MSME Udyam Registration Renewal – A Complete Guide

Understanding MSME or Udyam registration and certificate renewal is essential for small businesses in India to access government benefits and support. This guide outlines the registration process, renewal steps, and key compliance requirements to help businesses stay competitive and eligible for financial opportunities.  

Udyam Registration Certificate

What Is Udyam Registration Certificate?

The Udyam Registration Certificate is crucial for Micro, Small, and Medium Enterprises (MSMEs) in India. Issued by the Ministry of MSME, this e-certificate serves as official recognition of an enterprise’s MSME status. Upon completion of the MSME registration process, entrepreneurs receive this digital certificate via email.

One of the notable features of the Udyam Registration Certificate is its embedded QR code. It provides quick access to the enterprise’s web page on the Udyam portal. This innovative feature enhances transparency and facilitates ease of doing business for MSMEs across the country.

Are the Udyam Certificate and MSME Certificate the Same?

The Udyam Certificate and MSME Certificate refer to the same type of registration for micro, small, and medium enterprises (MSMEs) in India. However, the “Udyam” is the updated and more streamlined process introduced in July 2020. The Udyam Registration has replaced the older MSME registration process. It is now mandatory for businesses to be officially recognized as MSMEs and to avail themselves of government benefits. 

Essentially, while both certificates serve the same purpose, the Udyam Certificate is the current and standardized version under the revised registration system. 

Features of Udyam Registration Certificate

• Permanent Registration Number: Each MSME is assigned a unique, permanent registration number of their Udyam certificate. This number serves as a long-term identifier for the enterprise. It simplifies the future interactions with government bodies and financial institutions. 

• E-Certificate Issuance: The registration process is entirely digital, with the certificate being emailed to the entrepreneur upon successful registration. This paperless approach aligns with India’s digital initiatives and reduces bureaucratic hurdles for business owners. 

• Lifetime Validity: Unlike many other business-related certifications, the Udyam Registration Certificate remains valid throughout the existence of the enterprise. This eliminates the need for periodic renewals, saving time and resources for MSMEs. 

• Official MSME Recognition: Possessing a Udyam Registration Certificate officially certifies that an enterprise falls under the MSME category. It opens doors to numerous benefits and support mechanisms provided by the government.

• Essential for Financial Benefits: The certificate is a prerequisite for MSMEs to access various financial benefits. This includes preferential loan terms from banks and eligibility for government schemes designed to support small businesses.

• Comprehensive Coverage: A single Udyam Registration Certificate covers all activities of an enterprise. This means that businesses engaged in multiple sectors or activities do not need to apply for separate registrations. It streamlines their compliance processes.  

Eligibility for Udyam Registration Certificate

You need to fall under the certain criteria to get the Udyam Registration Certificate:

Type of Enterprise	Investment in Plant and Machinery or Equipment Should Not Exceed	Annual Turnover Should Not Exceed
Micro Enterprise	₹1 crore	₹5 crore
Small Enterprise	₹10 crore	₹50 crore
Medium Enterprise	₹50 crore	₹250 crore

Along with these, you can get the Udyam Registration Certificate if you fall under the manufacturing and service sector. Additionally, your enterprise must not have been previously registered under the MSME Development Act, 2006.

Documents Required Udyam Registration Certificate

You need to have the following documents to register for the Udyam Certificate:

• Aadhaar Number: Mandatory for the proprietor (individual), managing partner, or Karta of a Hindu Undivided Family (HUF).

• PAN and GSTIN: Required for enterprises, as per government notification, especially for medium enterprises.

• Business Address Proof: Details such as the address of the business, including the state, district, pin code, and full address. 

• Bank Account Details: Active bank account number and IFSC code.

• NIC Code: National Industrial Classification (NIC) Code for activities undertaken by the business. 

• Number of Employees and Investment Amount: Details about the number of employees and the amount invested in plant and machinery or equipment. 

How to Apply for Udyam Registration Certificate?

Follow these steps in order to apply for a Udyam Registration Certificate:

1. Access the Portal: Begin by visiting the official Udyam registration portal, which serves as the gateway for MSME registration in India.

2. New Registration: On the homepage, locate and click on the option for new entrepreneurs who have not registered as MSMEs yet or those with EM-II status. 

