Udyam Sanchar: Facilitating MSME Registration Online


Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in fostering economic growth, generating employment opportunities, and driving innovation in various sectors of the economy. Recognizing their significance, the Government of India has introduced numerous initiatives to support and promote the growth of these enterprises. One such initiative is the Udyam Sanchar portal, which aims to streamline the process of MSME registration online. In this article, we will explore the significance of MSMEs, the importance of registration, and the features of the Udyam Sanchar platform.

The Significance of MSMEs

Micro, Small, and Medium Enterprises are the backbone of the Indian economy. They contribute significantly to the GDP and export earnings, ensuring regional development and inclusive growth. MSMEs are known for their flexibility, adaptability, and ability to generate employment, especially in rural and semi-urban areas. These enterprises play a crucial role in promoting entrepreneurship and reducing regional disparities. Recognizing their potential, the government has taken several measures to provide them with a conducive environment to thrive.

Understanding the Importance of MSME Registration

MSME registration holds immense value for enterprises operating in this sector. It offers several benefits that can help in their growth and sustainability:

Availing Government Schemes: 

Registered MSMEs can access various government schemes and subsidies tailored to support their specific needs. These schemes provide financial assistance, marketing support, technology upgradation, and more.

Priority Sector Lending: 

Banks and financial institutions are encouraged to provide loans at concessional interest rates to MSMEs. With registration, these enterprises are more likely to receive priority sector lending, making it easier for them to secure funds for expansion and development.

Collateral-Free Loans: 

Registered MSMEs can avail collateral-free loans under certain schemes, reducing the burden of providing substantial security for borrowing capital.

Protection against Delayed Payments: 

The Micro, Small, and Medium Enterprises Development (MSMED) Act provides safeguards against delayed payments from buyers, ensuring a smoother cash flow for the enterprises.

Easy Access to Government Tenders: 

MSMEs with valid registration can participate in government tenders specifically reserved for this sector, increasing their business prospects.

Introducing Udyam Sanchar: The Online MSME Registration Portal

In June 2020, the Government of India replaced the earlier Udyog Aadhaar Memorandum (UAM) portal with the Udyam Sanchar portal to provide a simplified and user-friendly online platform for MSME registration. The Udyam Sanchar portal is integrated with the Central Government’s Udyam Registration system and facilitates the registration process through a streamlined online interface. Let’s explore the key features of the Udyam Sanchar portal:

Single Window Registration: 

The Udyam Sanchar portal offers a one-stop destination for MSME registration, making it convenient for entrepreneurs to apply and obtain their Udyam Registration Number (URN).

Aadhaar-Based Registration: 

The registration process requires the applicant’s Aadhaar number, making it quicker and more straightforward to verify the identity of the business owner.


MSMEs can self-certify their enterprise’s details and do not need any documentation during the initial registration process. However, they must ensure the accuracy of the information provided.

No Fees for Registration: 

Unlike the earlier UAM portal, the Udyam Sanchar portal does not charge any fees for MSME registration, making it more accessible to small businesses and startups.

Instant Issuance of URN: 

Upon successful registration, the Udyam Sanchar portal instantly generates the Udyam Registration Number (URN), providing immediate recognition as an MSME.

Compatibility with Udyog Aadhaar Memorandum (UAM): 

Existing enterprises registered under the Udyog Aadhaar Memorandum can also migrate to the Udyam Sanchar portal with ease.

See Also: Print Udyam Application


The Udyam Sanchar portal has revolutionized the process of MSME registration in India by providing a seamless online platform that empowers entrepreneurs to register their businesses swiftly and access various government benefits. This initiative not only promotes formalization but also fosters growth, competitiveness, and innovation within the MSME sector. By continuing to support and strengthen these enterprises, India ensures a more vibrant and sustainable economy for years to come.

Related Articles

Leave a Reply

Back to top button