MSME Udyam Verification - Ensure Udyam Compliance for Onboarding MSMEs

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Verify your MSME

MSME Udyam Verification is a crucial process for organizations and financial institutions in India that engage with Micro, Small, and Medium Enterprises (MSMEs). Introduced by the Government of India, Udyam Registration is a simplified process for registering MSMEs, and its verification is essential to ensure compliance, mitigate risks, and establish fruitful business relationships.

SignalX provides a comprehensive MSME Udyam Verification solution that helps you stay compliant with government regulations, identify potential frauds during onboarding, streamline your risk mitigation process, and run thorough Udyam Verification checks on MSMEs.

With SignalX MSME Udyam Verification
Stay compliant with Government Regulations
Identify Frauds at the time of Onboarding
Streamline your Risk Mitigation process

Run Udyam Verification Checks on MSMEs

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What is MSME Udyam Verification?

Udyam verification is the process of validating the Udyam Registration of micro, small, and medium enterprises (MSMEs) in India. Verifying an MSME’s Udyam Registration before onboarding them is essential for companies as to avoid any fraud risk and compliance risks during the partnership.

Why is Udyam Verification important before onboarding MSMEs?

> Uncover Illegitimate Entities

MSME Udyam verification solution can help companies distinguish genuine MSMEs from fraudulent ones, thereby preventing potential scams and fraudulent activities during the onboarding process.

> Stay compliant with Laws and Regulations

By ensuring that the onboarding MSMEs are registered under the Udyam scheme, companies can ensure they are complying with Indian laws and regulations, thereby avoiding potential legal complications and penalties.

> Promoting Transparency and Compliance

Utilizing a MSME Udyam verification solution can assist companies in accurately identifying MSMEs and managing their responsibilities towards them. This aligns with the requirements of the Companies (Auditor’s Report) Order, 2020 (CARO 2020), promoting transparency and accountability in their dealings with MSMEs. By adhering to these reporting requirements, companies can enhance their reputation, build trust with investors and stakeholders, and contribute to a fairer business landscape for MSMEs.

> Reputation Risk Management

A company’s reputation can be protected by ensuring that they only partner with verified and compliant MSMEs. This helps avoid the reputational damage that could arise from associating with non-compliant or fraudulent MSMEs.

> Identify Potential Operational Risks

Through MSME Udyam verification, companies can gain insights into potential operational risks associated with the MSME, such as disruptions due to the sector or region the MSME operates in. This can inform the onboarding decisions and risk mitigation strategies.

> Make Informed Financial Decisions

The financial stability of an MSME can be assessed through Udyam verification. This crucial information can guide companies in making sound investment decisions and partnerships, reducing the risk of financial losses.

MSME Udyam Verification with SignalX

With SignalX MSME Udyam Verification platform you can easily verify the legitimacy of any MSME before signing off a deal with them. The MSME Udyam Verification will help you uncover numerous hidden information about a business and avoid fraud at the time of onboarding.

Get the below details on any MSME with the SignalX Udyam Verification
Udyam/Udyog number of the enterprise
A list of enterprise types and their classification details
Name of Enterprise
Major Activity
Social Category
Date of Commencement
Name of the District Industries Center (DIC)
State in which the enterprise is registered
Deatiled Address of the Enterprise(incl Flat number, Name of the Building, Road, Village, Block, City, PIN Code)
Mobile number of the enterprise's authorized representative
Email ID of the enterprise's authorized representative
Type of organization (proprietorship/partnership/private limited/public limited)
Location of Plant Details
Details of the National Industrial Classification (NIC) codes applicable to the enterprise
Date on which the application for Udyam registration was applied

Run Udyam Verification Checks on MSMEs

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Frequently Asked Questions

What is a 12 Digit Udyam Registration Number?

The Udyam Registration Number (URN) is a unique identification number assigned to every micro, small, and medium enterprise (MSME) that has registered under the Udyam Registration scheme in India. It is a 12-digit number that acts as a unique identity for the MSME and contains various details about the enterprise, such as its location, organization type, and year of registration.

How does Udyam Registration work?

New entrepreneurs can follow the below steps to get themselves registered under Udyam. 

  • Visit the Udyam Registration portal 
  • Click on the “For New Entrepreneurs who are not Registered yet as MSME” tab.
  • Enter your Aadhaar number and name as mentioned in the Aadhaar card. Click on the “Validate & Generate OTP” button.
  • Enter the OTP received on your Aadhaar registered mobile number and click on the “Validate” button.
  • Fill in the details such as name of the owner, PAN number, email ID, and mobile number.
  • Fill in the details of the business such as the name of the enterprise, type of organization, date of commencement, previous registration details, bank account details, and major activity of the enterprise.
  • Enter the district industry center (DIC) code and the number of employees working in the enterprise.
  • Confirm the details provided and submit the application.
  • On successful submission, an acknowledgment number will be generated, which can be used for future reference.
  • The Udyam registration certificate will be issued containing a unique Udyam registration number (URN) and other relevant details.

What is an Udyam Certificate?

The Udyam Certificate is an official certificate issued to every micro, small, and medium enterprise (MSME) registered under the Udyam Registration scheme in India. It contains the enterprise’s details such as name, location, organization type, date of commencement, and the Udyam Certificate Number

The Udyam Certificate Number is a unique identification number assigned to every MSME registered under the Udyam Registration scheme. It is a 16-digit number that contains the state code, PAN number, and an alphabetic character. The Udyam Certificate Number is mentioned on the Udyam Certificate and is crucial for availing various benefits under government schemes and policies.