As a part of the “Startup India” program, the Startup India Seed Fund Scheme was introduced in 2021 to facilitate the process of creating a robust startup ecosystem and providing financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.
Description
Who is it for?
Benefits
To provide monetary support for proof of concept, prototype development, product trials, market, and commercialization
Startups using Technology as their core product or service
Under this scheme, Financial assistance up to Rs. 50 lakh will be provided to startups at an early stage through incubators
Startups should not have received more than Rs 10 lakh of monetary support under other significant government schemes.
The Startup shall have been in existence for no more than two years at the time of application.
Should be using technology as its core product or service to create innovative solutions in different sectors.
Must have a business idea to develop the product with a scope of scaling
According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the company at the time of application to the incubator.
The seed support is generally available in grants and debt/convertible debentures.
Application procedure for Startups
The application procedure for availing the seed fund from the incubators by the startups under the StartUp India Seed Fund Scheme is as follows:
On the top right side of the homepage, click the 'Login' button, then the 'Create an Account' option at the bottom of the "Login" tab.
The ‘Startup India’ registration page will open.
After filling out the form, click the 'Register' button.
An OTP will be sent. Enter the OTP and click the ‘Submit’ button.
Startup India Seed Fund Application
Go to the website again and click on the ‘Apply Now’ button on the right-hand side of the homepage.
Click on the ‘Apply Now’ button under the ‘For Startups’ option and log in using the username and password registered.
The application form will open. Put in all the details, upload the documents, and click on the ‘Submit’ button.
The application will be submitted for the selection of the startup.
Selection of Startups for the Scheme
The Eligible Incubator will select startups for this scheme based on the following criteria:
Idea
Feasibility
Novelty
Fund Utilization Plan
Business Plan
Presentation
Potential Impact
Benefits
To register a company in the U.S., several essential criteria must be met.
Under this scheme, up to Rs 50 lakh in financial assistance will be provided to startups at an early stage through incubators.
The incubator will disburse the seed fund to an eligible startup: - As a grant for validation of “prototype development, proof of concept or product trials”- Up to Rs. 20 Lakh - Investment for commercialization, market-entry, or scaling up through debt-linked instruments - Up to Rs. 50 Lakh
Once incubated, physical infrastructure, testing support, mentoring for prototype or commercialization, human resources, and legal compliances are provided to the startups, all by the incubators.
For eligible startups, income tax and capital gains tax exemptions are available.
Post funding process
Each incubator must track specific criteria for each beneficiary startup. Every beneficiary startup must present the reports to its incubators periodically. The data is submitted to Startup India in real-time via their web dashboards and further to the EAC quarterly. Each Startup’s return on investment is also reported by the designated incubator.
A Designated Partner in an LLP (Limited Liability Partnership) is similar to a Director in a Private Limited Company but enjoys greater rights and privileges. Introduced under the Limited Liability Partnership Act, 2008, a Designated Partner is responsible for compliance, financial management, and legal matters in an LLP. This article explains the designated partner meaning, their role, responsibilities, and privileges, helping you understand their significance in an LLP.
What is a designated partner in LLP?
A Designated Partner in an LLP is an individual who is appointed to manage the operations and compliance of the LLP. They are responsible for filing documents, ensuring annual returns are submitted, and managing financial and legal obligations within the business.
Who is eligible for LLP?
The eligibility to form an LLP in India is that there must be at least two partners, one of whom is an Indian resident. Partners must be between atleast 18 years of age, and both must agree to contribute capital. Additionally, obtaining a Digital Signature Certificate (DSC) and a Designated Partner Identification Number is mandatory.
What is the age limit for a designated partner?
There is no specific age limit for a Designated Partner in an LLP. However, a Designated Partner must be an adult, meaning at least 18 years old. Minors are not allowed to be Designated Partners.
What is the role of a designated member in an LLP?
The role of a Designated Partner in LLP includes signing important documents, managing the financial aspects of the LLP, ensuring legal compliance, and working on behalf of the LLP in official matters. They also handle registration, filing of annual returns, and cooperating during investigations.
