Through the Udyam registration process, micro, small, and medium enterprises (MSMEs) in India get recognition from the government. This is a very important step if MSMEs want to receive government schemes, subsidies, or other benefits under the MSME program. Although the registration process is very simple and online, sometimes it does not go smoothly, and many errors may occur. Many business owners run into roadblocks that delay or complicate their registration.
In this blog, we'll talk about the top challenges faced during Udyam registration and how you can easily fix them.
1. Aadhaar Authentication Issues
The Problem:
MSME registration is Aadhaar-based, which means the Aadhaar details of the business owner (for proprietorship) or one of the partners/directors (for other business types) must be verified. Sometimes, users face authentication errors due to:
- Wrong Aadhaar number
- Name mismatch
- OTP not received
- Server issues with UIDAI
The Fix:
- Keep in mind that you have entered the same name that is mentioned on your Aadhar card.
- Check beforehand whether your mobile number is linked to Aadhaar or not.
- Wait and retry if the UIDAI server is down.
- If the OTP isn’t received, try again later or check for mobile network issues.
2. PAN Not Valid or Not Linked with Aadhaar
The Problem:
Starting July 1, 2020, PAN will be mandatory for Udyam registration. If the PAN is not linked with Aadhaar, the system may throw an error or fail to auto-fetch details from the income tax portal.
The Fix:
- Visit the Income Tax Portal and link your PAN with Aadhaar.
- Make sure your PAN is active and valid.
- Recheck the PAN number entered during registration.
3. Mismatch in Business Name or Type
The Problem:
Users often enter business names or types that don't match the PAN or GST records. Because of this, there is a delay in issuing the certificate.
The Fix:
- Whatever business name and type are mentioned in your official documents (PAN, GST, etc.), use them the same.
- Avoid adding extra characters or unnecessary words during the registration.
- If your business name has changed, update your PAN and GST records first.
4. Incorrect Selection of NIC Codes
The Problem:
NIC codes are used to classify the type of business activity. Many people either choose the wrong code or skip adding secondary activities, which can limit benefits.
The Fix:
- Use the NIC code list available during registration to select the most accurate code.
- If your business has multiple activities (e.g., manufacturing and services), include all relevant codes.
- Do not just guess—look up the correct industry category for accuracy.
5. Confusion Between Manufacturing and Service Activities
The Problem:
Many business owners are confused about which category their business falls under: manufacturing or service. This confusion can lead to incorrect classification.
The Fix:
- If you produce physical goods, you fall under manufacturing.
- If you provide support or professional services, it’s a service.
- If it is a mix, mention both, but ensure proper NIC codes are added.
6. Mobile Number Not Linked with Aadhaar
The Problem:
If your Aadhaar card is not linked to the mobile number, then you will not be able to complete the OTP verification process.
The Fix:
- Visit the Aadhar seva kendra in your area and update your mobile number and link it with your Aadhar card.
- It will take some time to update, so plan your Udyam registration process accordingly.
7. Unable to Download Udyam Certificate
The Problem:
Some users complete the registration but don’t receive the certificate via email, or they can’t download it from the portal.
The Fix:
- Visit the official Udyam portal and use the “Print Udyam certificate” section with your Udyam number and registered mobile number.
- If not received by email, check your spam/junk folder.
- If still not found, raise a grievance through the MSME helpdesk.
8. Website Technical Errors
The Problem:
Users sometimes face glitches like slow loading, form not submitting, or timeout errors while registering.
The Fix:
- Clear browser cache or try in incognito mode.
- Switch to a different browser (Chrome or Firefox works best).
- Avoid peak hours (early morning or late night are usually smooth).
- Always double-check your internet connection.
9. Duplicate Udyam Registration Attempt
The Problem:
Some businesses try to register again even though they already have a Udyam certificate, leading to an error saying "Udyam already exists."
The Fix:
- Only one registration is allowed per PAN.
- Use the “Verify Udyam Registration” option on the portal to check the existing status.
- If you’ve lost the number, recover it using your registered mobile.
10. Lack of Proper Guidance
The Problem:
Many small business owners have little knowledge about technical processes, so they make mistakes because of a lack of proper guidance and understanding.
The Fix:
- Read the instructions on the Udyam portal carefully.
- Refer to YouTube tutorials or articles (like this one) for step-by-step help.
You can also read this: How To Login in Udyam Portal.
- If unsure, consult with MSME consultants or professionals who specialize in Udyam registration.
Final Thoughts
Udyam registration has proved to be a powerful tool for small businesses as it opens the doors to many government schemes and subsidies. But since the process is new, it seems a bit challenging and frustrating. But the good news is that many of the problems can be solved easily. You just need a little awareness and the right approach. Always ensure that your documents are in your hand while registering, follow the correct steps, and double-check all entries before submitting.
