If you run a small business in India or plan to start one, getting Udyam Registration is a smart move. It helps you get government benefits like easier loans, subsidies, and participation in government tenders. But many people make small mistakes while registering, which can cause delays, rejections, or even legal trouble.
In this blog, we’ll explain the most common mistakes people make during Udyam Registration and how you can avoid them — all in simple, easy-to-understand language.
What is Udyam Registration?
Before we jump into the mistakes, here’s a quick reminder.
Udyam Registration is an online process launched by the Government of India for Micro, Small, and Medium Enterprises (MSMEs). It replaces the older Udyog Aadhaar system and is 100% paperless.
You get a unique Udyam Registration Number (URN) and an e-certificate, which proves that your business is officially recognized as an MSME.
As of 2025, more than 2.8 crore businesses have registered under Udyam, according to the Ministry of MSME.
Common Mistakes to Avoid
Let’s go through the mistakes one by one and learn how you can avoid them.
1. Wrong Aadhaar Number or Name
Many people enter incorrect Aadhaar numbers or names during registration. Since Aadhaar is mandatory for the owner or director, any mismatch can lead to rejection.
What to do:
- Double-check the spelling of your name as per Aadhaar.20Please respect copyright.ＰＥＮＡＮＡVxZ8q2GP5x
20Please respect copyright.ＰＥＮＡＮＡDGbZzJvrSy - Ensure the Aadhaar number is correct and active.20Please respect copyright.ＰＥＮＡＮＡ9FSNJHcniH
20Please respect copyright.ＰＥＮＡＮＡtpRbv8DDZB - Do not use someone else’s Aadhaar card.
2. Confusing Business Type
Many people are confused about whether their business is a proprietorship, partnership, or company. Choosing the wrong type can lead to problems in the future.
What to do:
- If you are the only owner, select Proprietorship.20Please respect copyright.ＰＥＮＡＮＡMwQ5ZDT8hv
20Please respect copyright.ＰＥＮＡＮＡogRyxGqVdO - If you have a registered firm, company, or LLP, select accordingly.
3. Using Wrong PAN Card
From April 1, 2021, having a PAN number is mandatory. But people often use their personal PAN for businesses that should use a company PAN, especially in case of private limited companies or LLPs.
What to do:
- Proprietors should use their personal PAN.20Please respect copyright.ＰＥＮＡＮＡ68fm79sHfF
20Please respect copyright.ＰＥＮＡＮＡMCCFgJREh1 - Other businesses must use the organization’s PAN.20Please respect copyright.ＰＥＮＡＮＡXUrdClExrH
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Important in 2025: Your PAN must be linked to Aadhaar, or the system may not allow you to continue.
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4. Wrong Investment or Turnover Details
The Udyam portal classifies your business as Micro, Small, or Medium based on your annual turnover and investment in plant and machinery or equipment.
Putting the wrong numbers can:
- Classify your business wrongly.20Please respect copyright.ＰＥＮＡＮＡNE1agcQ66B
20Please respect copyright.ＰＥＮＡＮＡhUruVzSECZ - Cause trouble during audits.20Please respect copyright.ＰＥＮＡＮＡkbbNtITrFM
20Please respect copyright.ＰＥＮＡＮＡUwmdSG3D0l - Lead to rejection of benefits.20Please respect copyright.ＰＥＮＡＮＡCbvw5mUq20
20Please respect copyright.ＰＥＮＡＮＡecZ4EAi4GT
What to do:
- Use actual data from your financial records or GST returns.20Please respect copyright.ＰＥＮＡＮＡsjpYbH7DFL
20Please respect copyright.ＰＥＮＡＮＡrdsFAqMbro - If you’re a startup or haven’t filed returns yet, provide estimated values — but be honest.20Please respect copyright.ＰＥＮＡＮＡ8Bx9p4uOLW
20Please respect copyright.ＰＥＮＡＮＡee7XFXQzy8
In 2025, the limits are:
- Micro: Investment ≤ ₹2.5 crore, Turnover ≤ ₹10 crore20Please respect copyright.ＰＥＮＡＮＡIPVVlj5TLN
20Please respect copyright.ＰＥＮＡＮＡcntbUfgvQt - Small: Investment ≤ ₹25 crore, Turnover ≤ ₹100 crore20Please respect copyright.ＰＥＮＡＮＡLLVorQIho1
20Please respect copyright.ＰＥＮＡＮＡuiFRhg7xaN - Medium: Investment ≤ ₹125 crore, Turnover ≤ ₹500 crore20Please respect copyright.ＰＥＮＡＮＡWo2s7WGfLS
20Please respect copyright.ＰＥＮＡＮＡjNiHRZwA9U
5. Incorrect NIC Code
NIC Code is a 5-digit code that tells the government what your business does (for example, clothing, IT services, food processing, etc.). Many people select the wrong NIC code or skip this step.
