Udyam Registration
| Agency overview | |
|---|---|
| Formed | July 2020 |
| Preceding agency |
|
| Jurisdiction | Government of India |
| Headquarters | New Delhi, India |
| Minister responsible | |
| Parent agency | Ministry of Micro, Small and Medium Enterprises |
| Website | udyamregistration |
Udyam Registration is a government registration system for Micro, Small and Medium Enterprises (MSMEs) in India, introduced by the Ministry of Micro, Small and Medium Enterprises in July 2020. It replaced the earlier Udyog Aadhaar system to streamline compliance and provide MSMEs access to credit, subsidies, and government schemes. As of July 2024, over 4.77 crore MSMEs have registered under the platform.[1]
History
The registration system was first launched in September 2015 as Udyog Aadhaar, a 12-digit identification number for MSMEs.[2] By 2018, over 48 lakh MSMEs had registered.[3]
In June 2020, the Government of India revised MSME classification criteria and replaced Udyog Aadhaar with Udyam Registration under the MSMED Act, 2006.[4] The new system integrated Aadhaar and PAN for digital verification, reducing paperwork.[5]
Classification of MSMEs
Under Udyam, MSMEs are classified as:[6]
| Category | Investment | Annual Turnover |
|---|---|---|
| Micro | ≤ ₹1 crore | ≤ ₹5 crore |
| Small | ≤ ₹10 crore | ≤ ₹50 crore |
| Medium | ≤ ₹50 crore | ≤ ₹250 crore |
Registration Process
Registration is online and requires:
1. Aadhaar of the proprietor/partner/director.
2. PAN of the business.
3. Basic business details (name, address, bank account).
After submission, a certificate with a Udyam Registration Number (URN) and QR code is issued.[7]
Benefits
Registered MSMEs gain access to:
- Collateral-free loans under the CGTMSE scheme.[8]
- Subsidies for ISO certification, electricity bills, and patent filing.[9]
- Protection under the MSMED Act, 2006 against delayed payments.[10]
Impact
As of 2024, Udyam has facilitated ₹15.6 lakh crore in bank credit to MSMEs.[11] A 2023 RBI study noted a 34% increase in MSME lending post-Udyam.[11]
Challenges
- Digital divide: Rural MSMEs face hurdles due to limited internet access.[12]
- Fraudulent registrations: Self-declaration risks misuse.[13]
Related Initiatives
Other MSME portals include:
- MSME Samadhaan: Redressal of delayed payments.
- MSME Sambandh: Monitoring public procurement.
- Champions Portal: Grievance resolution.
See also
References
- ^ "Udyam Registrations Cross 4.77 Crore, 2.49 Crore Added in FY24". The Times of India. 5 August 2024.
- ^ "Udyog Aadhaar Memorandum (UAM)". Ministry of MSME. Retrieved 20 May 2024.
- ^ "48 lakh MSMEs registered on Udyog Aadhaar portal". The Hindu Business Line. 18 July 2018.
- ^ "New MSME Definition: What is Udyam Registration?". The Financial Express. 5 July 2020.
- ^ Annual Report 2020–21 (PDF) (Report). Ministry of MSME. p. 23. Retrieved 20 May 2024.
- ^ "Revised MSME Classification". Ministry of MSME. Retrieved 20 May 2024.
- ^ Singh, Surbhi Gloria (20 March 2024). "How to register MSME on Udyam portal?". Business Standard.
- ^ "How MSMEs Can Avail Collateral-Free Loans". Mint. 12 April 2023.
- ^ "MSME Benefits". Udyam Registration Portal. Retrieved 20 May 2024.
- ^ "MSME Samadhaan: Over 1.5 Lakh Cases Disposed". The Economic Times. 10 March 2024.
- ^ a b Report on Trend and Progress of Banking in India 2022–23 (Report). Reserve Bank of India. p. 87. Retrieved 20 May 2024.
- ^ India’s Digital Divide (Report). Internet and Mobile Association of India. 2023. p. 12.
- ^ "Fake Udyam Certificates on the Rise". The Hindu. 5 September 2023.