Udyam Registration in Mumbai

Udyam Registration in Mumbai: A Comprehensive Guide

If you’re a business owner in Mumbai, you might be familiar with Udyam registration. It’s a government initiative that helps small businesses obtain various benefits and incentives.

Starting a business in Mumbai can be difficult because of the many rules and regulations there. Registration under the Udyam Registration Scheme is an important part of starting a business. We will discuss what Udyam Registration is, its benefits, and how to register your business under it in Mumbai.

What is Udyam Registration?

The Ministry of Micro, Small, and Medium Enterprises (MSME) started Udyam Registration to give recognition to micro, small, and medium businesses. It replaced the earlier Udyog Aadhaar Memorandum (UAM) system in July 2020. The registration process is entirely online and free of charge.

Why is Udyam Registration important for your business?

Businesses need to sign up for Udyam because it gives them access to government programs and benefits for MSMEs. Some of the benefits include:

Benefits of Udyam Registration

There are several benefits of Udyam registration that small businesses can avail of. Here are some of the main benefits:

1. Access to Government Schemes
Registering your business with Udyam makes you eligible for several government programs and incentives. These schemes include credit guarantee schemes, marketing assistance, and technology upgrades.

2. Subsidies and Tax Benefits
Registered businesses can avail themselves of various subsidies and tax benefits. These benefits include lower interest rates on loans, exemption from certain taxes, and subsidies on various expenses.

3. Easier Bank Loans
Udyam registration makes it easier for small businesses to obtain bank loans. Banks prefer to lend to registered businesses as they are considered more trustworthy and reliable.

4. Improved Credibility
Udyam registration improves the credibility of your business. It demonstrates that your company has attained certain standards and is government-recognized.

Eligibility Criteria for Udyam Registration

(i) Type of Business
Udyam registration is for micro, small, and medium enterprises. These businesses must fall under the following sectors: manufacturing, services, or trading.

(ii) Classification of Enterprises
The MSME Act of 2006 says that businesses are put into different groups based on how much they have invested in plants and machinery. The following table outlines the classification of enterprises:

Type of Enterprise

Investment in Plant and Machinery or Equipment

Micro Enterprise 

Up to Rs. 1 crore

Small Enterprise 

Up to Rs. 10 crore

Medium Enterprise 

Up to Rs. 50 crore

(iii) Criteria for Micro, Small, and Medium Enterprises
For a business to be eligible for Udyam Registration, it must meet the following criteria:

  • Micro Enterprise: Investment in plant and machinery or equipment must be up to Rs. 1 crore, and turnover should not exceed Rs. 5 crore.
  • Small Enterprise: Investment in plant and machinery or equipment must be up to Rs. 10 crores, and turnover should not exceed Rs. 50 crore.
  • Medium Enterprise: The plant and machinery or equipment investment must be up to Rs. 50 crore and turnover should not exceed Rs. 250 crores.

Documents Required for Udyam Registration

To register your business under Udyam, you need to submit certain documents. The documents required are listed below:

The Udyam Registration Process in Mumbai

Step 1: Visit the Udyam Registration Portal
The first step is to visit the official Udyam registration portal (udyamregistration.gov.in). Click the ‘New Entrepreneur Registration’ button to start the registration process.

Step 2: Enter your Aadhaar number
Enter your 12-digit Aadhaar number here. The registration process is linked to your Aadhaar card details.

Step 3: Enter the OTP
Enter the OTP where it says to on the registration portal, and then click “Submit.”

Step 4: Validate the details
Once you have entered all the required details, validate them by clicking the ‘Validate and Generate OTP’ button. An OTP (one-time password) will be sent to the mobile number linked to your Aadhaar card.

Step 3: Enter your business details
Enter your business details, including name, type of organization, PAN number, and address. You will also need to provide information about the number of employees and investment in plant and machinery.

Step 6: Complete the Udyam registration form
After entering the OTP, you will be redirected to the Udyam registration form. Fill in all the required details, including your personal, business, and bank account details. Upon completion, click the “Submit” button.

Step 7: Verify Udyog Aadhaar
Once the submission is done, applicant need to visit to verify udyog aadhaar page and fill the required details and click verify.
Step 8: Download the Udyam registration certificate
You can download the Udyam registration certificate after successful payment. The certificate will contain your unique Udyam registration number (URN) and other business details

Common Mistakes to Avoid During Udyam Registration

While applying for Udyam registration, there are a few common mistakes that you should avoid. These mistakes include:
1. Providing Incorrect Information Make sure to provide accurate and up-to-date information while registering your business. Providing incorrect information can result in the rejection or cancellation of your registration.

2. Missing Documents Ensure that you have all the necessary documents before starting the registration process. Missing documents can delay the registration process or lead to rejection.

3. Not Verifying Information Double-check all the information provided before applying. Verify that all the details are correct and match the supporting documents.

Udyam Registration FAQs

A: No, Udyam registration is not mandatory. However, it’s recommended for small businesses to take advantage of the various benefits and incentives.
A: No, a business owner can only apply for Udyam registration once. Multiple registrations can lead to cancellation or rejection of the registration.
A: A business owner can update the registered details by visiting the Udyam registration portal and clicking the “Update Entrepreneur Registration” tab.
A: No, Udyam registration is entirely free of charge.
The only way to sign up for Udyam is online, which only takes a few minutes. Once the application is submitted, it takes around one working day to generate the Udyam Registration Number.

Alonika is the best Udyam Registration consultant in Mumbai

Alonika is the expert in Mumbai to help you sign up for Udyam. We’re one of the most well-known business registration consultants in the state. We allow MSMEs to use government programs and help them accomplish their business needs.

Our consultants take care of everything, from filling out the Udyam registration form to ensuring the process is done. We also offer an online registration option for the Udyam registration process in Mumbai. So, if you want to choose a company to register your business in Mumbai, Alonika is the ideal choice.