The Indian government has begun a new process for MSME registration. On July 1, 2020, the project became online. Udyam registration is the new name for the project, which was formerly known as Udyog Adhar. The nicest aspect about this new procedure is that it’s not only totally online, but it’s also entirely self-declaratory, which means you won’t have to provide any proof documents.


On the basis of the following criteria, an enterprise is categorized as a micro, small, or medium enterprise:

(i) a microbusiness, with a capital investment in plant and machinery or equipment of less than one crore rupees and revenue of less than five crore rupees;

(ii) a small business with a plant and machinery or equipment investment of less than ten crore rupees and revenue of less than fifty crore rupees; and

(iii) a medium-sized business with an investment in plant and machinery or equipment of not more than fifty crore rupees and revenue of not more than 250 crore rupees.

The Finance Ministry expressed confidence in the new MSME registration process, stating that it will set an example in terms of “Ease of Doing Business” not only in India but around the world, as it will not only reduce transaction time but also allow entrepreneurs and businesses to focus entirely on their core business in order to become globally competitive.

All you need is a working Adhaar number. Visit the udyam registration portal to register for this MSME program. We’ll provide step-by-step instructions on how to fill out the form. 

Our Financial minister in her official statement stated that the definition has been changed in favor of MSMEs. She said that there has always been this fear even among successful MSMEs that if they outgrow the size of what has been defined as an MSME they will lose their entitled benefits.

Traditionally, MSMEs like to remain confined within the registered definition instead of growing and graduating to the next level. The revised definitions of MSMEs offer quite flexible in terms of scale so it seems that they will not have to worry anymore about growing their size and can still avail benefits.

The Aadhaar card is required for MSME Udyam registration:

With this new approach, the process of registering a business is made thousand times easier and faster. You must follow this step-by-step procedure to register your business.

If you own a business that meets any of the following criteria, you should register with the Udyam Registration Portal.

You have two choices here:

  • For new entrepreneurs who are not yet MSME-registered.
  • For individuals who have previously registered as an EM-II or UAM.

If you are a new entrepreneur, you must select the first option, and if you previously 

registered as an EM-II or UAM, you must select the second option to re-register.

New entrepreneurs that have not yet registered as an MSME must complete the following steps:

  • When you choose “For new entrepreneurs who have not yet registered as MSME,” you will be prompted to provide your Aadhaar number and name. It is important to remember that having a mobile-linked Aadhaar card number is required. If you haven’t already done so, link your Aadhaar number to your phone.
  • After that, you must verify the information by creating and verifying an OTP (One Time Password).
  • A permanent identifying number will be produced as a result of this action.
  • You will receive an e-Certificate with a clearly stated permanent identification number once you have completed the registration process.
  • Following completion, businesses will be able to use this site to file their income tax returns or GST returns.

Entrepreneurs who already hold an EM-II or UAM registration can register:

  • Unlike the previous procedure, when you click on “For those already registered as EM-II or UAM,” it will just require you to provide your Aadhaar number.
  • After that, you must authenticate your Aadhaar information by generating and confirming an OTP (One Time Password). It may be done in two ways: by email as a filled-in application or via mobile as a filled-in application. You must choose the option where you want to get the OTP, as indicated by the headers.
  • Your Permanent Identification Number will be shown when you confirm your Aadhaar using an OTP.
  • You must finish the registration by providing all other required information. You will receive an MSME Udyam e-Certificate once you have completed the course. In the e-certificate, your permanent identity number will be clearly stated.
  • After receiving the certificate, the business can use this site to file its income tax return or GST return.

It should be noted that a proprietorship firm’s registration should be done using the proprietor’s Aadhaar number. The Aadhaar of the managing partner should be used to register a partnership company. A HUF must have a Karta Aadhaar number, and a company, LLP, co-operative, trust, or organization must have an authorized signatory.

Suggested Read- udyam registration certificate

Calculation of Plant, Machinery, and Equipment Investment:

A detailed estimate of investment in Plant, Machinery, and Equipment, as well as yearly sales, is required to establish whether the business fits within the MSME limitations and under which category. It’s worth noting that “Plant, Machinery, and Equipment” has the same definition as “Income Tax Rules, 1962.” This does not include the cost of the land, the structure, or the furnishings and fittings.

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Adam Smith
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