Easy Steps to Cancel or Withdraw Udyam Registration

The MSMEs (Micro, Small and Medium Enterprises) are known to be the backbone of India's economic growth. They are one of the most important contributors to the growth and development of India's business sector. To promote the growth of the MSMEs, formalise the sector and provide support to these business enterprises, the government of India introduced a special initiative known as Udyam Registration.

It is an initiative that formally recognised small business enterprises as an MSME. To get the MSME status, the business owner must register their enterprise under the Udyam scheme and get the Udyam certificate. So, suppose you own a small business in India. In that case, you can register your establishment under Udyam through the Udyam portal, and once registered, you can access a wide array of benefits like government subsidies, tenders and contracts, and financial aid.

Also Read: Udyam Registration Certificate & Its Benefits

Although Udyam registration is important for all MSME owners and makes getting loans and other benefits easier, some MSMEs may want to cancel their Udyam registration for different reasons. It could be because of a change in the business structure, closure of business, or other administrative reasons.

No matter what your reason is to withdraw or cancel Udyam registration, you must know the cancellation process and follow it correctly.

Cancelling or withdrawing the Udyam Registration – Steps to follow

Cancelling the Udyam Aadhar registration process is quite simple, and you can do it online from the comfort of your home or office and at any time at your convenience. The government of India has ensured that both the Udyam registration and cancellation process for the MSMEs are streamlined and suit their evolving business needs.

Here are the steps you must follow to cancel Udyam registration.

• Step 1 – Visit the Udyam Portal

  First and foremost, visit the official Udyam registration portal or website and navigate to the ‘update/cancel Udyam registration' option.

  
  

• Step 2 – Login using your credentials

  Enter your Udyam registration number and mobile number to access your account.

  
  

• Step 3 – Verify with OTP

  You will receive an OTP (one-time password) on your phone or email when you enter your mobile number. Enter the OPT to verify your identity and proceed.

  
  

• Step 4 – Click on cancellation process

  Once you log into the portal successfully and access your account, navigate to the ‘cancellation' option, which you can find on the top right-hand corner of the dashboard.

  
  

• Step 5 – Choose the reason for cancellation

  The cancellation option will have a drop-down menu, and you must select the appropriate reason for cancelling/withdrawing your Udyam registration. The options may include ‘no longer required,' ‘business closure,' etc.

  
  

• Step 6 – Provide additional information

  Depending on the reason you choose for Udyam Aadhar cancellation, you may need to provide additional information in the text box. Here, it is important to note that the reason you provide must be concise yet thorough in explaining the circumstance.

  
  

• Step 7 – Submit the cancellation request

  Once you choose the reason and fill in the other details, make sure that you review the cancellation request carefully to ensure that all the details are correct. Click on the ‘cancel my Udyam registration' button and officially complete the cancellation request.

  
  

• Step 8 – Await the confirmation

  After you submit the request, the system will acknowledge your request immediately, and you will get a formal confirmation from the Udyam Portal authorities that the cancellation will take place within 1-2 hours, subject to approval of the request.

  
  

Documents required for cancelling or withdrawing Udyam registration

Just as you may need to submit certain documents to register your business as an MSME under Udyam, you may also need to submit a few important documents to cancel or withdraw your registration. These include:

• Copy of the Udyam Registration Certificate
• PAN card, Aadhaar Card of the proprietor and/or authorised signatory members
• The details of your bank account with MSME registration
• Other relevant documents supporting the reason for cancelling/withdrawing the Udyam registration. For example, merger agreements, closure documents, etc.
• Details of the GST registration (as applicable)
• ITR (Income Tax Returns) filed in the previous financial year
• A self-declaration letter stating the reason for cancellation. The letter must be duly signed by the concerned business owner/s and/or decision-makers

Important points to remember while cancelling or withdrawing Udyam Registration

• The Udyam registration cancellation time may vary based on the reason stated, the proofs you submit and the final approval. So, once you submit the cancellation request, be patient and avoid making multiple requests within a short span
  
• Before you submit your cancellation request on the Udyam Portal, make sure that you meet and complete all the financial obligations towards your business as well as comply with all the legal requirements relating to your MSME status
  
• Keep all the necessary documents (as listed above) required for cancellation handy before you start the online cancellation process
  
• Carefully consider the implications of cancelling your MSME registration on any of the ongoing schemes or the benefits you have availed

Conclusion

Getting your MSME registered under Udyam has several benefits. It opens the doors for you to access several government loans, subsidies and more. Also, it gives your business enterprise a legal identity. So, do your due diligence before cancelling the Udyam registration.

As an MSME owner, if you need any financial support beyond the government loan for growing your business, you can apply for a business loan with Udyog Plus, which is part of Aditya Birla Finance Limited and get a loan of up to Rs. 2 Lakh without the need for submitting any documents. Also, the competitive interest rates and extended tenure make repayment easy.

You can visit the Udyog Plus website to learn more about the business loan and apply online!