major Activity (Manufacturing or Services)
- National Industry Classification (NIC) Code(s) for business activity
- Number of Employees working in the business
- Details of Investment in plant and machinery or equipment
- Annual Turnover of the enterprise
- GSTIN (if applicable)
The form is self-declaration-based, and there is no need to upload supporting documents. However, the data provided is cross-verified using PAN and GST databases.
Are PAN and GST numbers required for the Udyam application?
Yes, both PAN and GSTIN are required for Udyam Registration, particularly for businesses that are already in operation and fall under mandatory tax compliance requirements.
Here’s how they are used:
- PAN (Permanent Account Number):
PAN is mandatory for all types of businesses (except newly started entities that don’t yet have one). It is used to fetch income and financial details from the Income Tax database, especially to verify investment and turnover data. Without PAN, the application process cannot be completed or validated. - GSTIN (Goods and Services Tax Identification Number):
GSTIN is also compulsory for businesses that are registered under GST. For enterprises engaged in manufacturing or services beyond a certain turnover threshold (currently ₹40 lakh for goods and ₹20 lakh for services), having a GST number is legally required and must be linked during Udyam Registration.
From April 1, 2021, the government made it mandatory to provide PAN and GST for businesses wanting to register or update their information on the Udyam portal. This ensures better integration with government systems and avoids duplication or misreporting.
