If you are running a business in Bihar—whether it’s a small furniture workshop in Saharsa, a flourishing boutique in Patna, or a food processing unit in Muzaffarpur—you’ve probably heard people talking about “MSME” or “Udyam.”
But what is it exactly? Is it just another piece of paper to keep in your file?
The short answer is: No. In today’s Bihar, MSME registration (now called Udyam Registration) is the single most powerful document a small business owner can have. It is your entry pass to government schemes, lower interest rates on loans, and protection against big companies that don’t pay their bills on time.
At Bharat License Expert, we see many local entrepreneurs working hard but missing out on massive benefits simply because they don’t have this one registration. We’re here to change that. We help you navigate the government’s Udyam portal so you can stop being “just a shop” and start being a “recognized enterprise.”
In the past, we had things like EM-I/II and later Udyog Aadhaar. But as of July 2020, the Central Government scrapped all of those. Now, there is only one portal and one registration: Udyam Registration.
If you still have an old “Udyog Aadhaar” certificate, it is technically expired. You need to migrate to the new Udyam system to keep getting benefits. Don’t worry, the team at Bharat License Expert handles this migration for you daily.
The government has made the definition very broad. Almost every business you see on the streets of Patna or Bhagalpur qualifies. The categories are divided based on your Investment (how much you spent on machinery/equipment) and your Turnover (your total sales).
Investment up to ₹1 Crore and Turnover up to ₹5 Crores. (This covers 90% of small shops and workshops in Bihar).
Investment up to ₹10 Crores and Turnover up to ₹50 Crores.
Investment up to ₹50 Crores and Turnover up to ₹250 Crores.
Getting a loan from a bank in Bihar can be a headache. Managers often ask for “Security” or “Guarantee.” However, if you have an Udyam certificate, you can apply under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This means the government acts as your guarantor. It’s not a magic wand, but it makes the conversation with your bank manager much easier.
One of the biggest killers of small businesses in Bihar is “udhaari” (credit). If you supply goods to a large company or a government department, they often take months to pay. Under the MSME Act, any buyer who takes goods from a registered MSME must pay within 45 days. If they don’t, they have to pay you compound interest that is three times the bank rate. Just mentioning that you are a registered MSME is often enough to get your stuck money moving.
If you want to take your Bihar-made products to the national or international market, you might need an ISO certification or a Trademark. The government reimburses the cost of ISO certification for MSMEs and, as mentioned, gives you a 50% flat discount on the Trademark filing fee.
If you are applying for the Prime Minister’s Employment Generation Programme (PMEGP) or the Bihar Startup Policy, the first document they ask for is your MSME/Udyam registration. Without it, your application won’t even be looked at.
The Udyam portal looks simple—it’s just a website, right? Not quite. Here is where people in Bihar often get stuck:
The NIC Code Trap: This is the biggest hurdle. You have to pick a 5-digit National Industrial Classification (NIC) code that perfectly describes what you do. If you are a printer who also does bookbinding, picking the wrong code can mean you are ineligible for specific subsidies meant for the printing industry.
Aadhaar-Phone Linkage: Your Aadhaar must be linked to your current mobile number for the OTP. If it’s linked to an old number you lost three years ago, the process stops. We help you figure out the fastest way to get this updated.
GST Sync: The Udyam portal is now synced with the GST and Income Tax servers. If the data you enter doesn’t match your GST filings, the system will flag your application or issue a “Limited” certificate.
Investment Valuation: Many people don’t know how to calculate “Investment in Plant and Machinery” correctly. Do you include the GST paid? Do you include the cost of the land? If you get these numbers wrong, your enterprise category (Micro/Small/Medium) will be wrong.
We won’t ask you for a heap of papers. To get your MSME registration in Bihar, we only need:
Aadhaar Card of the proprietor (owner) or the authorized partner/director.
PAN Card of the business (or the owner’s PAN if it’s a sole proprietorship).
Mobile Number (Must be the one linked to your Aadhaar).
Bank Account Details: Just the IFSC code and account number (where you want to receive government subsidies).
Basic Business Info: What is the name of your shop/factory? How many people work there? When did you start?
We talk about what your business does. We find out if you are a manufacturer, a service provider, or a trader.
We help you calculate your investment and turnover figures according to the latest government rules. We select the correct NIC codes to maximize your benefits.
We handle the filing on the Udyam portal. We’ll call you when the OTP is sent. Once you provide it, the application is submitted instantly.
Unlike GST or Trademarks which take days or weeks, the Udyam certificate is often generated quite quickly. We download the high-quality digital certificate and send.
Once you have your certificate from Bharat License Expert, you can apply for these Bihar-specific and National schemes:
ZED Certification Scheme: Get “Zero Defect Zero Effect” certification for your factory and get subsidies on equipment.
Public Procurement Policy: The government is mandated to buy at least 25% of its requirements from MSMEs. Your Udyam certificate is your ticket to these tenders.
CLCSS: A scheme that gives you a 15% capital subsidy if you buy new, high-tech machinery for your plant in Bihar.
Yes! Coaching centers, consultancy firms, and even software developers are “Service MSMEs.” You are entitled to the same benefits as a factory owner.
The government does not charge a “filing fee” for Udyam. However, our consultancy fee covers the professional selection of NIC codes, data syncing with GST/IT, and ensuring your certificate is issued without errors.
The new Udyam certificate is permanent. As long as your business is active, you don’t need to “renew” it every year. However, if your turnover grows significantly, your category might change from “Micro” to “Small,” which we can help you update on the portal.
Absolutely. Many businesses in Bihar start from home. As long as you have a business name and an address proof (like an electricity bill), you can register.
