apriltax blog
4.9 on Google reviewsWorks with reports from AmazonFlipkartMeesho✓Fixed fees, shown before you start✓Written by Chartered Accountants
IEC and MSME registration

Udyam Registration Online: Step-by-Step Process

✓ 2 official and published sources✓ Written for Indian sellers and small businesses

You register on udyamregistration.gov.in in three parts on one page: verify Aadhaar with an OTP, validate PAN, then fill a form about your business and submit it with a final OTP. There is no fee and nothing to upload. You get a Udyam Registration Number and an e-certificate you can download.

Key points
  • The Aadhaar must belong to the proprietor, managing partner, karta or authorised signatory, and be linked to a working mobile number.
  • PAN is mandatory. A proprietor may use a personal PAN.
  • Everything is self-declared. The portal checks it against income tax and GST data.
  • One enterprise gets one Udyam number, however many activities or units it has.
In this guide
  1. Before you start
  2. The steps
  3. The form fields at a glance
  4. A worked example
  5. Common errors and how to fix them
  6. The mistake people usually make
  7. After you register

Before you start

Are you wondering how long the form is? It is short, but it asks for figures you may not remember. Keep your Aadhaar, PAN, bank account number with IFSC, business address, employee count, and your investment and turnover figures in front of you. The full list is in Udyam registration documents: what to keep ready.

The steps

  1. Open the official portal. Type udyamregistration.gov.in in the address bar yourself. Choose the option for new entrepreneurs who are not yet registered as MSME.
  2. Verify Aadhaar. Enter the Aadhaar number and the name exactly as printed on the Aadhaar card. Tick the consent box and generate the OTP. It goes to the mobile linked with Aadhaar. Enter it and validate.
  3. Validate PAN. Pick the type of organisation, enter the PAN and validate it. The portal also asks whether you filed an income tax return for the previous year and whether you have a GSTIN.
  4. Fill the entrepreneur's details. Name, mobile number, email, social category (General, OBC, SC or ST), gender and whether the owner is specially abled.
  5. Fill the enterprise details. Name of the enterprise, the address of each plant or unit, the official address, the date the business started and any earlier Udyog Aadhaar or EM-II number.
  6. Enter bank details. Account number and IFSC of the business account.
  7. Choose the activity and NIC code. Select manufacturing or services as the major activity. Trading is entered under services. Then pick the National Industrial Classification (NIC) code that matches what you actually do. You can add more than one.
  8. Enter the number of employees. The portal asks for a count by gender.
  9. Enter investment and turnover. Investment means plant, machinery or equipment. Turnover is your yearly sales. If you have filed returns, the portal picks these up from income tax and GST data. A new business declares them itself.
  10. Finish the declaration. Select the District Industries Centre, tick the self-declaration, and submit with the final OTP.
  11. Save the number and certificate. The portal shows your Udyam Registration Number in the format UDYAM-XX-00-0000000. Download the e-certificate when it is issued. It carries a QR code that anyone can scan to verify it.
Get your IEC or Udyam registrationOne form, your documents, and a Tax Expert files it for you.
See registrations

The form fields at a glance

FieldWhat to enterWhere people slip
Name as per AadhaarExact spelling on the Aadhaar cardTyping the business name here
Organisation typeProprietorship, partnership, HUF, LLP, company, society or trustChoosing proprietorship while using the company's PAN
Social category and genderOf the ownerLeaving it at the default
Major activityManufacturing or servicesA reseller choosing manufacturing
NIC codeThe code for your real activityPicking the first search result
EmployeesPeople working in the business nowCounting family who are not involved
InvestmentPlant, machinery or equipment onlyAdding land, building, furniture or stock
TurnoverYearly sales, exports shown separatelyEntering profit instead of sales
BankBusiness account number and IFSCAn old IFSC after a bank merger

A worked example

Farida runs a tailoring unit in Surat as a proprietor. She has sewing and embroidery machines that cost Rs 6,00,000 before GST. Her sales last year were Rs 48,00,000, of which Rs 8,00,000 were exports.

