About the Portal

• Udyam is an online system for registering micro, small and medium enterprises. It was launched by the Ministry of Micro, Small & Medium Enterprises (MSME) in 2020. 
• Any person can avail a free Udyam registration for their enterprise through a fully digital and paperless process based on self-declaration. 
• Udyam registration is a prerequisite for availing the benefits of several schemes or programmes of the Ministry of Micro, Small & Medium Enterprises.
• An e-certificate called the “Udyam Registration Certificate” is issued online on completion of the registration process. This certificate has a dynamic QR Code through which the web page of the registration portal and details about the enterprise can be accessed.
• Aadhaar, PAN and GST numbers are required for registration. Udyam Registration Number is a permanent identification number, and there will be no need for renewal of Registration.

Why in News?

• The Ministry of MSME celebrated the landmark of 1 crore registrations on its Udyam Portal. 
• Following the adoption of the revised definition of MSMEs in 2020, the Udyam Registration Portal was launched on 1st July, 2020. 

MSME Definition in India

• In 2020, the government changed the basic definition of MSME and also end the difference between the manufacturing and services sector. 
• Till then, MSMEs were categorised based only on the investment in machinery or equipment. The new classification has raised the investment limit and included annual turnover as an additional criteria.
  • Accordingly, units having investment less than Rs 1 crore and turnover less than Rs 5 crore will be called Micro units. 
  • Investment between Rs 1 and Rs 10 crore and turnover of Rs 5 crore to Rs 50 crore will be categorised as Small Enterprises. 
  • Units having investment between Rs 10 crore but up to Rs 50 crore and turnover between Rs 50 crore and Rs 250 crore will now be known as Medium Enterprises.