MSMEs are now a prominent part of India's development, and the government has extended its supporting hands to MSMEs to ensure their optimum growth. Hence, it is often found that MSMEs have grown to a certain level or merged with other enterprises to cater to the demand of a larger segment of the audience. As a result, they have to increase their investment in machinery or plants to manufacture more and meet the demands, which will also increase the annual turnover. At such points, enterprises need to cancel their MSME registration because they no longer qualify as MSME due to the growth. In case, you also want to cancel your MSME registration, your guide is just here:

Step-By-Step Process To Cancel MSME Registration Online

The process to cancel MSME registration is completely online – so you don’t need to stand in a queue and wait for your turn to cancel your Udyam registration. In order to cancel MSME registration, following are steps:

1. Visit https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
2. Click on “Update/Cancel Udyam Registration”
3. Log in with credentials
4. Complete OTP verification
5. Click on “Cancellation”
6. Click on the dropdown and select the type of cancellation
7. Enter the required details (details will be asked as per the type of cancellation chosen in the previous step)
8. Click on “Cancel My Udyam”

Sounds simple? Onboarding with PayG Payment Gateway is even simpler – as you now qualify as a large enterprise, you will need ultra-secure transactions to prevent monetary loss. So, integrate PayG payment gateway and stay relaxed.

Cost of MSME Registration Cancellation

Just like free registration for MSME, cancellation is also free of cost – there is no need to make any payment. The official MSME website is the only reliable portal for registration as well as for cancellation.

How Long Does It Take To Cancel MSME Registration?

It depends—approval usually takes a few hours (it may also take a few days).

Requirements To Cancel MSME Registration

During the cancellation of the MSME registration, it is advisable to keep a few documents handy:

1. Aadhaar number
2. Udyam registration number and certificate
3. Registered mobile number and mail ID

Is It Possible To Register After Cancelling MSME Registration?

Yes, in future, it is possible to re-register an enterprise and obtain the MSME certificate for it after cancellation – all it needs to meet the eligibility criteria of investment (for machinery/plant) and annual revenue to re-register. 

What Happens After Canceling MSME Registration?

On canceling the MSME registration, the enterprise loses the facilities it used to get to qualify as an MSME. For example, after canceling the certificate, an enterprise will not enjoy benefits like loans at cheap interest rates, several government schemes, reimbursements, tax concessions, etc.

Common Reasons To Cancel MSME Registration

There can be several reasons behind MSME registration cancellations. The commonest ones are listed below:

No Longer Meeting The Eligibility Criteria

It is one of the major reasons behind cancelling MSME registration. As the government schemes provide complete support to these enterprises, it becomes pretty easy to grow. Therefore, in the near future, it aims to serve more people by investing more, which will increase the annual turnover.

Now, MSME eligibility criteria have strict limits on investment and turnover for micro, small, and medium enterprises. In case, the enterprise has more investment or turnover than the mentioned limits, it will fail to meet the eligibility criteria. As a result, it has to cancel the MSME registration.

Business Structure Update

For MSMEs, it is quite common to merge with the enterprises dealing in the same or similar field to expand their market. As a result, the overall investment after merging may be higher than the limit specified for MSMEs, so as the annual turnover. It is also possible that a new owner does not want the MSME registration. In that case, there is no option other than canceling the registration.

Business Shut Down

This is an unfortunate reason why entrepreneurs request to cancel their MSME registration. Due to some reason, the business may fail to bring profit; hence, the management decides to call it off until a better plan comes up.

End Words

In a business, you must always move ahead – no matter what. Growth is a part of business, and shutdown is another part - these are like two sides of a coin. When someone has to cancel MSME registration for not meeting the criteria anymore for the growth his/her enterprise received, it is undoubtedly a clap-worthy moment as the enterprise will now be qualified as a large enterprise. Similarly, when someone needs to cancel MSME registration due to a business shutdown – he/she needs to come up with a better plan with better market research that will never fail and bring some profit on the table. In both cases, the entrepreneur needs to take lessons from their past and move forward for good.