3. Aadhaar Verification: Enter your Aadhaar number and name as an entrepreneur. The system will generate an OTP sent to your Aadhaar-linked mobile number for verification purposes

4. Company Details: Provide information about your company type and PAN (Permanent Account Number). The system will validate this information to ensure accuracy.

5. Complete Registration Form: Fill out the comprehensive Udyam Registration form with all required details about your enterprise. Once completed, submit the form and validate with a final OTP.

6. Receive Certificate: Upon successful submission and verification, the Udyam Registration Certificate will be sent to your registered email address. This completes the registration process.

Udyam Registration Processing Time and Fees

Time: The efficiency of the Udyam Registration process is evident in its quick turnaround time. Typically, applicants can expect their Udyam Registration Certificate within two to four business days. This swift processing allows entrepreneurs to quickly move forward with their business plans and access MSME features.

Fees: In line with the government’s initiative to promote ease of doing business, there is no cost associated with MSME registration on the Udyam portal. This free-of-cost registration removes financial barriers for small businesses seeking official MSME status.

Benefits of Having a Udyam Registration Certificate

Some of the essential benefits of having this certificate are:

• Affordable Financing: MSME registration in India opens doors to preferential loan terms, with interest rates typically 1-1.5% lower than regular business loans. This significantly reduces financing costs. 

• Cost Reductions: Various rebates and concessions are available to registered MSMEs. It reduces expenses related to patent filing and industry setup. 

• Extended Tax Benefits: Registered MSMEs can carry forward credit for minimum alternate tax (MAT) for up to 15 years. It provides greater financial flexibility compared to the standard 10-year limit. 

• Government Scheme Eligibility: Registration unlocks access to numerous government initiatives such as the Credit Guarantee Scheme and Credit Linked Capital Subsidy Scheme, designed to support MSME growth. 

• Enhanced Market Access: The Udyam Registration portal’s integration with government e-marketplaces and state-level portals facilitates easier access to tenders and border market opportunities.

• Debt Relief Options: Registered MSMEs benefit from One-Time Settlement options for unpaid amounts, offering a pathway to financial recovery. 

• Priority Sector Lending: Banks are mandated to prioritize lending to registered MSMEs, improving access to capital. 

• Tender Participation Advantages: MSMEs enjoy benefits like security deposit waivers when participating in e-tenders. This reduces barriers to government contract participation. 

• Operational Flexibility: A single registration covers multiple business activities, simplifying compliance for diversified MSMEs.

• Additional Support: Registered MSMEs can access benefits like barcode registration subsidies, direct tax exemptions, ISO certification reimbursements, and concessions on electricity bills. 

• International Exposure: Special consideration is given to registered MSMEs for participation in international trade fairs. It opens doors to global markets.

Udyam Registration or MSME Certificate Verification

To verify the authenticity of the Udyam Registration Number, follow these steps:

Step 1: Visit the Udyam Registration portal.

Step 2: Choose the “Print/Verify” option, then select “Verify Udyam Registration Number.:”

Step 3: Enter the Udyam Registration or Reference Number along with the captcha code. 

Step 4: Click “Verify” to confirm the registration’s validity. 

Print Udyam Registration Certificate

Entrepreneurs can easily obtain a physical copy of their Udyam Registration Certificate by following these steps:

Step 1: Navigate to the official Udyam Registration portal.

Step 2: Select the “Print/Verify” option, then choose “Print Udyam Certificate.”

Step 3: Input your Udyam/MSME Registration Number and registered mobile number. Then select your preferred OTP method. 

Step 4: Enter the OTP received to validate and log in. 

Step 5: Once logged in, you can print your Udyam Registration Certificate for physical records. 

Udyam Registration Certificate Download

For a digital copy of your Udyam Registration Certificate, you need to:

Step 1: Access the Udyam Registration portal.

Step 2: Select “Print/Verify,” the “Print Udyam Certificate.”

Step 3: Enter your Udyam Registration Number and mobile number, and choose an OTP option. 

Step 4: Validate the OTP to log in.

Step 5: Download the digital certificate of your records. 

Udyam Registration Certificate Status

To learn about the status of your Udyam Certificate, you should:

Step 1: Visit the official Udyam Registration portal.

