Nature of Business

The business should be involved in manufacturing or providing services. Trading enterprises are not eligible for Udyam registration.

Investment Limit

The investment in plant and machinery or equipment should not exceed the prescribed limit, which varies for micro, small, and medium enterprises.

Micro Enterprises: Investment up to Rs. 1 crore.

Small Enterprises: Investment between Rs. 1 crore and Rs. 10 crore.

Medium Enterprises: Investment between Rs. 10 crore and Rs. 50 crore.

Turnover Limit

The annual turnover of the business should not exceed the specified limit.

Micro Enterprises: Turnover up to Rs. 5 crore.

Small Enterprises: Turnover up to Rs. 50 crore.

Medium Enterprises: Turnover up to Rs. 250 crore.

Registration Process: Businesses should adhere to the registration process and guidelines set by the Ministry of Micro, Small and Medium Enterprises (MSME).

Prior Registration:

Any business that has already obtained an MSME registration (Udyog Aadhaar Memorandum) or any other form of registration under the previous MSME classification system should re-register under the Udyam Registration system.

Proprietorship and Partnership Firms

Sole proprietorships, Hindu Undivided Family (HUF), and partnership firms are eligible to apply for Udyam Registration.

Associations and LLPs

Limited Liability Partnerships (LLPs) and associations of persons are also eligible to apply for the Udyam Certificate.

PAN and GST

The business should have a valid PAN (Permanent Account Number) and GST (Goods and Services Tax) registration.

Independent Business

The business should be an independent entity and not be a subsidiary or a branch of another enterprise. Each business unit should have a separate Udyam Certificate if it qualifies independently.

Agriculture and Allied Activities

Businesses involved in agriculture and related activities, like horticulture, sericulture, apiculture, and pisciculture, can also apply for Udyam Registration.

Restrictions on Previous Defaulters

Businesses or entrepreneurs who have defaulted on repayment of government loans, subsidies, or financial assistance may face restrictions on obtaining Udyam Registration.

Statutory Compliance

The business should comply with all statutory and regulatory requirements, including labor laws, tax laws, and environmental regulations.

Renewal of Udyam Certificate

Existing MSMEs with Udyog Aadhaar Memorandum (UAM) must transition to the Udyam Registration system, as UAM is no longer valid. Timely renewal and updates of the Udyam Certificate are essential to maintain its validity.

Single Registration

A single business entity should have only one Udyam Certificate. Multiple registrations for the same entity are not allowed.

Validity for Entities Under Transition

Businesses in the process of transitioning to the Udyam Registration system should follow the guidelines provided by the government for the transition process.

Professional Service Providers

Professional service providers like doctors, lawyers, and accountants may not qualify for Udyam Registration since they are not involved in manufacturing or providing traditional goods and services.

Also read - MSME registration fee

Conclusion

Eligibility criteria may be subject to change based on government regulations and policies, so it's advisable to check the latest requirements and guidelines from the Ministry of MSME or the official Udyam Registration portal before applying for the Udyam Certificate.