Only individuals can be Designated Partners in an LLP. As per the Limited Liability Partnership Act, 2008, a minimum of two Designated Partners is mandatory, and at least one must be an Indian resident. This designation is crucial for ensuring legal compliance, managing financial responsibilities, and fulfilling statutory obligations within the LLP.
Who Can't Be a Designated Partner?
Undischarged insolvents
Individuals declared insolvent or who have withheld creditor payments in the last five years
Those imprisoned for six months or more for offences involving moral turpitude
Minors below 18 years
The Central Government holds the authority to annul these disqualifications if deemed necessary.
Designated Partner Identification Number (DPIN)
Every Designated Partner in an LLP must obtain a Designated Partner Identification Number , also referred to as a Director Identification Number (DIN). This unique number is mandatory for LLP registration and compliance. To obtain a DPIN, you need a Class 2 digital signature, which ensures secure authentication.
All partners in an LLP are eligible to become Designated Partners, but only those specified in the incorporation document hold this role at the time of registration. The LLP Partnership Deed allows rotation of the Designated Partner role, enabling different partners to take on responsibilities with mutual consent. This flexibility ensures equal participation while maintaining compliance with LLP regulations.
Documents Required for Becoming a Designated Partner
To become a Designated Partner in an LLP, you need to apply for a Designated Partner Identification Number. For this, you must submit the following documents:
Identity Proof – A self-attested or certified copy of a document that includes your photograph, date of birth, and father’s or husband’s name (such as an Aadhaar card, PAN card, or passport).
Residential Proof – A self-attested or certified copy of an address proof like a utility bill, bank statement, or rent agreement.
For Nominees of a Body Corporate – A resolution or authorisation letter from the company mentioning their name and address is needed.
For Foreign Nationals – A valid passport copy is needed.
Authorities for Attestation/Certification
Certain officials and professionals can attest or certify documents needed for a Designated Partner Identification Number . These include:
Gazetted officers from the Central or State Government
Notaries public
Practicing professionals like Company Secretaries, Chartered Accountants, or Cost and Works Accountants
While attesting documents, the authority must include their name in capital letters, registration number, ministry or department details, and an official seal or stamp. This ensures the documents are valid and accepted for DPIN approval.
Translation Certificate
If your documents are in a language other than Hindi or English, you must attach a translated copy. This translation must be certified and attested to meet compliance requirements. It ensures that authorities can verify the details correctly and process the application without delays.
Appointment of Designated Partner
At least two individuals must be appointed as Designated Partners when registering an LLP. If a Designated Partner leaves the LLP, a new one must be appointed within 30 days. Failing to do so will result in all partners being considered Designated Partners, which may lead to compliance issues. To complete the appointment process, the following forms must be submitted:
To appoint a Designated Partner, the following forms must be submitted:
Form 9 – This form records the consent of an individual to become a Designated Partner.
Form 4 – It contains details of individuals who have given their consent to take on the role.
Form 10 – This form is used to notify any changes made by the Designated Partners.
Form 5 – Every LLP must submit this form to the registrar, providing details of individuals who have consented to become Designated Partners. It must be filed within 30 days of the appointment.
Duties and Responsibilities of a Designated Partner
Signing the Statement of Account and Solvency: The Designated Partner must sign the Statement of Account and Solvency, confirming the financial position of the LLP. This document is crucial for transparency and is filed annually.
Filing Annual Returns on Time: It is the Designated Partner’s responsibility to ensure that the LLP files its annual returns within 60 days of the financial year’s closure. Late filing can result in penalties and legal complications.
Filing Additional Documents: The Designated Partner must submit any other documents requested by regulatory authorities to comply with legal requirements.
Cooperating with Inspectors: During investigations or inquiries, the Designated Partner is required to cooperate with inspectors, providing necessary documents and signing examination notes to verify accuracy.
Reimbursing Investigation Expenses: In the case of investigations, the Designated Partner is responsible for reimbursing the costs incurred, such as those related to audits or compliance checks.
Penalty for Not Having a Designated Partner
Every LLP is required to have at least two Designated Partners at all times. Failing to comply with this requirement incurs a penalty starting at ₹10,000, which can increase to ₹5,00,000.
If a Designated Partner exits the LLP and is not replaced within 30 days, the LLP will face similar penalties. Non-compliance with this rule can lead to legal and financial consequences, making it essential for LLPs to appoint and maintain the required number of Designated Partners.
