Updating Information on Udyam Registration online

The Udyam Certificate is a crucial document for Micro, Small, and Medium Enterprises (MSMEs) in India, providing various benefits, including government subsidies, loan facilities, and business recognition. However, businesses may need to update their Udyam Certificate due to changes in operations, business structure, or compliance requirements. Here’s a detailed look at what can be modified, what cannot be changed, and how these updates impact MSME registration.

Information That Can Be Modified

The Ministry of Micro, Small, and Medium Enterprises (MSME) allows certain modifications in the Udyam Certificate to keep business details accurate and up to date. The following information can be modified:

1. Business Name

• If there is a legal change in the business name due to rebranding, mergers, or restructuring, it can be updated.
• Supporting documents such as GST registration, PAN records, or a legal affidavit may be required.

2. Business Address

• If the business shifts its location, the address can be updated in the Udyam Certificate.
• Proof of new address, such as utility bills, rent agreements, or updated GST registration, is necessary.

3. Mobile Number and Email ID

• Businesses can update their registered mobile number and email ID for communication purposes.
• OTP verification is required for authentication.

4. Bank Account Details

• Changes in business bank account details, such as account number and IFSC code, can be updated.
• A copy of the updated bank statement or passbook may be required.

5. Number of Employees

• If there is an increase or decrease in the number of employees, the certificate should be updated accordingly.
• The classification of the business under the MSME category may be affected.

6. Additional Business Activities

• If a business diversifies its operations and adds more activities, they can be included in the certificate.
• The nature of business should align with the NIC codes used for MSME classification.

7. Investment in Plant & Machinery / Equipment

• Any increase or decrease in investment figures needs to be updated to reflect the correct MSME classification.

8. Annual Turnover

• Changes in turnover must be updated to ensure accurate MSME classification.
• The update should be supported by financial statements or GST filings.

Restrictions on Updates

While the Udyam portal allows certain modifications, some critical details cannot be changed once registered:

1. PAN (Permanent Account Number)

• PAN is a unique identifier linked to the business and cannot be altered.
• If there is a change in ownership structure requiring a new PAN, a fresh Udyam registration is necessary.

2. Udyam Registration Number

• This number is unique and permanent for every business and cannot be modified.
• If incorrect details were provided during registration, a new registration may be required.

3. GSTIN (Goods and Services Tax Identification Number)

• If a business changes its GSTIN due to restructuring, the Udyam registration cannot be updated; a fresh registration must be made.

4. Type of Enterprise (Micro, Small, or Medium)

• The classification is determined by investment and turnover, and while these values can change, the type of enterprise updates automatically.
• Businesses cannot manually alter their classification unless they meet the required financial thresholds.

How Changes Impact MSME Classification

Updating the Udyam Certificate can significantly impact the business’s MSME classification, which determines eligibility for government benefits. The classification is based on:

1. Investment in Plant & Machinery/Equipment
   
   • Micro: Up to ₹1 crore
   • Small: Up to ₹10 crore
   • Medium: Up to ₹50 crore
   • If the investment surpasses these thresholds, the classification will automatically update.
2. Annual Turnover
   
   • Micro: Up to ₹5 crore
   • Small: Up to ₹50 crore
   • Medium: Up to ₹250 crore
   • Businesses need to update their turnover data regularly to maintain accurate classification.
3. Government Benefits and Loan Eligibility
   
   • Updated classification may affect eligibility for MSME schemes, subsidies, and loan interest rates.
   • For example, if a business grows from a micro to a small enterprise, it may have different subsidy rates.
4. Taxation and Compliance Requirements
   
   • A higher classification might require different tax compliance and regulatory obligations.
   • Businesses must ensure that they meet the necessary legal requirements post-update.

Benefits of Udyam Registration

1. Access to Government Schemes: Registered MSMEs can avail of various government schemes such as subsidies, low-interest loans, and credit guarantees.
2. Easier Bank Loans: Banks offer collateral-free loans and preferential lending to registered MSMEs.
3. Subsidized Patents & Trademark Registration: MSMEs enjoy concessions on patent and trademark fees, reducing the financial burden.
4. Exemption from Direct Taxes: Certain tax exemptions and rebates are available to registered MSMEs.
5. Protection Against Delayed Payments: The MSME Act ensures timely payments from buyers, reducing financial stress.
6. ISO Certification Reimbursement: MSMEs can get reimbursement for ISO certification expenses.
7. Participation in Government Tenders: Udyam-registered MSMEs receive preference in government procurement and tenders.

Step-by-Step Guide to Udyam Registration

Step 1: Visit the Official Udyam Registration Portal

Go to the official Udyam Registration website. portal for MSME registration.

Step 2: Click on “For New Entrepreneurs who are not Registered yet as MSME”

If you are a new applicant, select the option to register your MSME for the first time.

Step 3: Enter Aadhaar Number and Validate OTP

• For Proprietorships: The Aadhaar number of the proprietor is required.
• For Partnership Firms: The Aadhaar number of one of the partners must be provided.
• For Companies & LLPs: The Aadhaar number of the authorized signatory is needed.

After entering the Aadhaar number, an OTP (One Time Password) is sent to the registered mobile number. Validate the OTP to proceed.

Step 4: Fill in Business Details

Provide the following details accurately:

• Name of the enterprise
• Type of organization (Proprietorship, Partnership, LLP, Private Limited, etc.)
• PAN card details (mandatory for businesses with turnover above the threshold)
• Location and address of the business
• Date of business commencement
• Bank account details

Step 5: Classification of Enterprise

Businesses are classified into:

• Micro Enterprises: Investment < ₹1 crore and Turnover < ₹5 crore
• Small Enterprises: Investment < ₹10 crore and Turnover < ₹50 crore
• Medium Enterprises: Investment < ₹50 crore and Turnover < ₹250 crore

Choose the appropriate classification based on your business’s investment and turnover.

Step 6: Select Business Activities

Specify the primary and secondary business activities (Manufacturing or Service) of your MSME.

Step 7: Enter Employment and Investment Details

Provide details about the number of employees and the amount invested in plant, machinery, or equipment.

Step 8: Submit and Generate Udyam Registration Certificate

After verifying the entered details, submit the application. The system generates a unique Udyam Registration Number (URN) and an electronic certificate, which is downloadable.

Conclusion

Keeping the Udyam Certificate updated is essential for businesses to continue receiving MSME benefits, maintain compliance, and reflect accurate operational details. While several aspects such as business name, address, and financial details can be modified, certain crucial identifiers like PAN, Udyam Number, and GSTIN remain unchangeable. Regular updates help businesses