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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.10Please respect copyright.ＰＥＮＡＮＡlfzFaxdL0s
- Ensure the Aadhaar number is correct and active.10Please respect copyright.ＰＥＮＡＮＡ5d27D6HTSg
- 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.10Please respect copyright.ＰＥＮＡＮＡVsZIHbhEOh
- 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.10Please respect copyright.ＰＥＮＡＮＡYUwGX7GGPV
- Other businesses must use the organization’s PAN.10Please respect copyright.ＰＥＮＡＮＡORV9d5I0uZ
Important in 2025: Your PAN must be linked to Aadhaar, or the system may not allow you to continue.10Please respect copyright.ＰＥＮＡＮＡSLrMHILrnw
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.10Please respect copyright.ＰＥＮＡＮＡCNaXzWxsk1
- Cause trouble during audits.10Please respect copyright.ＰＥＮＡＮＡmR8rZ2RNwQ
- Lead to rejection of benefits.10Please respect copyright.ＰＥＮＡＮＡn7WQhah7D6
What to do:
- Use actual data from your financial records or GST returns.10Please respect copyright.ＰＥＮＡＮＡQrJV37BUyN
- If you’re a startup or haven’t filed returns yet, provide estimated values — but be honest.10Please respect copyright.ＰＥＮＡＮＡy31g9EIYGc
In 2025, the limits are:
- Micro: Investment ≤ ₹2.5 crore, Turnover ≤ ₹10 crore10Please respect copyright.ＰＥＮＡＮＡbNxM267QLE
- Small: Investment ≤ ₹25 crore, Turnover ≤ ₹100 crore10Please respect copyright.ＰＥＮＡＮＡn6NAl7mzfv
- Medium: Investment ≤ ₹125 crore, Turnover ≤ ₹500 crore10Please respect copyright.ＰＥＮＡＮＡIoAU4CpGNN
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.10Please respect copyright.ＰＥＮＡＮＡeCI5u6Auli
- Choose the right code for your business.10Please respect copyright.ＰＥＮＡＮＡgIifXB71eI
- You can add up to 10 codes if you have multiple activities.10Please respect copyright.ＰＥＮＡＮＡBYDF4tSmmG
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 certificate10Please respect copyright.ＰＥＮＡＮＡSqOyBLEEor
- Make updates10Please respect copyright.ＰＥＮＡＮＡPRTUDMD8XB
- Receive OTP for login10Please respect copyright.ＰＥＮＡＮＡ6WIJAyK1rL
What to do:
- Use your own, working mobile number and email ID.10Please respect copyright.ＰＥＮＡＮＡaZaXhCjSKJ
- 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.10Please respect copyright.ＰＥＮＡＮＡbJdcOKLKy4
- 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.10Please respect copyright.ＰＥＮＡＮＡEKQUDps5b8
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.10Please respect copyright.ＰＥＮＡＮＡTTUaBj1lOk
- Check all details before submitting.10Please respect copyright.ＰＥＮＡＮＡniVTB864x3
- Ask for a copy of your certificate after registration.
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:10Please respect copyright.ＰＥＮＡＮＡs3RgeUFVRt
- Use correct Aadhaar & PAN10Please respect copyright.ＰＥＮＡＮＡ9GjBjmUvN8
- Know your business type10Please respect copyright.ＰＥＮＡＮＡjqpRI9HHvu
- Enter honest financial details10Please respect copyright.ＰＥＮＡＮＡr3rx0R8Bi9
- Use your real mobile & email10Please respect copyright.ＰＥＮＡＮＡ8tw8I1hD5z
- Don’t register more than once10Please respect copyright.ＰＥＮＡＮＡ7G4xqjmo17
- Update your certificate if details change
Need help with Udyam Registration? You can reach out to trusted experts (like those at udyamregistrations.co.in/ for step-by-step assistance.
10Please respect copyright.ＰＥＮＡＮＡ8X95dmbs1I
10Please respect copyright.ＰＥＮＡＮＡ6ReEwJkqVV