Rights of a Designated Partner
Decision-Making Rights
A Designated Partner holds significant decision-making authority within an LLP. They are involved in making key business decisions, including formulating policies, setting operational strategies, and managing the financial aspects of the LLP. Their role is vital in ensuring that the LLP functions efficiently and adheres to its business goals.
Profit-Sharing and Financial Rights
A Designated Partner is entitled to a share of the profits generated by the LLP, with the exact share determined by the LLP agreement. This agreement outlines how profits and losses are distributed among the partners, ensuring that the Designated Partner receives a portion based on their involvement and the terms set forth.
Additionally, they have financial rights concerning capital contributions and can receive distributions and benefits according to the LLP's agreed financial terms.
Right to Access LLP Records and Documents
A Designated Partner has the right to access all official records and documents of the LLP. This includes financial statements, tax filings, agreements, and any legal documents related to the firm’s operations. This right ensures transparency within the LLP, allowing the Designated Partner to make informed decisions and stay updated on the company’s financial and legal status.
Liabilities of a Designated Partner
Liabilities in Case of Non-Compliance
A Designated Partner is responsible for ensuring that the LLP complies with all relevant legal requirements. Failure to comply with regulations such as filing annual returns or paying taxes can result in penalties, fines, and legal action that impacts both the LLP and the individual partner.
Legal and Financial Liabilities Under the LLP Act
Under the LLP Act, 2008, a Designated Partner may be personally liable if the LLP violates legal obligations. This includes non-payment of statutory dues, failure to meet regulatory requirements, or failure to comply with financial disclosures. In such cases, the Designated Partner is expected to take responsibility for rectifying the situation, with potential legal and financial penalties if the issue remains unresolved.
Situations Where Personal Liability May Arise
Although an LLP offers limited liability protection, there are circumstances where a Designated Partner could be personally liable. If involved in fraudulent activities, misrepresentation, or intentionally ignoring legal obligations, the Designated Partner may face personal liability. This could result in the loss of personal assets or legal actions separate from the LLP’s legal structure.
A Designated Partner in an LLP is an individual who is appointed to manage the operations and compliance of the LLP. They are responsible for filing documents, ensuring annual returns are submitted, and managing financial and legal obligations within the business.
The eligibility to form an LLP in India is that there must be at least two partners, one of whom is an Indian resident. Partners must be between atleast 18 years of age, and both must agree to contribute capital. Additionally, obtaining a Digital Signature Certificate (DSC) and a Designated Partner Identification Number is mandatory.
There is no specific age limit for a Designated Partner in an LLP. However, a Designated Partner must be an adult, meaning at least 18 years old. Minors are not allowed to be Designated Partners.
The role of a Designated Partner in LLP includes signing important documents, managing the financial aspects of the LLP, ensuring legal compliance, and working on behalf of the LLP in official matters. They also handle registration, filing of annual returns, and cooperating during investigations.
Sarthak Goyal
Sarthak Goyal is a Chartered Accountant with 10+ years of experience in business process consulting, internal audits, risk management, and Virtual CFO services. He cleared his CA at 21, began his career in a PSU, and went on to establish a successful ₹8 Cr+ e-commerce venture.
He has since advised ₹200–1000 Cr+ companies on streamlining operations, setting up audit frameworks, and financial monitoring. A community builder for finance professionals and an amateur writer, Sarthak blends deep finance expertise with an entrepreneurial spirit and a passion for continuous learning.
With a multitude of regulations varying from state to state, figuring out what licenses you need and how to obtain them can feel like attempting to solve a complex puzzle with missing pieces. However, worry not! We understand the challenges you face, and we're here to guide you through every step of the way.
In this blog, we'll lead you through the intricacies of obtaining the necessary licenses to set up and operate your business seamlessly in India.
Business licenses play a crucial role in India's business landscape for several reasons:
Legal Compliance
Obtaining the necessary licenses ensures that businesses operate within the legal framework defined by government regulations.
Consumer Trust and Safety
Certain licenses, such as FSSAI licenses for food-related businesses or health licenses for healthcare providers, signify compliance with safety and quality standards.
