Common Mistakes Entrepreneurs Make During Udyam Registration

Introduction

India's Micro, Small, and Medium Enterprises (MSME) industry is the country's economic backbone. The government-led Udyam Registration program has made it possible to formally recognize and bestow upon such enterprises a list of government benefits. Although there are quite a few entrepreneurs who make some common mistakes during the registration process, which later lead to problems and delays.
In this blog, we shall examine in detail the mistakes committed by entrepreneurs during Udyam registration and how to avoid them.

1. Entering Wrong Aadhaar Card Information

The most important document for enterprise registration is the Aadhaar card. Many times, when applicants register their business in the Udyam Registration portal, instead of entering the correct details, which are mentioned in their Aadhar card, they misspell their name or Aadhar number.
These mistakes will lead to rejection of the application or delay in further verification.

How can you avoid this?

• Before applying, check all the details of your Aadhaar card.
• When registering, enter the same name and Aadhaar number that are mentioned on your Aadhaar card

2. Providing Wrong or Wrongful Business Information

The majority of entrepreneurs do not correctly state the name, nature, or business type. For example, one may be engaged in manufacturing but write "service" wrong. Such a mistake leads to misclassification, which may lead to problems in availing benefits or schemes.

How can you avoid this?

• Make clear the type of your business (manufacturing or service).
• If the business is both, mention both.
• Do not hesitate to choose the correct option while providing information.

3. PAN Card Mistakes or Delay in Update

PAN card information must be mapped with Aadhaar for business registration. But the majority of entrepreneurs input old or incorrect PAN numbers. Sometimes a PAN card is not in the company's name, which freezes the process.

How can you avoid this?

• Make sure the PAN card is Aadhaar-linked before registration.
• In the case of a private limited company or a partnership firm, apply with the firm's PAN card.
• Do not use a personal PAN if the company is registered in some other name.

4. Incorrect Mobile Number or Email ID

Sometimes an incorrect mobile number or email address is entered while applying. This can cause not receiving the OTP or not sending the certificate via email.

How can you avoid this?

• Verify your email address and mobile number before applying.
• Always enter an active mobile number and email address.

5. Not Updating the Old UAM Number

UAM holders must migrate to the new Udyam Registration. But the majority of people are not migrating or are migrating in the wrong direction. It can result in loss of their original data and government benefits.

How can you avoid this :

• If you have an older UAM number, select the "Udyam Re-registration" option on the Udyam portal to migrate it.
• Have your old UAM number and Aadhaar handy.
• This will secure your MSME records and keep them updated.

6. Providing Wrong Investment and Turnover Details

The Udyam Registration requires details of your investment and turnover annually. Some entrepreneurs input estimated amounts, resulting in wrong classification (micro, small, or medium).

How can you avoid this?

• Insert only the actual data of your business.
• Insert the figures according to your bank statement or balance sheet.
• Providing incorrect information may result in the cancellation of registration later on.

7. Filling Multiple Applications

Some business owners think that if their application is rejected, then they can simply make another one. This can, however, result in generating duplicate Udyam numbers, which is illegal under the law.

How can you avoid this?

• Register one Udyam for the same business.
• If there is an error, rectify it by utilizing the "Update Udyam Details" option.
• Accepting two or more applications could lead to discrepancies in government records.

8. Not Verifying After Registration

Most entrepreneurs fail to download or verify their certificate upon successful registration. Without verification, the certificate normally comes out incomplete.

How can you avoid this?

• After registration, save the PDF file and download the certificate.
• Check it by logging into the Udyam portal with the certificate number.
• This will be needed in case of subsequent loans, subsidies, or tenders.

9. Not Taking Professional Assistance

Many entrepreneurs assume they can complete the registration themselves. But sometimes, technical problems or data entry errors can lead to major issues later.

How can you avoid this?

• If it's your first time, get professional help or assistance from an approved agency.
• This will be time-saving, effort-free, and free from risks of errors.

Conclusion

Udyam registration is an easy and online procedure, but small mistakes can make it difficult. The right information, correct documents, and careful completion of the registration can guide you. This allows businesses to receive official recognition from the government, access to various government schemes, and financial assistance.
If you want to get your business’s Udyam registration done without any hassle, then fill in all the details asked in the Udyam Registration form carefully, and always register on any authentic and trustworthy website.
A proper Udyam registration opens up many new avenues and opportunities for your business