  • Organisation type: proprietorship, with her own PAN.
  • Major activity: manufacturing, with the NIC code for wearing apparel.
  • Investment: Rs 6,00,000. Her shop deposit, furniture and fabric stock stay out.
  • Turnover: Rs 48,00,000 in total. Exports are left out for classification, so the counted figure is Rs 40,00,000.

Both figures are far below Rs 2.5 crore and Rs 10 crore, so she is a micro enterprise.

Common errors and how to fix them

  • OTP does not arrive. Your mobile is not linked with Aadhaar, or the number has changed. Update it at an Aadhaar centre first.
  • Name mismatch. The name typed does not match Aadhaar or PAN records. Type it exactly as on the card, including initials.
  • PAN already used. A Udyam number already exists on that PAN. You cannot take a second one. Find the old number and update it instead.
  • Wrong NIC code. Banks and tender portals read this code. If it says trading and you manufacture, you may be refused a benefit. Correct it through the update option.
  • Session timed out. Keep the figures ready so you are not searching for an IFSC halfway through.

The mistake people usually make

They treat the figures as a formality and type round numbers. The form is a self-declaration, and section 27 of the MSMED Act provides a penalty for misrepresenting or hiding facts. The portal also compares your entries with your income tax and GST returns later. Enter what your books show. A smaller, true number costs you nothing, because the category is decided by the limits and not by how large you look.

After you register

There is no renewal, but keep the record current. Update the portal when your address, bank or activity changes. Put the Udyam number on your invoices and share the certificate with your bank and your buyers. If you still need GST registration, see the GST registration process online.

How AprilTax can help

Registration on the government portal itself is free. If you do not want to fill it yourself, you fill one online form with your business details, Aadhaar and PAN, and an AprilTax Tax Expert files the registration for you. The fee is shared on a call. Begin at Udyam registration with AprilTax.

Frequently asked questions

How do I register for Udyam online?
Go to udyamregistration.gov.in, verify Aadhaar with an OTP, validate PAN, fill the form with your business, bank, activity, employee, investment and turnover details, and submit with a final OTP. There is no fee and no document upload.
Whose Aadhaar is used for Udyam registration?
The proprietor's Aadhaar for a proprietorship, the managing partner's for a partnership, the karta's for a Hindu Undivided Family, and the authorised signatory's for a company, LLP, co-operative society, society or trust.
Is PAN mandatory for Udyam registration?
Yes. Under the notification dated 5 March 2021 a proprietor may use a personal PAN, and PAN is mandatory for every other type of enterprise.
What is a NIC code in the Udyam form?
NIC stands for National Industrial Classification. It is a code that describes your business activity. You pick the code that matches what you actually do, and you can add more than one code in the same registration.
Can I have two Udyam registrations?
No. An enterprise can file only one Udyam registration. Several activities, including manufacturing and services together, and several units can be added inside the same registration.
What does the Udyam Registration Number look like?
It is a permanent number in the format UDYAM-XX-00-0000000, where the letters stand for the state and the next two digits for the district. The e-certificate carries a QR code for verification.
What if my mobile number is not linked with Aadhaar?
The portal sends its OTP only to the Aadhaar-linked mobile, so you cannot start. Update the mobile number at an Aadhaar enrolment centre and then register.
Can I correct details after getting the Udyam certificate?
Yes. The portal has an update option that works with your Udyam number and an OTP. Use it for a change of address, bank, activity or NIC code.

Get your IEC or Udyam registration

One form, your documents, and a Tax Expert files it for you.

See registrations
A
CA Abhijeet

A Chartered Accountant on the AprilTax team who works with online sellers and small businesses every filing season.

Read next

Stuck on a return or registration?

File GSTR-1 free with the tool, or hand it to a Tax Expert at a fixed fee.

← All articles
Talk to AprilTax