Public Health and Environmental Protection
Licenses related to environmental clearances, waste management, and pollution control are essential for businesses to mitigate their environmental impact.
Taxation and Revenue Generation
Business licenses, such as GST registration and professional tax registration, facilitate tax compliance and revenue generation for the Government.
Regulation of Market Competition
Certain licenses, such as trade licenses and import-export licenses, regulate market entry and competition.
Employee Welfare and Labor Rights
Labor licenses ensure that businesses adhere to labour laws and provide a safe and fair working environment for employees.
Last but certainly not least, business licenses are a badge of honour for your business. They show investors, partners, and customers that you're serious, professional, and committed to doing things the right way. In a crowded marketplace, that kind of credibility can make all the difference.
Common Types of Business Licenses in India
In India, obtaining the necessary business licenses depends on the type of business activity you intend to undertake and the location in which you plan to operate. Here are some common types of business licenses required in India:
Business Registration:
While not classified as a license, registering a business with the Ministry of Corporate Affairs (MCA) in India is a fundamental legal requirement if you are an entrepreneur establishing a business venture.
Depending on the type of business structure chosen, such as sole proprietorship, partnership, limited liability partnership (LLP), or private/public limited company, the eligibility criteria, registration process, and compliance obligations can vary significantly.
There are primarily following types of Business structures:
Ultimately, registering your business with the MCA not only establishes its legal legitimacy but also lays the foundation for growth, credibility, and long-term success in the Indian startup ecosystem.
For detailed information regarding the eligibility criteria, registration process, and compliance obligations associated with different business structures, check out the link below.
Similarly, Udyam Registration is not technically a license. However, it provides recognition and certain benefits to Micro, Small, and Medium Enterprises (MSMEs) in India.
The eligibility criteria for Udyam Registration are based on the investment, turnover, years of establishment, etc.
Once registered as an MSME, you can receive a unique Udyam Registration Number (URN) and a certificate that gives access to government schemes, subsidies, and incentives.
GST Registration
In India, Goods and Services Tax (GST) registration is mandatory for businesses meeting certain turnover thresholds, which is Rs. 40 Lakhs (for goods) and Rs. 20 Lakhs (for services) or engaging in specified activities.
Here's an overview of the process of obtaining GST registration, which is not exactly a license but a crucial registration for businesses:
Fill out the registration form with accurate details regarding your business activities, turnover, and so on.
Furnish the necessary information, including business details, PAN, Aadhaar, bank account details, and relevant documents.
Upon successful verification, you will be issued a unique Goods and Services Tax Identification Number (GSTIN)- a 15-digit unique identifier for the businesses under the GST regime.
Professional Tax Registration
Professional Tax Registration is a requirement for employers and individuals engaged in certain professions, trades, or employment in India. It is a state-level tax levied by the respective State Governments for the welfare of professionals and workers in various sectors.
In some states like Maharashtra, obtaining professional tax registration is mandatory.
Shops and Establishment License
The Shops and Establishment License is a mandatory requirement for businesses operating within a specific jurisdiction, typically at the state level, in India. It is governed by the respective state Shops and Establishment Act and its rules, which vary slightly across different states.
The primary purpose of the Shops and Establishment License is to regulate the operations of shops, commercial establishments, and other businesses within a state with provisions related to-
Working hours
Welfare and safety of employees
Employment practices
The Shops and Establishment License is usually valid for a specific period, after which it needs to be renewed to continue operating legally. A valid Shops and Establishment License is often required for various business activities, including obtaining other licenses, permits, or registrations.
Trade License
A trade license is a legal permit issued by the local municipal authority or council that authorizes your business to engage in specific commercial activities within a designated area or jurisdiction. Trade licenses specify the types of commercial activities that a business is permitted to undertake. These activities may include manufacturing, trading, storage, distribution, or provision of certain services, depending on the nature of the business and local regulations.
In order to obtain a Trade license, you must submit an application to the local municipal authority or council responsible for issuing licenses. The application process typically requires businesses to provide certain documents, such as -
Proof of identity,
Address proof,
Proof of ownership or tenancy of the premises
Approvals and NOCs (No Objection Certificates) from relevant authorities
Once the application is approved and all requirements are met, the local authorities will issue the trade license to your business, specifying the permitted activities, duration of validity, and any conditions or restrictions.