Step 2: On the homepage, click on the “Track Application Status” option.

Step 3: You will be redirected to a new page. Here, enter the following information details:

• Application Number (received during registration)
• Mobile Number (which you used to register during application)

Step 4: Enter the captcha code displayed on the screen.

Step 5: Click on the “Track Status” button.

The system will display the current status of your Udyam Registration application. Possible statuses include “In Process,” “Approved.” or “Rejected” along with any additional remarks. 

Forgot Udyam Registration Number

If you have misplaced your Udyam Registration Number, follow the steps:

Step 1: Visit the Udyam Registration portal.

Step 2: Choose “Print/Verify,” then select “Forgot Udyam /UAM No.”

Step 3: Select Udyam registration, choose your OTP method, and enter your contact details. 

Step 4: Validate the OTP to log in. 

Step 5: Your Udyam Registration Number will be sent to your registered contact method. 

How can I Convert MSME to Udyam?

To convert your existing MSME registration to Udyam, follow these steps:

Step 1: Visit the official Udyam Registration portal.

Step 2: Click on “For existing enterprises registered as UAM or having EM-ii.”

Step 3: Enter your previous registration details (UAM or EM-II number).

Step 4: Provide your Aadhaar number and other required information.

Step 5: Complete the registration process by filling in all the necessary details.

Step 6: Submit the application and receive your new Udyam Registration Certificate.

This process ensures your business transitions to the new Udyam system while maintaining its MSME status. 

Is Udyam Registration Mandatory for MSME?

Udyam Registration is now mandatory for all MSMEs in India. As of July 1st, 2020, the Udyam Registration has replaced the earlier forms of MSME registration. All existing MSMEs must re-register under the Udyam system, and any new business wishing to be classified as MSME must obtain the online Udyam registration. This registration is essential for accessing various government schemes, benefits, and support programs designed for MSMEs. 

Why are Banks Asking for Udyam Registration?

Banks ask for Udyam Registration for several reasons:

• Official Proof: It serves as official proof of MSME status, which is required for various banking services and products tailored for MSMEs. 

• Priority Sector Lending: Banks are mandated to allocate a certain portion of their lending to priority sectors, including MSMEs. Udyam Registration helps banks identify eligible businesses. 

• Risk Assessment: The information provided in Udyam Registration helps banks assess the business’ size, sector, and other details crucial for credit evaluation. 

• Government Schemes: Many government-backed loan schemes and guarantees for MSMEs require Udyam registration. 

• Regulatory Compliance: Banks need to ensure they are providing MSME-specific services only to officially recognized MSMEs. 

Can We Have Two MSME Certificates?

A business cannot have two valid MSME certificates simultaneously. The Udyam Registration system is designed to provide a single, unique registration number for each MSME. This ensures there is no duplication and maintains the integrity of the MSME database. If a business has multiple activities or branches, all of these should be covered under a single Udyam registration. If you have an old MSME certificate (like UAM or EM-II) and a new Udyam certificate, only the Udyam Certificate is considered valid.

MSME Renewal in India – Overview

Understanding MSME Renewal

In India, the process of MSME Registration Renewal involves updating the previous year’s Income Tax and GST Returns status on the MSME Certificate. This crucial step allows for the reclassification of MSMEs based on their most recent data regarding net investment, net turnover, and exports. 

The Udyam portal, which is integrated with Income Tax and GST databases, automatically populates this information. However, it is important to note that the filing status must be self-declared by the application. 

The concept of MSME Certificate Renewal was introduced through a notification by the Ministry of Micro, Small, and Medium Enterprises on June 26, 2020. This notification mandates that all registered MSMEs must annually update their ITR, GSTR, and other relevant details on their MSME certificates. This update is to be completed on a self-declaration basis by March 31st of every year. Failing to comply with this requirement within the specified timeframe may result in the enterprise losing its MSME status. This could impact various benefits and schemes available to them. 

Key Features of MSME Renewal

• Online Process: The renewal procedure is entirely digital, offering convenience and accessibility to MSMEs across India. This online approach reduces paperwork and allows business owners to update their information from anywhere, at any time. 

• Annual Requirement: The renewal process is an annual obligation. It ensures that MSME classifications remain current and reflect the most recent financial status of the enterprise. This regularity helps maintain the accuracy of government records and statistics. 

