How To Cancel Udyam Registration Online?

Udyam registration is a new MSME method that has registered these MSME entities in the government-created process. The new process was introduced with the intention of simplifying the old registration process.

You want to cancel the certificate if you have given the wrong information during the registration process or for some other reason.

So don't worry, we'll guide you on Udyam Registration Cancellation today in this blog post and tell you the step-by-step process for doing it. Read the complete blog article for a better understanding.

What is Udyam Registration?

Udyam Registration is an online simplified model of registration that MSMEs make under the Ministry of MSME. It has substituted the previous regime called Udyog Aadhaar. According to the existing regulations, companies will be able to enter the official Udyam portal with the help of their Aadhaar and PAN numbers.

Who can apply to Udyam?

Enterprises are placed in the categories of MSME on the basis of:

• Micro Enterprise: Investment up to ₹2.5 crore and turnover up to ₹10 crore
• Small Enterprise: Investment up to ₹25 crore and turnover up to ₹100 crore
• Medium Enterprise: Investment up to ₹125 crore and turnover up to ₹500 crore

Requirements for Udyam Cancellation

Check the below requirements you should have before the online cancellation of your udyam registration.

• Udyam Registration Number.
• Registered mobile number and Email address (Which you have filed with your application)

Detailed Reasons to Cancel Udyam Registration

1. Business Closure

Permanent closing down of the business is the most common cause of cancellation. In case the enterprise has been closed because it made losses, due to adjustments in strategies, the owner has retired or it has been closed because of any other reason, it is not necessary to maintain the Udyam Registration alive. Keeping registration and remaining open can result in unwarranted compliance disclosure or fraudulent use of benefits.

2. Wrong Information

There are instances where a company might be registered through some wrong information, of wrong PAN, Aadhaar, turnover, or investment appreciation. In the other situation, a classification mistake (e.g., choosing Small) may occur. Provided that they cannot eliminate such errors with the use of the update option on the portal, it should be more viable to cancel the process and re-register it.

3. Duplicate Registrations

There is a possibility that some businesses may inadvertently register themselves multiple times, using different names, partners, or a combination of Aadhaar and PAN. It is not permitted to have more than one Udyam Registration Number of the same business, and this can lead to disapproved benefits. The second or inaccurate registration has to be cancelled in this case.

4. Business Structural Change

A new registration is required when a business transforms from a sole proprietorship to a partnership or when a partnership changes its status from an enterprise to a private limited company. The previous Udyam Registration, based on the prior legal framework, will become inadmissible and needs to be cancelled.

5. Voluntary Exit in case of MSME Scheme

A business can decline to be a part of MSME voluntarily either because it does not wish to utilise the subsidies or because it exceeds the size of MSMEs. Whenever large enterprises no longer fit the description, they could forfeit their registration to prevent regulatory messes.

These are enough reasons to make the government MSME database accurate and secure, and to avoid benefit abuse.

Udyam Registration Online Cancellation Process

Complete your udyam registration cancellation by following these simple and easy steps:

Step 1: To cancel udyam registration, visit our website first.

Step 2: Fill in all information such as your 16-digit Udyam Registration Number (URN), and registered email address, and at the time of registration, it must be included in the application.

Step 3: Now choose the OTP option where you want to receive an OTP, i.e. you want to receive an OTP with your cell phone number or email To further process your submission, you have to provide our representative with the OTP address.

Step 4: Make the payment online for your application.

Step 5: You will receive the cancellation message at your registered email address within 1-2 hours.

Note: To further process your submission, you have to provide our representative with the OTP.

Consequences of Cancelling Udyam Registration

Before proceeding, it's important to understand the implications:

Loss of Benefits

• No more access to MSME loan schemes
• Ineligibility for government tenders reserved for MSMEs
• Loss of tax benefits or subsidies
• No priority in payment protection under MSME Act

GST and Tax Impact

While Udyam Registration and GST are separate, cancellation may indicate business closure, affecting:

• GST registration status
• IT returns and audit requirements

Make sure other compliance obligations are also addressed (e.g., Income Tax, ROC, Shops Act, etc.)

When Cancellation Is Not Needed

You may not need to cancel Udyam Registration in the following cases:

1. Minor Business Changes: Change of address, product, or partners You can simply update your Udyam details online.
2. Temporary Inactivity: If your business is temporarily non-operational but may resume later, cancellation is not advised.
3. Size Upgradation (e.g., small to medium): Udyam Registration auto-updates classification based on your ITR and GST returns. No need for manual cancellation.

Common Issues Faced During Cancellation

Udyam Cancelling FAQs

1. Will I be allowed to cancel my Udyam Registration myself online?

No. Self-cancellation is also not facilitated in the portal as of yet. You have to make a request either through email or the grievance redressal system.

2. How long does it take to cancel?

It takes, on average, 7 to 15 business days unless a document is complete and the case is complicated.

3. Can we re-register after cancelling?

It is possible that you can reregister under PAN and Aadhaar if the business operates in the future.

4. Does it have a cancellation fee?

No, it is absolutely free of charge when it happens through the official channels directly.

5. What are the implications of using Udyam benefits after closure?

Violations after the closure could attract legal action, audit or blacklisting by misusing government schemes.

Also Read - update udyam registration certificate

Who are we?

We are a private consulting company doing Udyog Aadhaar/ Udyam/ MSME's registration, updating, cancellation, and editing service work. We support small-scale medium business people if they face any registration service and we are always available for them when they need us.

If you have any questions about the Udyam registration certificate, please do not hesitate to contact us at https://udyamregisteration.org and the solution will be answered soon. If you would like to re-register at the MSME Ministry Udyam Portal, as you know that the registration process will be called Udyam Registration, please visit the following page.

Hoping you've learned the Udyam registration cancellation process and what the required documents are.

If you have any questions related to the Udyam registration certificate, just contact us at udyamregisteration.org and the solution will be answered shortly.

If you have any questions about the Udyam certificate of registration, please do not hesitate to contact us at udyamregisteration.org and the solution will be answered soon.

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If you face any problem regarding the cancellation of udyam registration then feel free to reach us at udyamregisteration.org and we will contact you soon.