Cancellation of Udyam Registration: For lakhs of MSMEs, Udyam registration since June 2020 has been the window to various schemes by the government offered to ease starting and doing business in India. Availing credit at lower interest rates, accessing government tenders, availing tax benefits, incubation, mentorship, and other support measures have been available for Udyam-registered small businesses post Covid. 

While 1.72 crore MSMEs so far have secured their Udyam license or certificate, there are a number of enterprises which have surrendered their certificates for various reasons. According to the data shared in the budget session in the Rajya Sabha by the minister of state in the MSME ministry Bhanu Pratap Singh Verma, as many as 73,576 MSMEs registered on the Udyam portal had cancelled their Udyam registrations as of March 29 this year since the launch of the portal on July 1, 2020.

Also read: 1.5 crore MSMEs on Udyam portal reflection of India’s economic self-reliance: MSME min Narayan Rane

Here are the steps to cancel or withdraw the Udyam registration:

  • Visit udyamregistration.gov.in and click on ‘Update/Cancel Udyam Registration’
  • Login to the portal with your Udyam number and mobile
  • Choose the OTP option on mobile/email to validate and generate OTP
  • Enter the OTP and click on ‘Validate’
  • Click on ‘Cancellation’ on the top right of the screen
  • Select the type of cancellation from the drop-down menu
  • The options available would be No Further Need, I Have Shut Down My Business, This is My Duplicate UAM, Company Owner Changed, Other
  • Enter your reason for cancellation to share more details
  • Click on ‘Cancel My Udyam’ below
  • The request for cancelling the certificate will be submitted
  • You will get the cancellation notification in one-two hour after the request is approved

Also read: Step-by-step guide: How to register your MSME on Udyam portal for free

Among MSMEs withdrawing their licenses, 11,621 licenses were cancelled because enterprises didn’t require it anymore while 19,520 licenses were withdrawn due to the closure of businesses. Further, 8,484 licenses were withdrawn due to the change of owner in the business, 2,679 were withdrawn due to duplicity and 31,272 were withdrawn for other reasons. 

Among states, Maharashtra registered 17,574 licenses withdrawn followed by Tamil Nadu (6,570 withdrawals), Uttar Pradesh (6,265 withdrawals), Gujarat (6,115 withdrawals), Rajasthan (5,260 withdrawals), and more. 

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