Paragraph 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraph 2 of S.O. 2119(E) is the gateway to Udyam. It says a person who intends to establish an enterprise may file Udyam Registration online, on self-declaration and without uploading documents, and that on registration the enterprise gets a permanent Udyam Registration Number and an e-certificate.
Paragraph 2 has three sub-paragraphs. (1) Registration is filed online on the Udyam Registration portal, on self-declaration, with no requirement to upload documents, papers, certificates or proof. (2) The enterprise is assigned a permanent identity number, the Udyam Registration Number. (3) An e-certificate, the Udyam Registration Certificate, is issued when the process is complete.
The three sub-paragraphs at a glance
| Sub-para | What it says | Key words |
|---|---|---|
| 2(1) | Who may file, where and how | "Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration" |
| 2(2) | The number | "permanent identity number to be known as 'Udyam Registration Number'" |
| 2(3) | The certificate | "An e-certificate, namely, 'Udyam Registration Certificate' shall be issued on completion of the registration process" |
Paragraph 2(1): who may file and how
The text is wide: "any person who intends to establish" an enterprise. It is not limited to an enterprise already running. Paragraph 6 of the same notification then says what information is needed, including the Aadhaar number, and paragraph 6(2) says there is no fee for filing; see our post on paragraph 6. If you want help preparing the filing, our Udyam registration service walks through the details.
Three features matter.
Online only. The filing is "online in the Udyam Registration portal". The notification does not describe any paper route. Paragraph 9(3) deals with a person who cannot file for any reason, and sends that person to the Single Window Systems.
Self-declaration. The registration is "based on self-declaration with no requirement to upload documents, papers, certificates or proof". The enterprise declares the facts. The notification links some information to outside records: for example, paragraph 4 links investment to the Income Tax Return and paragraph 5 links turnover to the Income Tax Act or the CGST Act and the GSTN. That is how declared figures are matched with government sources, not a requirement to upload documents at the filing stage.
Self-declaration carries liability. Paragraph 6(8) says whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures "shall be liable to such penalty as specified under section 27 of the Act". The ease of filing does not remove the duty to be accurate.
Paragraph 2(2): the Udyam Registration Number
On registration, "an enterprise (referred to as 'Udyam' in the Udyam Registration portal) will be assigned a permanent identity number to be known as 'Udyam Registration Number'".
Two points from the wording:
- The notification calls the registered enterprise "Udyam".
- The number is called permanent. Paragraph 8 requires the enterprise to update its information on the portal, so the number stays while the details are updated. For how to recover a number you have lost, see our post on forgetting an Udyam Registration Number.
Paragraph 2(3): the Udyam Registration Certificate
An e-certificate called "Udyam Registration Certificate" is issued "on completion of the registration process". The text does not say what the certificate must contain, how it is delivered, or how long the process takes, so this article does not either.
The certificate is an electronic document. The notification replaces the earlier memorandum system: paragraph 7 says that existing enterprises under the earlier registration systems must register again on the Udyam portal.
How this fits with the Act
Section 8(1) of the Act provides for filing a memorandum of a micro, small or medium enterprise. Section 8(2) says the form of the memorandum, the procedure of its filing and other matters incidental thereto "shall be such as may be notified by the Central Government after obtaining the recommendations of the Advisory Committee". S.O. 2119(E) says in its preamble that it "specifies the form and procedure for filing the memorandum (hereafter in this notification to be known as 'Udyam Registration')". So Udyam Registration is the notification's name for the section 8 memorandum. See our post on section 8(2) to (5).
What paragraph 2 does not say
- It does not say which documents the portal may ask about; paragraph 2(1) says none need be uploaded.
- It does not say how long the certificate is valid or whether it must be renewed.
- It does not say how a category is worked out; paragraphs 1, 3, 4 and 5 do.
- It does not list fees; paragraph 6(2) says there is none.
Practical examples
Example 1: a new proprietor. A person starting a small manufacturing unit files Udyam Registration online on the portal, declares the details and receives a Udyam Registration Number and certificate. The notification requires no document upload at that stage.
Example 2: a company. A private limited company files online as a person intending to run an enterprise. Paragraph 6(5) then says the organisation or its authorised signatory provides its GSTIN and PAN along with its Aadhaar number.
Example 3: an error in a declared figure. An enterprise declares a figure that later proves wrong. Paragraph 6(8) speaks of intentional misrepresentation or suppression; paragraph 8 provides for updating. Whether a particular mistake is innocent or intentional is a question of fact.
Need help with Udyam registration?
Filing is online and self-declared, but the details you declare must be correct and match your records. Our Udyam registration team can help you prepare the information and complete the filing.
Key takeaways
- Paragraph 2(1): Udyam Registration is filed online on self-declaration, with no requirement to upload documents.
- Paragraph 2(2): the enterprise gets a permanent Udyam Registration Number.
- Paragraph 2(3): a Udyam Registration Certificate (an e-certificate) is issued on completion.
- Intentional misrepresentation attracts the section 27 penalty under paragraph 6(8).
- The notification does not state certificate validity or processing time.
Read next
- Paragraph 1 of the Udyam Notification (S.O. 2119(E)): Classification of enterprises
- Paragraph 6 of the Udyam Notification (S.O. 2119(E)): Registration process, fee and Aadhaar
- How to Register under Udyam (MSME)
- MSME Udyam Registration Process Step by Step
Disclaimer: Based on the Micro, Small and Medium Enterprises Development Act, 2006 (official text, not amended by the Jan Vishwas Acts of 2023 or 2026) and the Udyam notifications S.O. 2119(E) of 26 June 2020 and S.O. 1364(E) of 21 March 2025, read with later developments noted in the article, as on 30 September 2026. Notifications, rules and the Udyam portal change; verify the current position before acting.