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.27Please respect copyright.ＰＥＮＡＮＡZHqHjA01Fk
27Please respect copyright.ＰＥＮＡＮＡyNC4g3UVTf - Ensure the Aadhaar number is correct and active.27Please respect copyright.ＰＥＮＡＮＡBprIX85l1w
27Please respect copyright.ＰＥＮＡＮＡDOfYA8iMqv - 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.27Please respect copyright.ＰＥＮＡＮＡlXTN5kWhXS
27Please respect copyright.ＰＥＮＡＮＡek34s9jJ2v - 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.27Please respect copyright.ＰＥＮＡＮＡtFGWlIzZAd
27Please respect copyright.ＰＥＮＡＮＡ55jLvav0mC - Other businesses must use the organization’s PAN.27Please respect copyright.ＰＥＮＡＮＡ8pDX5DfPAC
27Please respect copyright.ＰＥＮＡＮＡzGyitcl2AI
Important in 2025: Your PAN must be linked to Aadhaar, or the system may not allow you to continue.
27Please respect copyright.ＰＥＮＡＮＡ0T8xKIj848
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.27Please respect copyright.ＰＥＮＡＮＡ2RS5ZgUAx3
27Please respect copyright.ＰＥＮＡＮＡD9hCN3VUsR - Cause trouble during audits.27Please respect copyright.ＰＥＮＡＮＡ82tVawgRZt
27Please respect copyright.ＰＥＮＡＮＡG5yHwES0Bt - Lead to rejection of benefits.27Please respect copyright.ＰＥＮＡＮＡsDZqWZcbSK
27Please respect copyright.ＰＥＮＡＮＡrsWxzP42ux
What to do:
- Use actual data from your financial records or GST returns.27Please respect copyright.ＰＥＮＡＮＡm4OnNV7xsI
27Please respect copyright.ＰＥＮＡＮＡOuzyPDJ6j7 - If you’re a startup or haven’t filed returns yet, provide estimated values — but be honest.27Please respect copyright.ＰＥＮＡＮＡOquBeP9Sqo
27Please respect copyright.ＰＥＮＡＮＡ8swippdm7l
In 2025, the limits are:
- Micro: Investment ≤ ₹2.5 crore, Turnover ≤ ₹10 crore27Please respect copyright.ＰＥＮＡＮＡHn9kyVNIIG
27Please respect copyright.ＰＥＮＡＮＡseFMFmtCAp - Small: Investment ≤ ₹25 crore, Turnover ≤ ₹100 crore27Please respect copyright.ＰＥＮＡＮＡTQqSHpsBgM
27Please respect copyright.ＰＥＮＡＮＡOYa508IJdU - Medium: Investment ≤ ₹125 crore, Turnover ≤ ₹500 crore27Please respect copyright.ＰＥＮＡＮＡF4Ro7TPxVm
27Please respect copyright.ＰＥＮＡＮＡbheGJv8ER6
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.27Please respect copyright.ＰＥＮＡＮＡsbAN5SRdj5
27Please respect copyright.ＰＥＮＡＮＡYBSh6UxVhl - Choose the right code for your business.27Please respect copyright.ＰＥＮＡＮＡ0A2Yyx2mEg
27Please respect copyright.ＰＥＮＡＮＡGxjdXIG2QB - You can add up to 10 codes if you have multiple activities.27Please respect copyright.ＰＥＮＡＮＡ7dICAYFEi0
27Please respect copyright.ＰＥＮＡＮＡBiop1b9gTu
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 certificate27Please respect copyright.ＰＥＮＡＮＡ964jT74CSJ
27Please respect copyright.ＰＥＮＡＮＡO7theFDQX0 - Make updates27Please respect copyright.ＰＥＮＡＮＡwCExyLEazz
27Please respect copyright.ＰＥＮＡＮＡxQmryrFutv - Receive OTP for login27Please respect copyright.ＰＥＮＡＮＡMQPqBWxF9K
27Please respect copyright.ＰＥＮＡＮＡvhkG1QEoJU
What to do:
- Use your own, working mobile number and email ID.27Please respect copyright.ＰＥＮＡＮＡbuHlRxu7hY
27Please respect copyright.ＰＥＮＡＮＡxwLJYgtV5g - 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.27Please respect copyright.ＰＥＮＡＮＡ0Jc0zwGrwV
27Please respect copyright.ＰＥＮＡＮＡKwrAdPpEg2 - 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.27Please respect copyright.ＰＥＮＡＮＡBUq6mFN5E8
27Please respect copyright.ＰＥＮＡＮＡDzKifHIqzN
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.27Please respect copyright.ＰＥＮＡＮＡl1gJiwUGHS
27Please respect copyright.ＰＥＮＡＮＡ0fyasR3Mq2 - Check all details before submitting.27Please respect copyright.ＰＥＮＡＮＡqs7YNn4QkI
27Please respect copyright.ＰＥＮＡＮＡ6iJ5qbGFrX - Ask for a copy of your certificate after registration.
27Please respect copyright.ＰＥＮＡＮＡY3XJgOUYn3
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:27Please respect copyright.ＰＥＮＡＮＡULDDR55OGN
- Use correct Aadhaar & PAN27Please respect copyright.ＰＥＮＡＮＡEiPUkEbzw6
27Please respect copyright.ＰＥＮＡＮＡEyO8RhOumR - Know your business type27Please respect copyright.ＰＥＮＡＮＡFeTDfNNqzj
27Please respect copyright.ＰＥＮＡＮＡK8vTQLuhZN - Enter honest financial details27Please respect copyright.ＰＥＮＡＮＡvu5TjcIQLD
27Please respect copyright.ＰＥＮＡＮＡki426VLmJk - Use your real mobile & email27Please respect copyright.ＰＥＮＡＮＡcV8s9qyTVo
27Please respect copyright.ＰＥＮＡＮＡEYw0s3F1Tt - Don’t register more than once27Please respect copyright.ＰＥＮＡＮＡYUqtfY6O6q
27Please respect copyright.ＰＥＮＡＮＡBN2p1TboTD - Update your certificate if details change
27Please respect copyright.ＰＥＮＡＮＡl7z1aEEBBQ
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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27Please respect copyright.ＰＥＮＡＮＡWBNJB7JU5I
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