Labour License
Labour licenses, also known as labour permits or labour registrations, are legal authorizations issued by government authorities (Shram Suvidha Portal) to businesses, particularly those employing a significant number of workers, to ensure compliance with labour laws and regulations.
It safeguards the rights and interests of workers by setting standards for fair treatment, safe working conditions, and adequate remuneration. These licenses often require businesses to adhere to minimum wage laws, working hour restrictions, overtime compensation, leave entitlements, and other labour standards aimed at promoting employee well-being.
The process of obtaining a labour license may vary depending on the jurisdiction and the specific requirements imposed by labour laws and regulations.
Food Safety and Standards Authority of India (FSSAI) License
The Food Safety and Standards Authority of India (FSSAI) license, commonly referred to as the FSSAI license, is a mandatory requirement for businesses involved in the manufacturing, processing, packaging, storage, distribution, and sale of food products in India.
Obtaining an FSSAI license is a legal requirement for food businesses operating in India. It is mandated by the Food Safety and Standards Act of 2006, and non-compliance can result in penalties, fines, or even closure of the business.
Depending on the scale and nature of the business, there are different types of FSSAI licenses, such as Basic Registration, State License, and Central License, each catering to specific business activities and turnover thresholds.
Import-Export License
An import-export license, also known as an import-export permit, is a legal authorization issued by government authorities that allows businesses to engage in the importation and/or exportation of goods across international borders.
An Importer Exporter Code is mandatory for the export and import of goods. It is a 10-digit identification number that is compulsory for the purpose of exporting from India as well as for the purpose of importing to India. It has lifetime validity.
The process to obtain an Import Export Code (IEC) registration certificate online involves several steps, as outlined below:
Fill out the Application Form.
Gather the necessary documents as per the requirements specified. • For Private Limited/ LLPs- Company PAN Card, Incorporation Certificate, Aadhar Card, PAN Card of all Directors/Partners, and Cancelled Cheque of the Company. • For Partnerships- Partnership Firm PAN Card, Partnership Deed, Aadhar Card, PAN Card of all Partners, and Cancelled Cheque of the Partnership Firm.
Pay the required Fees.
Upon successful verification and processing, the Import Export Code (IEC) registration certificate will be issued. You will receive the certificate electronically using the registered email ID provided during the application process.
While we covered some common licenses necessary for businesses in India, certain industry-specific licenses and permits exist that are crucial for compliance with sector-specific laws, regulations, and standards. These can vary widely depending on the nature of the industry, the type of activities involved, and the potential risks or impacts associated with the operations.
Business Registration with Razorpay Rize
To conclude, securing these licenses is crucial for the seamless operation of your business. However, it's essential to prioritize registering your business as a legal entity beforehand, as this step is often a prerequisite for applying for most of these licenses.
Razorpay Rize simplifies this fundamental yet vital aspect of the process with its online company registration services. To learn more about how Razorpay Rize can assist you, click below.
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*Prices and documents can differ based on the company type.
Nipun Jain is a seasoned startup leader with 13+ years of experience across zero-to-one journeys, leading enterprise sales, partnerships, and strategy at high-growth startups. He currently heads Razorpay Rize, where he's building India's most loved startup enablement program and launched Rize Incorporation to simplify company registration for founders.
Previously, he founded Natty Niños and scaled it before exiting in 2021, then led enterprise growth at Pickrr Technologies, contributing to its $200M acquisition by Shiprocket. A builder at heart, Nipun loves numbers, stories and simplifying complex processes.
Micro, Small, and Medium Enterprises (MSMEs) are the heartbeat of India’s economy, contributing nearly 30% to the country’s GDP and employing over 110 million people. Whether it’s a small textile manufacturer in Surat, a local bakery in Bengaluru, or a budding tech startup in Pune, MSMEs fuel innovation, create jobs, and drive regional development.
To simplify this, the government introduced Udyog Aadhaar, and, in 2020, transitioned to Udyam Registration—a move designed to make life easier for MSMEs.
For many small business owners, dealing with paperwork and compliance can feel overwhelming. Udyam Registration streamlines the process, making it easier to access financial aid and government schemes and even improving business credibility.
