Udyam Registration
Government registration system for Indian MSMEs
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Through Small and medium enterprises, India and Government of India
History
The registration system was first launched in September 2015 as Udyog Aadhaar, a 12-digit identification number for MSMEs. By 2018, over 48 lakh MSMEs had registered.
In June 2020, the Government of India revised MSME classification criteria and replaced Udyog Aadhaar with Udyam Registration under the MSMED Act, 2006. The new system integrated Aadhaar and PAN for digital verification, reducing paperwork.
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Classification of MSMEs
Under Udyam, MSMEs are classified as:
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.
Benefits
Registered MSMEs gain access to:
- Collateral-free loans under the CGTMSE scheme.
- Subsidies for ISO certification, electricity bills, and patent filing.
- Protection under the MSMED Act, 2006 against delayed payments.
Impact
As of 2024, Udyam has facilitated ₹15.6 lakh crore in bank credit to MSMEs. A 2023 RBI study noted a 34% increase in MSME lending post-Udyam.
Challenges
- Digital divide: Rural MSMEs face hurdles due to limited internet access.
- Fraudulent registrations: Self-declaration risks misuse.
Related Initiatives
Other MSME portals include:
- MSME Samadhaan: Redressal of delayed payments.
- MSME Sambandh: Monitoring public procurement.
- Champions Portal: Grievance resolution.