• No Government Fees: It is a move to support small businesses; the government has made the renewal process free of charge. This eliminates financial barriers and encourages compliance among all registered MSMEs. 

• Minimal Documentation: The streamlined process requires minimal paperwork. It reduces the administrative burden on small business owners. This efficiency allows entrepreneurs to focus more on their core business activities. 

• Self-Declared Information: The renewal process relies on self-declaration, empowering business owners to take responsibility for the accuracy of their information. This approach promotes transparency and trust between MSMEs and regulatory bodies. 

MSME Renewal Eligibility

The MSME renewal process is mandatory for all registered MSMEs in India. As stipulated in the June 26, 2020 notification, these enterprises must update their previous year’s ITR and GSTR annually. This requirement ensures that the classification of MSMEs remains current and accurately reflects their financial status. 

The renewal process serves a dual purpose. Firstly, it allows for the reclassification of MSMEs based on their latest financial data. It ensures they are categorized correctly for the current fiscal year. Secondly, it helps maintain an up-to-date database of MSME information. This is crucial for policy-making and implementation of targeted support schemes. 

The Udyam portal simplifies this process by automatically populating relevant details from integrated Income Tax and GST databases. This automation not only reduces the chances of errors but also saves time for all business owners. It allows them to focus on their core operations while staying compliant with regulatory requirements. 

Checklists and Documents

To ensure a smooth MSME renewal process, it is essential to have the following document ready. Here is a comprehensive checklist to help you prepare:

The minimum requirements are as follows:

• MSME Registration Certificate
• PAN (Permanent Account Number) of your business
• GSTIN (Goods and Services Tax Identification Number)
• ITR filed in the previous year

The other requirements that you would need are:

• Udyam Registration number to access your MSME profile on the Udyam portal
• Registered mobile number for OTP verification

Having these documents and information readily available will streamline the renewal process. It is advisable to gather all necessary paperwork well in advance of the renewal deadline to avoid any last-minute complications. 

What Details Can be Updated on the MSME Portal?

The MSME portal offers a comprehensive range of updatable information. It allows businesses to keep their profile current and accurate. These details can be modified at any time during the year. It provides flexibility to MSMEs as their circumstances change. The information that can be updated includes:

• Type of Organization: This allows businesses to reflect any changes in their organizational structure. It can shift from a sole proprietorship to a partnership or private limited company. 

• GSTR Filing Status for Previous Year: Updating this information demonstrates compliance with GST regulations and provides a clear picture of the business’s tax status.

• Registered Mobile Number and Email Address: Keeping contact information current ensures that businesses receive important communications and updates from relevant authorities. 

• Social Category of Ownership: This field allows for updates in the social category of the business owner. This can be relevant for certain government schemes and benefits.

• Name of the Enterprise: While pre-filled, this field is editable to reflect any legal name changes the business may undergo. 

• Plant/Unit Details: Businesses can update the names and addresses of their operational units, ensuring accurate location information. 

• Incorporation Date and Business Commencement Details: These fields allow for the correction of any errors in the initial registration or updates to reflect changes in business operations. 

• Bank Details: Keeping financial information current is crucial for accessing government schemes or receiving payments. 

• Industrial Activity Details: This section can be updated to reflect any diversification or changes like business activities. 

• Employment Details: Updates to workforce information can impact MSME classification and eligibility for certain benefits. 

What Details Cannot be Updated on the MSME Portal?

While the MSME portal allows for extensive updates, certain core details remain fixed after the initial registration. These unchangeable elements include:

• PAN of the Organization: This unique identifier remains constant throughout the life of the business, barring exceptional circumstances. 

• Registered Office of the Organization (Only District and State): Changes beyond the district and state limits necessitate a new registration. This is because it may impact the business’s classification and eligibility for local schemes.

• Aadhar of the Applicant/Entrepreneur: As a personal identifier, this remains fixed to maintain the link between the individual and the registered MSME. 

• Name of the Applicant/Entrepreneur: To preserve the integrity of registration, the name associated with it cannot be altered. 

It is worth noting that while most details can be updated year-round, the status of the ITR filed for the previous year can only be updated when enabled by the MSME Ministry. This is typically at the end of the financial year. Additionally, details of investment, turnover, and exports are automatically populated from ITR and GSTR information, requiring no manual updates from the business owner.

