Udyam Registration: Cancel Your MSME License Online

Get a quick step by step guide on how to cancel msme license online, from which portal to access to getting confirmation or notification on the cancellation request.

15 Apr,2024 08:45 IST 720
Udyam Registration: Cancel Your MSME License Online

The launch of MSMEs (Micro, Small, and Medium Enterprises) in India has been a complete game changer for many. The MSME License registration or Udyam registration process launched in June 2020 has thrown open the doors to a wide range of government schemes and promotions. These are specifically designed to ease the challenges one faces while running a startup business or an already existing establishment.

It has multiple benefits, such as:

  • Easier Access to Credit
  • Government Tender Participation
  • Tax Benefits
  • Support, Sponsorship & Mentorship Programs

MSME License Online:

As of now, over 2 crore MSMEs have taken advantage of the simplified online process to obtain their MSME license registration. This signifies the crucial impact this initiative has had on empowering millions of small businesses across India.

However, there may be situations where an MSME owner no longer needs their Udyam registration. Here are some common reasons why an MSME might choose to cancel their Udyam license:

No Longer Required: The business may have grown beyond the MSME classification or may have shifted its focus to activities that don't qualify for Udyam benefits.

Business Closure: Unfortunately, some businesses may be forced to shut down due to various economic factors.

Change in Ownership: If there's a significant change in ownership structure, the new owner may not require the existing Udyam registration.

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Steps To Cancel Your MSME License Online

Cancelling a Udyam registration online is a very simple and easy process through the Udyam registration portal (udyam registration.gov.in). Here's a step-by-step guide:

Step 1

Visit the Udyam Registration Portal: Go to udyamregistration.gov.in and locate the "Update/Cancel Udyam Registration" option.

Step 2

Log In: Enter your Udyam number and registered mobile number to log in to the portal securely.

Step 3

Verify with OTP: Choose to receive a one-time password (OTP) via SMS to your mobile phone or email address for verification. Enter the received OTP to validate your login.

Step 4

Initiate Cancellation: Once logged in, click on "Cancellation" located at the top right corner of the screen.

Step 5

Reason for Cancellation: A drop-down menu will appear, allowing you to select the reason for cancelling your Udyam registration. Choose the most appropriate option, such as "No Further Need," "I Have Shut Down My Business," or any other relevant reason.

Step 6

Provide Additional Details: Depending on the selected reason, you may be required to provide further details in a dedicated text box. This helps the authorities understand the specific circumstances surrounding your cancellation request.

Step 7

Submit Cancellation Request: Click on the "Cancel My Udyam" button to submit your request for cancellation electronically.

Step 8

Confirmation and Notification: The system will acknowledge your cancellation request. You can expect to receive a confirmation notification within one to two hours of your request being approved.


While the Udyam registration process has been a boon for MSMEs in India, there are situations where cancelling it may become necessary. The good news is that the online cancellation process is user-friendly and facilitates a smooth experience for those who no longer require the benefits associated with their Udyam license. Remember, obtaining an MSME License Online through the Udyam portal remains a simple and efficient process for qualifying businesses seeking to unlock the advantages associated with Udyam registration.


Q1. Is Udyam registration cancellation mandatory for businesses that no longer qualify as MSMEs?

Ans. No, cancellation is not mandatory if you do not identify as an MSME. However, it's in your best interest to keep your registration updated so as to avoid any discrepancies with government records.

Q2. What are some reasons why an MSME might want to cancel their Udyam registration?

Ans. Udyam registration can be cancelled if:

- The business has outgrown the MSME classification.

- The business has shut down.

- There's been a significant change in ownership, and the new owner doesn't require the registration.

Q3. How much does it cost to cancel a Udyam registration online?

Ans. The cancellation process of Udyam registration is entirely free of cost.

Q4. How long does it take to get confirmation after cancelling my Udyam registration?

Ans. The confirmation of your Udyam registration cancellation usually takes about one or two hours after your request has been approved.

Q5. If I cancel my Udyam registration, can I re-register in the future if my business circumstances change?

Ans. Yes, there is a provision to apply for an Udyam re-registration if your business qualifies as an MSME again in the future. The Udyam portal allows you to update your registration details as and when needed.

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