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?



  • If your business invests up to ₹2.5 crore and earns less than ₹10 crore annually, you're classified as a Micro Enterprise.


  • If you've invested up to ₹25 crore and your turnover is under ₹100 crore, you're considered a Small Enterprise.


  • And if your investment is up to ₹125 crore with a turnover of ₹500 crore or less, you fall under the Medium Enterprise category.


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.

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.

How to Use Udyam Registration for Tender Participation


1. Open the Udyam Registration Portal


Launch your web browser and go to the official Udyam Registration site: udyamregistration.gov.in.

2. Fill in Your Business Details


Provide all the necessary information such as your business name, type of entity, official address, and bank account details. Make sure every detail is correct and up to date.

3. Verify and Submit the Form


Carefully review all the entered information. Once you’re confident it’s accurate, submit the registration form for processing.

4. Make the Payment


Choose a suitable payment option and complete the registration fee transaction as directed.

5. Get OTP on Your Mobile


A one-time password (OTP) will be sent to the mobile number linked to your Aadhaar. This is required to confirm your identity.

6. Enter the OTP to Authenticate


Input the OTP received on your phone into the portal to complete the verification step.

7. Finalize Your Registration


After successful verification, your Udyam application will be processed, and registration will be officially completed.

8. Receive Your Certificate


Your Udyam Registration Certificate will be generated and delivered directly to your registered email address. You can download and use it as needed for government schemes, tenders, or business compliance.

 

Note: Now you can easily 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.

 

Report this page