Starting a business is exciting, but there’s one common mistake many Indian entrepreneurs make—especially when they register their business on the Udyam Portal. While the portal is a valuable government tool for MSMEs, many business owners use it incorrectly, leading to delays, errors, and lost opportunities.
In this blog, we’ll uncover the big mistake most entrepreneurs make while using the Udyam Registration Online Portal, and how you can avoid it. If you’re looking for information on MSME registration, udyam registration online in India, or udyam aadhar registration, this blog will save you time, money, and effort.
Let’s dive in.
What Is the Udyam Portal?
Before we talk about the mistake, let’s quickly understand the Udyam Portal.
Launched by the Government of India, this portal helps Micro, Small, and Medium Enterprises (MSMEs) get recognized officially. Once you register, you receive a Udyam Certificate, which allows your business to access:
- Subsidies,
- Government schemes,
- Tender participation,
- Easier bank services,
- And more.
The process is completely online, and it’s free on the official government site.
Still, many users make one major error.
The Big Mistake: Using the Udyam Portal Without Understanding the Requirements
Yes, the #1 mistake entrepreneurs make is:
They start the registration without understanding the eligibility, document requirements, and the right information to enter.
This results in:
- Rejected or invalid applications
- Mismatched data with GST or PAN
- Wrong business classification (Micro/Small/Medium)
- Missing out on benefits
Let’s break this down further.
1. Incorrect Business Details Submitted
Many users enter wrong or incomplete data while filling out the Udyam form. Here’s what often goes wrong:
- Spelling mistakes in the business name
- Incorrect NIC codes (National Industrial Classification)
- Mismatch between PAN and Aadhaar
- Using someone else’s Aadhaar or PAN
Since Udyam Portal is connected with the Income Tax and GST database, any error creates problems in verification.
✅ Tip: Double-check business name, PAN number, and Aadhaar details before submitting.
2. Choosing Wrong NIC Code
The NIC code is used to describe the business activity you do. Many people randomly select a code without knowing what it means.
Result? You may end up:
- Misclassifying your business
- Getting rejected from MSME schemes
- Being unable to apply for government tenders
✅ Tip: Use the NIC Code list available on the portal or seek help from reliable platforms like udyamregisteration.org to pick the correct category.
3. Not Updating the Certificate When Business Grows
Another big mistake is that many entrepreneurs don’t update their Udyam certificate when there is a:
- Change in turnover
- Addition of new business activities
- Change in address or ownership
Remember, your business category (Micro/Small/Medium) is based on turnover and investment, and is updated automatically from GST data.
But in some cases, manual updates are necessary.
✅ Tip: Log in once every 6–12 months to check and update details if needed.
4. Registering Multiple Times for the Same Business
Some entrepreneurs mistakenly apply for multiple Udyam registrations for the same business. This creates confusion and can lead to:
- Cancellation of all entries
- Disqualification from MSME schemes
The Government clearly states:
“Only one Udyam Registration is allowed per business.”
✅ Tip: If you already have a certificate, just update it instead of applying again.
5. Relying on Untrusted Agents or Fake Websites
Many people search for “udyam registration online in India” and end up on fake or unofficial websites. These sites:
- Charge high fees
- Misuse your Aadhaar or PAN details
- May not even complete your registration
To avoid this, either use the official government portal or go through support-based service providers like udyamregisteration.org, whose core purpose is to assist entrepreneurs and MSMEs with the correct application process.
6. Skipping the Certificate Download
After successful registration, many users forget to download or save the certificate. Later, when they need it for:
- Bank documentation
- Government tenders
- Applying for subsidies
They can’t find it and waste valuable time trying to retrieve it again.
✅ Tip: Save both a PDF and printed copy of the Udyam Registration Certificate. It contains your Udyam Registration Number (URN), which is your business ID.
How to Avoid This Mistake: A Quick Step-by-Step Guide
Here’s a simple guide to help you register correctly and avoid the mistake most others make:
- Collect Necessary Info
- Aadhaar (for individuals)
- PAN (mandatory for all businesses)
- GST number (if applicable)
- Business name and address
- Valid mobile number linked to Aadhaar
- Visit the Right Portal
Use either the official government Udyam Portal or trusted third-party help providers like udyamregisteration.org. - Select Accurate NIC Codes
Choose the correct business activity classification. Don’t guess! - Submit Application
Fill in the details carefully. Ensure everything matches government records. - Download Your Certificate
Save your Udyam Registration Certificate safely.
Conclusion: Take Control of Your Udyam Registration
Thousands of businesses make this simple mistake—they rush through the Udyam Portal process without knowing how it works.
This one error can cost you access to benefits, time, and trust.
So be smart.
📌 Understand what’s needed.
📌 Use reliable guidance like that from udyamregisteration.org.
📌 Keep your details updated.
📌 Never apply multiple times.
Udyam Registration is not just a formality—it’s your business’s gateway to recognition, growth, and government support.
Frequently Asked Questions (FAQs)
Q1: Can I update my Udyam certificate after registration?
Yes, you can update details like address, NIC codes, and contact information through the portal.
Q2: How do I know if my Udyam registration is successful?
You will receive a confirmation message and your Udyam Certificate with a unique Udyam Registration Number (URN).
Q3: Is there any renewal required for Udyam?
No, but your details must stay up to date. The portal auto-syncs with GST and Income Tax data.