What to do:
- Check the official NIC code list on the Udyam website.20Please respect copyright.ＰＥＮＡＮＡyAY7NxDNCu
20Please respect copyright.ＰＥＮＡＮＡPHDheQbNbg - Choose the right code for your business.20Please respect copyright.ＰＥＮＡＮＡDHbxrVmsbU
20Please respect copyright.ＰＥＮＡＮＡFq1INarWvk - You can add up to 10 codes if you have multiple activities.20Please respect copyright.ＰＥＮＡＮＡ89nieobB1I
20Please respect copyright.ＰＥＮＡＮＡ4NmWh1aK7r
6. Fake or Inactive Mobile Number/Email
Some people use fake or inactive mobile numbers and email IDs just to register fast. But this becomes a big problem if you ever need to:
- Recover your certificate20Please respect copyright.ＰＥＮＡＮＡczyZne6nbu
20Please respect copyright.ＰＥＮＡＮＡ4taR69uXAW - Make updates20Please respect copyright.ＰＥＮＡＮＡGBJyqI61iX
20Please respect copyright.ＰＥＮＡＮＡziHQeGSoEN - Receive OTP for login20Please respect copyright.ＰＥＮＡＮＡiAopVPrhNt
20Please respect copyright.ＰＥＮＡＮＡvxw9X2ct5s
What to do:
- Use your own, working mobile number and email ID.20Please respect copyright.ＰＥＮＡＮＡSgDuuEM4Pj
20Please respect copyright.ＰＥＮＡＮＡQAPy7bElmy - Avoid using an agent’s contact details.
7. Registering Multiple Times
Each business is allowed only one Udyam Registration Number. But some people try to register the same business again, thinking it’s better — which is illegal.
What to do:
- Register only once per business.20Please respect copyright.ＰＥＮＡＮＡxMg99Rqf0T
20Please respect copyright.ＰＥＮＡＮＡRrjTU0mtIa - If you make a mistake, use the Update option, not a new registration.
8. Not Updating After Changes
After registration, if your business changes its name, address, turnover, or type — you must update your Udyam certificate. Not updating it can cause issues during audits or while applying for schemes.
What to do:
- Go to https://udyamregistrations.co.in/
- Log in using your URN and update the details.20Please respect copyright.ＰＥＮＡＮＡjv2IPdNkmP
20Please respect copyright.ＰＥＮＡＮＡ550UyG3sV3
9. Depending Entirely on Agents
Using a consultant is fine, but some people hand over everything to agents and don’t check anything. This can lead to incorrect details and even Aadhaar misuse.
What to do:
- Be involved in the process.20Please respect copyright.ＰＥＮＡＮＡL7MUNwhjVK
20Please respect copyright.ＰＥＮＡＮＡoNyICMk8pg - Check all details before submitting.20Please respect copyright.ＰＥＮＡＮＡFcoSGhYR7Y
20Please respect copyright.ＰＥＮＡＮＡc6O2JFeQ5u - Ask for a copy of your certificate after registration.
20Please respect copyright.ＰＥＮＡＮＡWRPCKM3z6j
Final Words
Udyam Registration is a powerful tool for small business owners in India. It gives you access to a world of benefits and support from the government. But simple mistakes can cause you delays, rejection, or even legal troubles.
By avoiding the common mistakes listed above, you can complete your Udyam Registration in 2025 easily, correctly, and with full peace of mind.
Quick Tips Recap:20Please respect copyright.ＰＥＮＡＮＡzfUainnMJV
- Use correct Aadhaar & PAN20Please respect copyright.ＰＥＮＡＮＡxXfI6lsULD
20Please respect copyright.ＰＥＮＡＮＡgsgMw2uN6C - Know your business type20Please respect copyright.ＰＥＮＡＮＡ6Q6FnEz0HI
20Please respect copyright.ＰＥＮＡＮＡ76NpqPcLS0 - Enter honest financial details20Please respect copyright.ＰＥＮＡＮＡVSmDYNyLJC
20Please respect copyright.ＰＥＮＡＮＡp8dc6YWSED - Use your real mobile & email20Please respect copyright.ＰＥＮＡＮＡGZFVMP64dy
20Please respect copyright.ＰＥＮＡＮＡl8BEMsl8qc - Don’t register more than once20Please respect copyright.ＰＥＮＡＮＡEXymyX6YkJ
20Please respect copyright.ＰＥＮＡＮＡtN0giAqsNm - Update your certificate if details change
20Please respect copyright.ＰＥＮＡＮＡOKNIYp9ZFx
Need help with Udyam Registration? You can reach out to trusted experts (like those at udyamregistrations.co.in/ for step-by-step assistance.
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20Please respect copyright.ＰＥＮＡＮＡZcnKgCkDwT
