What is Udyam Registration?
A Simple Step for Formal MSME Recognition
Udyam Registration is an online process launched by the Ministry of Micro, Small and Medium Enterprises to formally recognize and classify businesses as Micro, Small, or Medium Enterprises (MSMEs) in India.
Once registered, a business receives:
- A Udyam Registration Number (URN)
- A downloadable Udyam Certificate
- Access to various MSME schemes, subsidies, and procurement benefits
Why Government Contracts Matter for MSMEs
Stable, Scalable, and High-Value Business Opportunities
Every year, the Indian government procures goods and services ranging from stationery to software, machinery to manpower. As per the Public Procurement Policy, a minimum of 25% of all government procurement is reserved for MSMEs.
Benefits of securing government contracts:
- Timely payments from reliable buyers
- Repeat orders and long-term agreements
- National-level visibility and credibility
- Opportunity to scale operations
Udyam Registration: Your Ticket to Government Tenders
How Udyam Certificate Empowers MSMEs
With a valid Udyam Certificate, your MSME gains special privileges when applying for tenders and contracts:
1. Reserved Quotas in Public Procurement
The Indian government mandates:
- 25% procurement from MSMEs
- 4% from SC/ST-owned MSMEs
- 3% from women-owned MSMEs
Only Udyam-registered businesses can claim these reserved categories.
2. Exemption from EMD (Earnest Money Deposit)
MSMEs are exempted from paying EMD when applying for government tenders. This reduces upfront costs and makes participation easier, especially for startups and small businesses with limited working capital.
3. Waiver of Tender Cost and Application Fees
Many ministries and departments waive tender document fees for MSMEs that provide their Udyam Registration Certificate during the application.
4. Priority in Selection and Evaluation
Government departments are encouraged to favor MSMEs, especially when product quality and pricing are comparable. This gives you an edge over large corporations.
How to Start Bidding on Government Tenders with Udyam
How to Register on the Udyam Portal – A Simplified Process
1. Open the Udyam Portal
Start by visiting the official Udyam Registration website using any web browser.
2. Enter Your Business Details
Fill out the form with your business name, type (like sole proprietorship or partnership), address, and bank account information. Be sure everything is correct.
3. Check Your Details and Submit
Go through the details you've entered. Once confirmed, submit the application form.
4. Make the Payment
Choose a payment option and pay the registration fee online.
5. Verify Your Mobile Number
An OTP will be sent to the mobile number linked to your Aadhaar. Keep your phone handy.
6. Enter the OTP
Type in the OTP you received to complete mobile verification.
7. Finalize the Registration
After verification, your registration will be processed and finalized.
8. Get Your Udyam Certificate
Once approved, your Udyam Registration certificate will be generated and sent to your registered email address.
Tips to Maximize Your Success in Government Contracts
Make the Most of Your Udyam Advantage
- Keep your Udyam Certificate updated (especially business activity & address)
- Highlight your MSME status clearly in all tender applications
- Build experience through smaller orders before applying for big contracts
- Participate in MSME expos and GeM onboarding events
- Leverage help from District Industries Centers (DICs) for tender support
Common Mistakes to Avoid
- Not attaching the Udyam Certificate while bidding
- Applying without checking eligibility or product category
- Ignoring the technical specifications of the tender
- Missing deadlines due to a lack of monitoring
Note: Now, you can easily Print Udyam Certificate through the Udyam portal
Conclusion
In India, government procurement is no longer reserved for big businesses. With a simple, fast, and free Udyam registration, even small entrepreneurs can compete and succeed in government tenders. If you’re serious about growing your business, don’t miss out on this golden opportunity. Get your Udyam Certificate, register on platforms like GeM, and start exploring contract opportunities that can transform your MSME.