How to Renew MSME Registration Certificate?

The MSME Certificate Renewal process is user-friendly and can be easily done online through the Udyam portal. Here is a detailed step-by-step guide on how to navigate this process:

Step 1: Visit the Online Udyam Portal

Begin by accessing the official MSME or Udyam portal. Once on the main page, locate and select the “Update Details” option from the main menu. A dropdown menu will appear. From here, choose the “Update/Cancel Registration” option to proceed with the renewal process. 

Step 2: Submit Udyam Registration Number and Validate Using OTP

You will be redirected to a new window where you need to enter the Udyam Registration Number and the registered mobile number associated with your account. An OTP (one-time password) will be sent to this number for verification purposes. Alternatively, you can choose to receive OTP on your registered email address. After successfully entering the OTP, your current MSME Certificate will be displayed on the screen. 

Step 3: Edit and Update Details

On the displayed certificate, you will find an Edit button. Click on this to begin updating this information. You will notice that some fields are disabled while others are active for editing. Focus on updating the active fields with the most recent information. Remember, updating the status of the ITR filed for the previous year is mandatory at the end of each financial year. 

Step 4: Submit the Updated Information

After filling out the ITR details and other information that requires updating, you can submit the form. Based on your PAN and ITR details, the system will automatically revise the turnover and investment limits in your Certificate. All other details you have requested to update will also be reflected in the renewed MSME Certificate.

Step 5: Download the Updated MSME Registration Certificate

To obtain your renewed certificate, click on the “Print Certificate” option at the top of the page. Alternatively, you can use the “Print/Verify” option from the main menu. By entering your Udyam Registration Number, you can download an updated copy of your MSME Certificate at any time. 

MSME Renewal Benefits

Understanding the benefits of MSME renewal can provide valuable insights into why this process is crucial for registered MSMEs. Here are some of the key advantages of this process in India:

• Accurate Classification: MSME Certificate Renewal ensures that your enterprise is correctly categorized based on the most current financial information. This accurate classification is crucial for accessing appropriate government schemes and benefits tailored to your business size and sector. 

• Eligible for Government Schemes: By renewing your MSME Certificate, you maintain your eligibility for various government initiatives and subsidies specifically designed for MSMEs. These can include preferential credit access, technology upgrade support, and marketing assistance programs. 

• Improved Credibility: A renewed MSME Registration Certificate enhances your business’s credibility in the eyes of lenders, customers, and potential business partners. It demonstrates your commitment to regulatory compliance and transparency. It potentially creates the scope for new opportunities and partnerships.

• Competitive Advantage: The renewal process allows you to showcase your business’s growth and performance over the years through accurate, updated data. This can be particularly advantageous when competing for contacts or seeking investments. 

• Seamless Compliance: Staying current with ITR and GSTR details through the renewal process facilitates compliance with tax and regulatory requirements. This proactive approach reduces the risk of penalties and ensures smooth business operations.

• Timely Payment: MSME Renewal online enables timely payment to registered MSMEs from buyers after the sale of goods and services. This is crucial for maintaining healthy cash flows. It is especially so for smaller businesses that may be more sensitive to payment delays. 

How We Assist in MSME / Udyam Registration Renewal?

At Lendingkart, we simplify the renewal process for your MSME/Udyam Reg Certificate, helping businesses maintain their MSME status with ease. Our fully digital platform allows for quick renewals, complemented by 24/7 customer support to resolve any queries. We provide free expert consultations to guide you through the renewal process and offer our services nationwide. It ensures consistent support for businesses across India. With competitive pricing, we make compliance accessible and affordable for all. 

Our end-to-end service includes verifying eligibility, assisting with documentation, and managing the online application submission to deliver a seamless renewal experience. 

Conclusion

Renewing your MSME status is essential for maintaining access to government benefits and schemes that support small and medium enterprises in India. Staying proactive with annual renewals helps keep your business’s information current, positioning it for success in a dynamic economy. The renewal process also offers a chance to reassess growth, update your classification, and reinforce compliance. Whether managing it independently or with professional help, understanding MSME renewal requirements ensures your business leverages its status for continued growth and support