THE ROLE OF UDYAM REGISTRATION IN GOVERNMENT TENDERS

The Role of Udyam Registration in Government Tenders

The Role of Udyam Registration in Government Tenders

Blog Article

In India’s evolving economy, the government has placed a strong emphasis on supporting Micro, Small, and Medium Enterprises (MSMEs). One of the most powerful initiatives in this direction is the Udyam Registration, which not only provides official recognition to MSMEs but also plays a vital role in enabling their participation in government tenders. Whether you’re a startup, small manufacturer, or service provider, Udyam Registration can open doors to government procurement opportunities that were previously difficult to access.

Understanding Udyam Registration


What is Udyam Registration?


Udyam Registration is a government-recognized certification process for MSMEs, introduced by the Ministry of Micro, Small and Medium Enterprises in July 2020. It replaced the earlier Udyog Aadhaar system and introduced a fully online, simplified process. Businesses receive a unique 16-digit Udyam Registration Number (URN) and a government-issued certificate that verifies their MSME status.

Who Can Apply?



  • Micro Enterprise: Businesses with an investment of up to ₹2.5 crore and an annual turnover not exceeding ₹10 crore.


 

  • Small Enterprise: Enterprises with an investment of up to ₹25 crore and an annual turnover of up to ₹100 crore.


 

  • Medium Enterprise: Units having an investment limit of up to ₹125 crore and an annual turnover not exceeding ₹500 crore.


Government Tenders: An Opportunity for MSMEs


What Are Government Tenders?


Government tenders are contracts or procurement notices issued by various government departments and public sector units (PSUs) to buy goods and services. These tenders often have huge budgets and are considered a stable and secure business opportunity. Each year, the Indian government procures billions of rupees worth of goods and services from private businesses—and a significant portion is reserved for MSMEs.

How Udyam Registration Helps in Government Tenders


Udyam Registration is not just a certificate—it acts as a gateway to government procurement advantages. Here's how:

1. Reserved Quotas for MSMEs


The Public Procurement Policy for MSEs mandates that 25% of total annual government purchases be made from registered MSMEs. Out of this, 4% is reserved for SC/ST entrepreneurs, and 3% for women-owned businesses.

To avail of this benefit, your business must be registered under Udyam.

2. Exemption from EMD (Earnest Money Deposit)


Most government tenders require businesses to submit an EMD as a financial guarantee. MSMEs with Udyam Registration are exempted from paying EMD, making it easier and more affordable to participate in tenders.

3. Free Tender Access via GeM and CPPP


Udyam-registered businesses can easily register on platforms like:

  • GeM (Government e-Marketplace)


  • CPPP (Central Public Procurement Portal)


These platforms host thousands of active tenders. Udyam Registration simplifies the application process and ensures eligibility for MSME-specific bids.

4. Price Preference in Bidding


Some tenders provide a price preference margin (usually up to 15%) for MSMEs. This gives registered businesses an edge even if their quoted price is slightly higher than larger competitors.

5. Easier Access to Subsidies and Schemes


With Udyam Registration, MSMEs can access multiple schemes related to:

  • Credit guarantees

  • Technology upgrades

  • Quality certifications

  • Skill development


These schemes improve the capacity of small businesses to compete and deliver on large-scale tenders.

Udyam Registration Process – Simplified Guide


Step 1: Access the Udyam Registration Portal


Visit the official portal opening your browser and going to udyam registrationPortal .

Step 2: Enter Your Business Information


Fill in key details such as the business name, type of organization, location, contact details, and bank account number. Be careful to input the correct data.

Step 3: Confirm and Submit the Application


Once all information is filled, review the form thoroughly to ensure accuracy. Submit the application after verifying the details.

Step 4: Complete the Payment


Proceed to pay the registration fee through your preferred payment method. Make sure the transaction is successful.

Step 5: Verify with OTP


An OTP will be sent to your Aadhaar-linked mobile number. This step is essential for verifying the applicant’s identity.

Step 6: Enter the OTP


Input the received OTP on the portal to proceed with authentication.

Step 7: Final Submission and Approval


After successful OTP verification, your registration request will be processed. Once approved, the system finalizes your registration.

Step 8: Receive and Download Udyam Certificate


The digitally signed Udyam Registration Certificate will be emailed to you. You can also download it directly from the portal for record-keeping and official use.

Note: Print Udyam Certificate through the Udyam portal

Conclusion


If you aim to expand your business, enhance credibility, and tap into government procurement, Udyam Registration is the first step. It is more than a compliance requirement—it’s a strategic tool that levels the playing field for small and medium enterprises. By registering under Udyam, you not only gain recognition as an MSME but also unlock a world of opportunities through government tenders, subsidies, and incentives.

 

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