Recently, we all have witnessed the major changes that are impactful on the economy of the country for making Atmanirbhar Bharat may it be relaxations in compliance, ease of doing business practices, creation of employment opportunities includes digitization of compliance, support to different sectors.

One of the steps includes the renovation of the MSME portal launched 10 years ago. The MSME Registration is now UDYAM Registration effects major changes in application and issuance of the certificate.

In this blog, we shall highlight the new aspects of MSME registration, the fallouts of the previous version, and much more.

What is Enterprise?

In the new system, the enterprise denotes Udyam and thus, the process is known as Udyam Registration.

What is the definition of Micro, Small & Medium Enterprise?

In this, we shall be looking at both definitions to oversee changes that shall be effective from 1 July 2020.

New Definition:

Classification Investment in Plant & Machinery Turnover
Micro-Enterprise >1 crores >5 crores
Small Enterprise >10 crores >50 crores
Medium Enterprise >50 crores >250 crores

Earlier Definition:

Classification Investment in Plant & Machinery
Micro-Enterprise >1 crores
Small Enterprise >10 crores
Medium Enterprise >50 crores

What is the procedure of registration?

Earlier, the process was much easier for any SME to obtain registration or Udyog Adhar Memorandum or UAM just by submitted basic details and documents of proprietor/Firm/Body Corporate, etc. and get instantly the certificate.

Whereas under the new system, the department issues an e-certificate  on the assessment of details submitted on the UDYAM Registration Portal, and the back office will issue the certificate in 2-3 days.

Details and Documents to Submit

Under New Version Under Earlier Version
1.        Email ID, Contact No. of Authorized individual, in case of body corporate, firm, etc.

2.      Aadhar of Individual, in case of a proprietor or authorized signatory, in case of body corporate, firm, etc.

3.      GST No., if obtained

4.      PAN of company or individual, firm, body corporate.


  1. Business Address Proof
  2. Copies of Sale Bill and Purchase Bill
  3. Partnership Deed/ MoA and AoA
  4. Bills of Machinery Purchased.
  5. Email ID, Contact No. of Authorized individual, in case of body corporate, firm, etc.
  6. Aadhar of Individual, in case of individual or authorized signatory, in case of body corporate, firm, etc.

7.      PAN of company or individual, firm, body corporate.


What is New in Udyam Registration?

Talking about new in the procedure and portal of Udyam Registration, such are pointed below as:

  • The new portal allows the filing of the application without submitting any documents as an attachment.
  • The application is a 24-point questionnaire that includes details of the applier, which could be individual, or company or body corporate form of business along with the details of authorized signatory only, which is short and simple to proceed.
  • The application once submitted runs for check of the threshold as notified as revised investments and turnover cumulative based on PAN and GST number details submitted in the application. Therefore, the system of PAN, GST work in accordance with the Udyam Registration Portal.
  • The self-declaration on the details submitted forms the important part of the application for true and correct details as well as holding for liability if in case not.
  • The earlier EM- II or UAM issued stands merged from July 1, 2020, and a single E- certificate is known as Udyam Registration Number to be issue online.
  • There shall be no validity attached to the Udyam certificate issued online.
  • Champions Control Rooms (CRC) and at DICs are the helping hands in filing the application successfully and validation the information.
  • Each person who has obtained EM-II or UAM has to register himself or herself under a new portal. As the validity holds only up to 31 March 2020.
  • This registration impacts negatively when the details submitted are wrong, concealed, or misstated under section 27 of the MSME Act.

Moreover, the benefits shall follow as was in the earlier version of MSME registration, the cost will be zero and now be more transparent thus, promotes ease of doing business

Please note, if the threshold limits exceed whether of investments in Plant and machinery or the turnover the certificate shall be invalid on and from such date.

For more information or inquiries on registration, reach us at