Udyam Registration Without Pan

On July 1, 2020, the Government of India launched a new and simplified online process for MSME Registration, called Udyam Registration.

This new system was introduced to make it easier for startups and small business owners to register their enterprises and enjoy various government benefits

As per the Ministry of MSME, all businesses that were previously registered under EM–Part II or Udyog Aadhar (UAM) must re-register on the Udyam Registration Portal from July 1, 2020 onwards.

Any business planning to set up as a Micro, Small, or Medium Enterprise (MSME) can apply for Udyam Registration online through the official Udyam portal.

The Udyam portal is a single-window, paperless platform, you don’t need to upload any documents, certificates, or proof.

Also, all existing MSMEs must re-register under Udyam before March 31, 2021, to continue receiving MSME benefits from the government.

Is PAN Mandatory for Udyam Registration?

Yes, as per the updated guidelines effective from April 1, 2021, PAN and GSTIN have been made mandatory for all enterprises registering under Udyam. This applies to proprietorships, partnerships, companies, LLPs, trusts, societies, and all other forms of enterprises.

Earlier Provision:

• Before April 2021, proprietorship firms could register using just an Aadhar number, on a self-declaration basis.
• PAN and GSTIN were not compulsory for small businesses in the early stages of registration.

Current Rule (Post-April 1, 2021):

PAN and GSTIN are now compulsory for new Udyam Registrations.

Existing businesses that were registered without a PAN must update their information on the Udyam portal using valid PAN and GST details.

What If You Don’t Have a PAN Yet?

If you are a proprietor or entrepreneur and don’t have a PAN yet:

1. Apply for a PAN through the Income Tax Department’s portal
2. Once your PAN is issued, proceed with your Udyam Registration

Similarly, if your business requires a GSTIN, you must apply for it through the GST Portal.

Why Do You Need a PAN for Udyam Registration?

PAN (Permanent Account Number) is important for Udyam Registration because:

• It helps the system connect your business details with your Income Tax and GST records.
• It ensures your business is correctly categorized based on how much you invest and earn.
• It allows the portal to check your details automatically, so there are fewer mistakes and faster approvals.

Benefits of Udyam Registration

There are many benefits for an organization to register under Udyam. The Government of India is focusing on the growth of small-medium enterprises. A few of the Udyam benefits are listed below.

1. Easy to get bank loans for business
2. Income tax rebates or tax refunds
3. Uplift your credit profile
4. Helps in getting other licenses, certifications, and approvals
5. Concession on electricity bills
6. Eligible to get government tenders
7. Reimbursement of ISO Certification
8. Qualified for International Trade Fairs
9. Entitled to various Government schemes
10. Eligible for Industrial Promotion Subsidy

Documents Needed for Udyam Registration

To register your business under Udyam, you’ll need a few important documents. Here’s a simple breakdown:

1. Aadhar Number

• Aadhar is mandatory for everyone applying for Udyam Registration.
• It should be in the name of the business owner or the authorized signatory.

2. PAN Card

• PAN is a must for businesses like Partnerships, Private Limited Companies, Public Limited Companies, LLPs, Societies, and OPCs.
• Only proprietorship firms (individual-owned businesses) can register without a PAN, but even they will need to update it later.

3. GSTIN (if applicable)

• If your business is required to have GST registration, you must provide your GSTIN number during the Udyam registration process.

4. Bank Details

• You also need to mention your business bank account details, including your account number and IFSC code.

Note:

Earlier, in the old Udyog Aadhar system, PAN and GST were not mandatory. But now, in the Udyam Registration process, Aadhar, PAN, and GST (if applicable) are required for a smooth and valid registration.

How to Register for Udyam Without a PAN Card (For Proprietorship Only)

If you’re a proprietor (running your business individually), you can still apply for Udyam Registration without a PAN card. Here's how:

Step 1: Visit the Udyam Registration Portal

• Go to the Udyam Registration website

Step 2: Click on "Udyam Registration for Proprietorship Firm"

• Only proprietorship firms are allowed to register without a PAN card.
• Click on the correct option to start your application.

Step 3: Fill Out the Form

• Carefully enter your business details, Aadhar number, name, mobile number, and other required info.
• Double-check for spelling mistakes certificate will be generated based on this info.

Step 4: Make the Payment

• Once the form is filled out, you’ll be asked to make a small processing fee payment online.

Step 5: Verification Call

• After your form is submitted, one of our executives will call you to confirm your details.

Step 6: Get Your Udyam Certificate

• After successful verification, you’ll receive your Udyam Certificate within 1–2 working hours on your registered email ID.

Note: Even if you register without PAN now, you’ll need to update your PAN details later to stay compliant with government rules.

If you need help, just fill out the Udyam enquiry form, and one of our team members will call you through the Udyam helpline number.

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