What is the difference between Udyam and Udyog Aadhaar?
Udyog Aadhaar was the earlier system for MSME registration, while Udyam Registration replaced it in 2020 to make the process more streamlined and mandatory for availing government benefits. Udyam requires additional details like PAN and GSTIN and provides better government support.
Is it mandatory to convert Udyog Aadhaar to Udyam?
Yes, businesses that were previously registered under Udyog Aadhaar must migrate to Udyam Registration to continue availing of government schemes, subsidies, and benefits.
Can I have two Udyam registrations?
No, an enterprise can have only one Udyam Registration linked to its PAN. However, a business can list multiple activities under the same registration.
How long does it take to get a Udyam number?
After obtaining Udyam Registration, businesses should:
What is the next step after Udyam registration?
After obtaining Udyam Registration, businesses should: Download the Udyam Certificate for records. Apply for government schemes and financial support. Update business details if required. Utilise benefits such as loans, tax exemptions, and subsidies.
Who is eligible for Udyam?
Micro, Small, and Medium Enterprises (MSMEs) engaged in manufacturing, production, processing, or service activities are eligible for Udyam Registration. The eligibility is based on turnover and investment limits defined by the government.
Who is eligible for Udyog Aadhaar?
Previously, Micro and Small Enterprises could register under Udyog Aadhaar. However, this system has been replaced by Udyam Registration, which is now the mandatory process.
Is Udyog Aadhaar free of cost?
Yes, Udyog Aadhaar registration was free of cost. Similarly, Udyam Registration is also completely free and can be done online through the official MSME portal.
Udyog Aadhaar was introduced as a unique identification number for MSMEs to simplify the registration process. It replaced the older Small Scale Industries (SSI) registration system, allowing businesses to register with just a single-page form.
The primary purpose of Udyog Aadhaar was to ease the bureaucratic burden on small businesses and provide them with access to government schemes, subsidies, and financial assistance. This simplified registration made it easier for MSMEs to establish credibility and seek funding opportunities.
What is Udyam Registration?
Udyam Registration is the updated and more comprehensive registration system for MSMEs under the Ministry of Micro, Small, and Medium Enterprises.
Unlike Udyog Aadhaar, Udyam Registration is mandatory for businesses to avail themselves of government benefits after 2020. The online registration allows businesses to self-certify their classification as micro, small, or medium enterprises.
The Udyam Registration Certificate is an official document issued by the Ministry of Micro, Small, and Medium Enterprises (MSME) to businesses that successfully register under the Udyam portal. This certificate serves as legal proof of a business’s MSME status and contains a unique Udyam Registration Number.
Since the entire process is online and paperless, businesses can obtain their Udyam Registration Certificate quickly, ensuring seamless access to financial aid and growth opportunities.
Difference Between Udyog Aadhaar and Udyam Registration
Here is the difference between Udyog Aadhaar and Udyam Registration:
Udyog Aadhar
Udyam Registration
Eligibility
Available for micro and small enterprises
Covers micro, small and medium enterprises
Registration Process
Simple single-page form submission
More detailed online process with verification
Documents Required
Aadhar and PAN details for verification
Aadhar, PAN, and GSTIN required for verification
Legal Status
Optional for MSMEs
Mandatory to access government benefits
Identification Number
The unique identification number for Udyog Aadhar was known as Udyog Aadhar Memorandum
The unique identification provided for Udyam is known as the Udyam registration number
Government Schemes
Limited access to schemes
Priority access to MSME-focused schemes & initiatives
Validity
No specific validity
Udyam certificate is valid for a lifetime
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Top 5 Benefits of Udyog Aadhaar
1. Access to Government Schemes and Subsidies
Udyog Aadhaar holders could apply for various MSME support programs, including credit-linked subsidies and financial aid.
2. Easier Loan Approvals
Banks and financial institutions provided loans at lower interest rates to Udyog Aadhaar-registered businesses.
3. Enhanced Business Credibility
Registration helped businesses gain recognition and build trust with customers, investors, and suppliers.
4. Simplified Government Tender Applications
Businesses could easily apply for government tenders, increasing their opportunities in public sector projects.
