Home ยป A Brief Introduction about Udyam Regitration

A Brief Introduction about Udyam Regitration

by Uneeb Khan

The Udyog Aadhar Certificate is an official document issued by the Government of India to Micro, Small, and Medium Enterprises (MSMEs) upon successful registration under the Udyam Registration portal. It serves as proof of the MSME’s registration and provides the unique 12-digit Udyam Registration Number (URN) assigned to the business during the registration process.

Can a business update or modify its details after completing the Udyam Registration process?

Yes, a business can update or modify its details after completing the Udyam Registration process. The government provides provisions for MSMEs to make necessary changes to their registered information, ensuring that the data remains accurate and up-to-date.

If there are any changes or modifications required in the registered details, the business owner can log in to the Udyam Registration portal using their Udyam Registration Number (URN) and make the necessary updates. The portal allows MSMEs to edit various information fields, including the name of the enterprise, address, contact details, type of organization, and the details of the proprietor/partners/directors.

It is essential for MSMEs to keep their registration information current and accurate. Changes in business operations, contact details, or any other relevant information should be promptly updated in the Udyam Registration portal to ensure that the government and other stakeholders have the most recent and accurate data.

It is advisable to double-check the updated information before saving the changes to avoid any errors or discrepancies in the registration details. Once the modifications are made and saved, the updated information will reflect in the Udyam Certificate, and the MSME can download the revised certificate from the portal.

Are there any specific incentives or schemes available only to Udyam-registered MSMEs?

Yes, there are several specific incentives and schemes available exclusively to Udyam-registered Micro, Small, and Medium Enterprises (MSMEs). These incentives and schemes are introduced by the Indian government to promote the growth and development of the MSME sector and provide support to registered businesses. Some of the key incentives and schemes available to Udyam-registered MSMEs include:

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): 

Under the CGTMSE scheme, Udyam-registered MSMEs can avail collateral-free credit facilities for their business expansion and working capital requirements. The scheme provides a credit guarantee cover to banks and financial institutions, encouraging them to provide loans to MSMEs without the need for collateral.

Prime Minister’s Employment Generation Programme (PMEGP): 

Udyam-registered MSMEs can participate in the PMEGP scheme, which aims to generate self-employment opportunities through the establishment of micro-enterprises. The scheme provides financial assistance for setting up new ventures or expanding existing ones.

Credit Linked Capital Subsidy Scheme (CLCSS): 

Under the CLCSS, Udyam-registered MSMEs can avail a subsidy for technology upgradation. The scheme encourages businesses to adopt modern and efficient technologies, leading to enhanced productivity and competitiveness.

MSME Market Development Assistance (MDA): 

The MDA scheme aims to promote the export of products manufactured by MSMEs. Udyam-registered MSMEs can avail financial assistance for participating in international trade fairs, exhibitions, and buyer-seller meets.

Technology and Quality Upgradation Support (TEQUP): 

The TEQUP scheme provides reimbursement of expenses incurred by Udyam-registered MSMEs on the purchase of technology, acquiring patents, and quality certification.

Interest Subsidy Scheme: 

Udyam-registered MSMEs engaged in manufacturing or production can avail an interest subsidy on loans taken for the implementation of technology upgradation projects.

Women Entrepreneurship: 

The government offers specific incentives and support to Udyam-registered MSMEs that are women-owned or led. These incentives aim to promote women entrepreneurship and gender equality in the business ecosystem.

Reduced Fees and Charges: 

Udyam-registered MSMEs may be eligible for reduced fees and charges for various registrations and compliance requirements, making it cost-effective for businesses to operate.

Does Udyam Registration provide any preference or priority in government tenders and procurement?

Yes, Udyam Registration provides preference and priority to Micro, Small, and Medium Enterprises (MSMEs) in government tenders and procurement processes. The government has introduced various policies and guidelines to promote the growth of MSMEs and support their participation in government procurement.

Here are some ways in which Udyam-registered MSMEs receive preference in government tenders and procurement:

Reservation of Contracts: In many government tenders, a certain percentage of the total value of contracts is reserved exclusively for MSMEs. This means that a portion of the procurement is set aside for MSMEs to encourage their participation and facilitate their growth.

Exemption from Earnest Money Deposit (EMD): Udyam-registered MSMEs may be exempted from submitting Earnest Money Deposit (EMD) while bidding for government tenders. EMD is a security deposit required to be submitted along with the tender application, and its exemption reduces the financial burden on MSMEs.

Tender Notifications: Government departments and agencies often release exclusive tender notifications for MSMEs. These tenders are specifically meant for Udyam-registered businesses, providing them with opportunities tailored to their capabilities and expertise.

Sub-Contracting Opportunities: Large government projects often involve sub-contracting work, and Udyam-registered MSMEs are given the opportunity to participate as subcontractors. This allows them to be part of significant projects and collaborate with larger companies.

Relaxation in Eligibility Criteria: Udyam-registered MSMEs may enjoy relaxation in certain eligibility criteria while bidding for government tenders. This ensures that smaller businesses have a fair chance to compete with larger enterprises.

Purchase Preference Policy: Some states in India have implemented a purchase preference policy that gives preference to products and services offered by MSMEs. This policy encourages government agencies to procure from Udyam-registered MSMEs wherever possible.

Timely Payments: Government organizations are mandated to make timely payments to Udyam-registered MSMEs for goods and services supplied. This provision reduces the financial strain on MSMEs and ensures better cash flow.

The preference and priority provided to Udyam-registered MSMEs in government tenders and procurement aim to promote their growth, encourage entrepreneurship, and foster a more inclusive business environment. These measures also play a crucial role in supporting the MSME sector and its contribution to the overall economic development of the country.

Note : You can apply here for Udyam re-registration here


Udyam Registration is a significant initiative by the Indian government to support and empower Micro, Small, and Medium Enterprises (MSMEs) in the country. It has streamlined the registration process, making it easier and more accessible for businesses to register and avail various benefits. Through Udyam Registration, MSMEs gain official recognition, which enhances their credibility, trustworthiness, and market presence.

The advantages of Udyam Registration are manifold. MSMEs registered under Udyam can access government schemes, incentives, and subsidies designed to provide financial support and encourage their growth. They receive priority in government procurement, with reserved contracts and exemptions from certain requirements, providing them with valuable opportunities to secure government orders.

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