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Paragraph 6(7) and (8) of the Udyam Notification (S.O. 2119(E)): One registration and penalty for misrepresentation

6(7): one enterprise, one Udyam Registration. The proviso lets any number of activities, manufacturing or service or both, be specified or added in it. 6(8): whoever intentionally...

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Last updated: October 2026Verified against: Government sources

Paragraph 6(7) of S.O. 2119(E) says no enterprise shall file more than one Udyam Registration, while any number of manufacturing or service activities may be added to that one registration. Paragraph 6(8) says that whoever intentionally misrepresents or suppresses the self-declared facts and figures is liable to the penalty specified under section 27 of the MSMED Act.

Paragraph 6(7): one registration

The rule reads: "No enterprise shall file more than one Udyam Registration". The proviso adds: "any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration."

QuestionAnswer from the text
Can an enterprise hold two registrations?No: "No enterprise shall file more than one"
Can one registration cover manufacturing and services?Yes: "manufacturing or service or both"
Is there a cap on activities?No: "any number of activities"
Can activities be added later?The proviso says activities "may be specified or added" in the one registration

Two points follow from the wording.

It binds the enterprise. The enterprise is the unit. Under paragraph 3(3), all units with GSTINs against the same PAN are collectively one enterprise, so separate units under one PAN are covered by one registration and not one each. Our post on paragraph 3 sets this out. If you want help deciding what to register, see Udyam registration.

The text prohibits filing, but names no consequence. Paragraph 6(7) does not say what happens to a second registration that has been filed. This article does not invent a consequence. The portal may handle duplicates in its own way, but the notification is silent. If you find you hold two numbers, see our posts on cancelling or surrendering a registration and on updating details, and take advice before acting.

Paragraph 6(8): intentional misrepresentation

The text: "Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act."

Break it into parts.

  • Who: "Whoever", which is not limited to the enterprise's owner.
  • What: intentionally misrepresents, or attempts to suppress, "the self-declared facts and figures".
  • Where: "appearing in the Udyam Registration or updation process". Updating under paragraph 8 is included.
  • Consequence: "liable to such penalty as specified under section 27 of the Act".

The word "intentionally" matters. An honest error is different from a deliberate false statement, and the paragraph speaks only of the latter. It does not say who decides whether an act was intentional, or how.

What section 27 says

Section 27(1) of the Act covers anyone who "intentionally contravenes or attempts to contravene or abets the contravention" of section 8(1) or section 26(2). The penalty is a fine: "in the case of the first conviction, with fine which may extend to rupees one thousand", and for any second or subsequent conviction "with fine which shall not be less than rupees one thousand but may extend to rupees ten thousand". Section 27(2) deals with a buyer who contravenes section 22 and fixes a fine not less than Rs 10,000.

SituationFine under s.27(1)
First convictionMay extend to Rs 1,000
Second or later convictionNot less than Rs 1,000, may extend to Rs 10,000

Section 28 says that "no court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence punishable under this Act". Our post on sections 27 and 28 explains the penalty and jurisdiction provisions. The text of section 27(1) speaks of "conviction", so the fine follows a trial, not a portal action.

Paragraph 6(8) does not itself state any amount; it borrows the penalty "as specified under section 27". It does not say that misrepresentation is a contravention of section 8(1) or section 26(2), and this article does not claim more than the words of paragraph 6(8) say. Do not treat the figures as a cap on the wider consequences of a false declaration. Other laws may apply, and the notification does not speak about them.

What the paragraphs do not say

  • Paragraph 6(7) does not say what happens to a duplicate registration.
  • Paragraph 6(8) does not say who inquires into intent or how.
  • Neither paragraph names any other penalty, such as cancellation; paragraph 9(4) separately allows an amendment or a recommendation for cancellation after an enquiry, and is covered in our post on paragraph 9.

Practical examples

Example 1: manufacturing and trading. A business makes goods and also provides repair services. It files one Udyam Registration and specifies both activities, as the proviso to 6(7) allows, and does not file a second one.

Example 2: a new activity. Two years later the same enterprise starts a new line of work. It adds the activity to the existing registration; the proviso says activities may be "specified or added".

Example 3: a deliberately understated figure. An enterprise knowingly declares a turnover lower than its records show to stay in a smaller category. That is the conduct paragraph 6(8) addresses, and section 27 sets the fine.

Need help with one clean registration?

A second registration or an inaccurate declaration creates avoidable trouble. Our Udyam registration team can help you check what is registered, add activities properly and keep declarations consistent with your records.

Key takeaways

  • One enterprise can file only one Udyam Registration (para 6(7)).
  • Any number of manufacturing or service activities can be specified or added in it.
  • Intentional misrepresentation or attempted suppression of self-declared facts and figures makes a person liable to the section 27 penalty (para 6(8)).
  • Section 27(1) fines: up to Rs 1,000 on first conviction; Rs 1,000 to Rs 10,000 on later convictions.
  • The notification is silent on what happens to a duplicate registration.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Paragraph 6

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Can I have two Udyam Registrations?

No. Paragraph 6(7) says no enterprise shall file more than one.

I run manufacturing and services. Do I need two?

No. Any number of activities, manufacturing or service or both, can be added in one registration.

If a rule seems to have changed, check the date of what you are reading before you act on it.

— TaxClue Compliance Desk

Paragraph 6: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Vikas Sharma Verified expert Tax & Compliance Expert

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Last reviewed: Live

Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

No. Paragraph 6(7) says no enterprise shall file more than one.

No. Any number of activities, manufacturing or service or both, can be added in one registration.

Paragraph 6(8) makes an intentional misrepresenter liable to the penalty specified under section 27 of the Act.

Under section 27(1), up to Rs 1,000 on first conviction and not less than Rs 1,000 but up to Rs 10,000 on later convictions.

It speaks of intentional misrepresentation and attempts to suppress; it does not mention honest errors.

Yes. It refers to "the Udyam Registration or updation process".