5. Tax Rebates and Concessions
Udyog Aadhaar allowed businesses to benefit from various tax exemptions, reducing operational costs.
5 Key Benefits of Udyam Registration
1. Official Recognition and Credibility
Udyam Registration serves as proof of a business’s legal status, making it easier to secure partnerships and attract investors.
2. Better Financial Support
MSMEs registered under Udyam get easier access to bank loans, credit facilities, and government funding programs.
3. Simplified Access to Government Schemes
Registered businesses can avail themselves of subsidies, grants, and financial incentives tailored for MSMEs.
4. Tax Benefits
Udyam-registered MSMEs enjoy tax rebates and exemptions, reducing their overall financial burden.
5. Priority Access to Government Contracts
Udyam Registration ensures that businesses get priority consideration in public sector tenders, helping them grow through government contracts.
How to Migrate to Udyam Registration?
With Udyam Registration now mandatory for government benefits, MSMEs registered under Udyog Aadhaar must migrate to the new system. The migration process is straightforward:
Visit the Udyam Registration Portal
Go to the official Udyam Registration website.
Enter Udyog Aadhaar Details
Provide your Udyog Aadhaar number along with Aadhaar-linked mobile details.
Submit PAN and GSTIN
Enter PAN and GSTIN details for verification.
Complete Self-Declaration
Fill in business classification details based on investment and turnover.
Receive Udyam Registration Certificate
After successful verification, the Udyam Registration certificate is generated.
Migrating to Udyam Registration ensures businesses continue to enjoy financial aid, easier access to credit, and government compliance.
Understanding the differences between Udyog Aadhaar and Udyam Registration is essential for MSMEs to stay compliant and competitive.
While Udyog Aadhaar served as a stepping stone for MSMEs, Udyam Registration is now mandatory for accessing government benefits, funding opportunities, and enhanced business credibility.
Migrating to Udyam Registration ensures businesses remain eligible for financial support and government schemes, enabling them to grow and thrive in India’s evolving economic landscape. If you haven't yet migrated, now is the time to secure your business's future with Udyam Registration!
Udyog Aadhaar was the earlier system for MSME registration, while Udyam Registration replaced it in 2020 to make the process more streamlined and mandatory for availing government benefits. Udyam requires additional details like PAN and GSTIN and provides better government support.
Yes, businesses that were previously registered under Udyog Aadhaar must migrate to Udyam Registration to continue availing of government schemes, subsidies, and benefits.
No, an enterprise can have only one Udyam Registration linked to its PAN. However, a business can list multiple activities under the same registration.
Micro, Small, and Medium Enterprises (MSMEs) engaged in manufacturing, production, processing, or service activities are eligible for Udyam Registration. The eligibility is based on turnover and investment limits defined by the government.
Previously, Micro and Small Enterprises could register under Udyog Aadhaar. However, this system has been replaced by Udyam Registration, which is now the mandatory process.
Yes, Udyog Aadhaar registration was free of cost. Similarly, Udyam Registration is also completely free and can be done online through the official MSME portal.
Akash Goel
Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.
His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.
Exciting news! Incorporation of our company, FoxSell, with Razorpay Rize was extremely smooth and straightforward. We highly recommend them. Thank you Razorpay Rize for making it easy to set up our business in India. @foxsellapp #razorpayrize#rizeincorporation
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay. #entrepreneur#tbsmagazine#rize#razorpay#feedback
TBS Magazine
Hey, Guys! We just got incorporated yesterday. Thanks to Rize team for all the Support. It was a wonderful experience. CHEERS 🥂 #entrepreneur #tbsmagazine #rize #razorpay #feedback
Exciting news! Incorporation of our company, FoxSell, with Razorpay Rize was extremely smooth and straightforward. We highly recommend them. Thank you Razorpay Rize for making it easy to set up our business in India. @foxsellapp #razorpayrize #rizeincorporation
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay. #entrepreneur #tbsmagazine #rize #razorpay #feedback
TBS Magazine
Hey, Guys! We just got incorporated yesterday. Thanks to Rize team for all the Support. It was a wonderful experience. CHEERS 🥂 #entrepreneur #tbsmagazine #rize #razorpay #feedback
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