Udyam registration is a required document for all entrepreneurs in India. The business can convert from a partnership firm to a proprietorship. It can be mandatory to update the Udyam registration certificate. A few entrepreneurs are having some confusion about the updating of Udyam registration. The Udyam certificate is updated every year on March 31. It is a mandatory update and also some reasons to update the Udyam registration certificate.

What is Udyam registration?

Udyam registration is a government-issued certificate granted to eligible businesses as Micro, Small or Medium Enterprises (MSMEs) under the MSME Development Act, 2006. In July 2020 it was introduced as a replacement for the Udyog Aadhaar. The process of Udyam registration is made easy online with a paperless process. After successfully completing your registration process, you get 16 digits of the Udyam registration number FSSAI. The Udyam Registration ID is very important to log in to your Udyam portal. Udyam registration helps to grow your business. And accessing the various government benefits. 

Who can apply to register for the Udyam certificate?

Udyam registration is a government platform for registering micro, small and medium enterprises in India.

Types of businesses eligible for Udyam registration:

• Proprietorships.

• Partnerships firm.

• Hindu undivided family (HUF).

• One-person companies (OPC).

• Private limited companies.

• Public limited companies.

• Limited liability partnership. 

• Co-operative society.

• Any other legal entity.

Eligibility of business entities:

• Manufacturing enterprises.

• Service enterprises.

• Trading is not eligible for Udyam registration.

Process Update Udyam Certificate for Partnership to Proprietorship Conversion: 

Step 1: Visit the Udyam registration portal.

Step 2: Select the Update Udyam Certificate section.

Step 3: Fill out the application form, such as:

• Applicant name

• Udyam registered mobile number

• Email ID

• Udyam registration number

• Choose the option on which you want to receive OTP.

• Provide the details to be updated on the certificate.

• Enter the verification.

Step 4: Submit the application.

Who is authorised to update the Udyam registration?

Updating the Udyam Registration Certificate is a process that should be undertaken by the authorised signatory of the enterprise, typically the proprietor, managing partner, or an authorised director.

 This ensures that the information provided is accurate and legally binding.​ The Ministry of Micro, Small, and Medium Enterprises (MSME) emphasises that the registration and any subsequent updates should be carried out exclusively through the official Udyam Registration Portal. No private agencies or individuals are authorised to perform these activities on behalf of the enterprise.

Steps to Update Udyam Certificate After Conversion to Proprietorship:

Cancel the Existing Udyam Registration:

• The previous Udyam registration was cancelled.

• This prevents duplicate or conflicting records for a single business.

Apply for a New Udyam Registration:

• A new Udyam registration must be created under the proprietor’s name with their Aadhaar and PAN details.

• The business details (name, activities, address, etc.) can remain the same if they have not changed.

Documentation Required:

• Proof of closure/dissolution of the partnership firm (if available).

• Aadhaar and PAN of the proprietor.

• GST certificate (if applicable) showing the updated business constitution.

• Any other relevant licences or approvals under the proprietorship name.

Notify Other Departments (if applicable):

• Any changes must also be updated with GST, Shops & Establishments, or other state/local bodies; the updates must be mirrored accordingly.

• It’s important to ensure these records are in sync with Udyam for data consistency.

You Can Apply for Udyam Re-Registration Through Udyam Portal

Conclusion:

The government initiative that provides a unique identification number to small businesses, based on their self-declared details such as investment in plant and machinery or equipment, turnover, etc. The benefits of the Udyam Certificate are access to government schemes and subsidies, Easier access to loans and credit at lower interest rates, eligibility for MSME tenders, protection against delayed payments, and preference in government procurement policies.