Application form for Cancellation of udyam registration

Udyam Registration is a Government-supported program that helps Indian Micro, Small, and Medium Enterprises (MSMEs) formalize their existence and receive a wide range of benefits as subsidies, bank loans, and support for government tenders. Nevertheless, not all businesses are constantly required and eligible for this registration. Events like closure of business, growth above the financial limits of MSME, restructuring, or even errors during registration may necessitate cancellation of Udyam registration online.

By cancelling your Udyam registration, you guarantee that the government has an up-to-date and correct record and will save you legal or compliance problems that can occur as a result of holding old or inaccurate data in your registration. Fortunately, the government has simplified the procedure of cancellation and made it available online

In this guide, we shall take you through the whole procedure of how to cancel Udyam registration online, the documentation needed, why one would want to cancel, and what would follow the termination. It will aim at enabling you to go through the process with ease and also have your business records up to date and in compliance at all times.

a. Your business has reached outside the MSME boundaries

Udyam registration is for Micro, Small, and Medium Enterprises (MSMEs) that have a particular investment and turnover limit. When your business has surpassed these limits, your business enterprise ceases to be an MSME and no longer enjoys the benefits related to it. The claim of the same may cause legal issues, and the cancellation would be the appropriate move.

b. Business closure

In case of a permanent closure of business, there is no necessity to have an active Udyam registration. Removal of the registration will make sure that your information is not stored in the databases kept by the government regarding a company that is not operational.

c. Registration errors or non-originalities

Multiple registrations or wrong information are frequent cases when businesses make mistakes and register twice. There is no need to run around trying to correct several entries into a record, just cancel udyam registration online and make a fresh application with the proper details.

d. Change of ownership or type of business

The registration of the business can be rendered invalid when a business alters its legal form, i.e., shifting from a sole proprietorship to a partnership or a private limited company. In the given instance, new registration according to the new entity is suggested.

Documents Required Before You Cancel Udyam Registration Online

To complete the cancellation process smoothly, you’ll need the following:

• Udyam Registration Number (URN): This is a 19-digit alphanumeric code issued at the time of registration.
• Registered mobile number and email ID: Used for OTP-based verification.
• Reason for cancellation: You'll need to specify why you're cancelling—e.g., "Business closed" or "Duplicate registration".
• Basic business details: These may include your company name, PAN, and Aadhaar details, depending on the cancellation process flow.

Having these details readily available ensures the process is completed without delays or rejections.

Registering under Udyam offers several benefits to businesses:

Government Recognition: Official status as an MSME.

• Financial Benefits: Easier access to loans, subsidies, and schemes.
• Tax Benefits: Various exemptions under Income Tax and GST.
• Tenders & Contracts: Preference in government tenders.
• Ease of Business: Simplifies regulatory compliance.
• Market Opportunities: Opportunities for government and corporate tie-ups.

Let’s walk through each step in detail:

Step 1: Go to the portal for cancellation

Initially, you can enter the official cancellation page. This page is customized to help users go through the process.

Step 2: Complete the cancellation form

You will be requested to submit your URN, name of the business, mobile number, email ID, as well as the reason for the cancellation. Ensure that they are the same as what was indicated during registration.

Step 3: OTP verification

An OTP will be sent to your registered mobile number or email. It plays a key role when it comes to the verification of the identity of the person, and it acts as a security measure so that no one can make alterations to the registration.

Step 4: Check and send

After the NIC has confirmed the OTP, revise your details, then send the form. There might be a minimal fee at some third-party websites; otherwise most of the time you can get cancellation via the official Udyam website.

Step 5: Be confirmed

Providing all information is correct and the system could identify you, a confirmation of your cancellation is issued, which is normally after an hour or two. Keep this confirmation as documentation.

The cancellation process is generally fast if done online. Here’s what to expect:

• Online via the portal: 1–2 hours in most cases
• Through district MSME offices: 3–7 business days, depending on processing queue and documentation

Using a direct, web-based method is highly recommended for faster service.

This can vary depending on how you initiate the process:

• Government portal: Free of charge for all users.
• Third-party consultants: They may charge a nominal fee (e.g., 1499-/) for support, faster processing, and documentation assistance.

How to fill the “Application Form for Cancellation of Udyam Registration”,

Application Form Fields Breakdown

1. Applicant Name

   • Enter your full name exactly as it appears on your Aadhaar card

2. Mobile Number

   • Enter the 10-digit mobile number that was registered during your Udyam application.
   • Do not include “+91” or any country code.

3. Email ID

   • Provide the same email address used in the Udyam registration process.

4. Udyam/UAM Number

   • Enter your 19-digit Udyam Registration Number (URN) exactly as printed on your certificate.

5. Business Name

   • Type the official name of your business as it appears on your Udyam certificate.

6. State & District

   • Select the state and district where the business was registered.

See whether you are eligible: Ensure that you are required to cancel. You may not need to cancel unless you just want to change or amend your information.

• Provide the right contact information: Having the wrong mobile number and email may result in OTP failure.
• Screenshot your URN and confirmation: Keep a backup of the records.
• Technical issues: Technical issues can be solved by contacting the support team on udyamregisteration.org.
• Silence fraud of third parties: Never use dubious websites and services. It is not good to pay an upfront fee without going to a verified platform.

Q: Can I reapply after cancellation?

A: Yes. Once cancelled, you are free to apply again with the correct or updated business structure.

Q: Can I cancel my registration without OTP?

A: No. OTP verification is mandatory to prevent unauthorized access and ensure secure processing.

Q: Is physical presence needed?

A: No. The process can be completed entirely online. Physical verification is not required in most cases.

Q: What if I don’t remember my URN?

A: You can retrieve it by visiting the Udyam portal and using the "Forgot URN" feature.

Q: Will cancellation remove my data completely?

A: Your data will be marked inactive, but it's not always permanently deleted from government records.

Canceling Udyam registration online is not a decision that is to be taken easily. Although it is quick and simple, you will forego numerous advantages of being a recognized MSME. But in case your business has been challenged seriously, it is perhaps the most appropriate move.

It is always important that you maintain your URN and corresponding records in case you need them, and also re-register. In any case of confusion, the process can easily and effectively be clarified by professional advisors and the udyamregistration.org portal.