Fake Udyam Registration Portals Target MSMEs: Government Issues Warning, Here’s How to Stay Safe

The Government of India has issued a fresh warning for entrepreneurs and small business owners after multiple cases of fraud were reported through fake Udyam Registration portals. The Ministry of Micro, Small and Medium Enterprises (MSME) has cautioned people against misleading websites that impersonate the official Udyam portal and charge money in the name of registration. The ministry has made it clear that Udyam registration is completely free, and no agency, consultant, or private entity is authorized to collect any fee for this service.

MSME Ministry Raises Alarm Over Udyam Portal Fraud

According to the MSME Ministry, several fraudulent websites have surfaced that closely resemble the official Udyam Registration portal. These fake platforms lure business owners—especially first-time entrepreneurs—by claiming to offer quick registration, certificate downloads, or “assisted services” in exchange for money. Many unsuspecting users end up paying thousands of rupees, unaware that the genuine registration process does not involve any charges at all.

The ministry has urged citizens to remain alert and use only the official Udyam Registration website or the government-issued QR code for registration. Any website or individual demanding money for Udyam registration should be treated as suspicious.

How the Scam Works

Fraudsters design websites that look almost identical to the official Udyam portal. These sites often appear in sponsored search results or are promoted through social media and messaging apps. Once users land on these pages, they are asked to enter sensitive details such as Aadhaar number, PAN, GST details, or business information.

In many cases, the fake websites demand a “processing fee” or “certificate printing charge.” After payment, victims may either receive a fake registration certificate or nothing at all. Even more concerning is that the personal and financial information collected through these sites can be misused for identity theft or other cyber crimes.

The MSME Ministry has identified multiple such fake portals and noted that the scale of this fraud is increasing as more people try to register their businesses to avail government benefits.

Official Udyam Registration Is 100% Free

The government has reiterated that Udyam registration is entirely free, online, and paperless. Entrepreneurs do not need to upload any documents during the registration process. The only mandatory requirement is an Aadhaar number, which is verified through OTP-based authentication.

There is no role for middlemen, agents, or consultants, and no renewal or registration fee is charged at any stage. Any claim suggesting otherwise is false and misleading.

How to Protect Yourself From Udyam Registration Scams

To avoid falling victim to such frauds, business owners should follow a few basic safety measures:

• Register only through the official government website: udyamregistration.gov.in

• Avoid clicking on sponsored links or unknown websites claiming “quick” or “paid” Udyam registration

• Do not share Aadhaar, PAN, or GST details on unofficial platforms

• Never pay money to individuals or agencies claiming to help with Udyam registration

• Use only government-verified QR codes and links shared by the MSME Ministry

If there is any doubt, users are advised to cross-check information through the official social media handles or notifications of the MSME Ministry.

Where to File a Complaint

If you have already been cheated or come across a fake Udyam registration website, the government encourages immediate reporting. Complaints related to fraudulent Udyam registration can be sent via email to support@udyam.gov.in or msme@gov.in. While sending the complaint, it is advisable to mention “Fraudulent Udyam Registration” clearly in the subject line and provide all relevant details.

In cases of online financial fraud, victims should also lodge a complaint on the National Cyber Crime Reporting Portal at cybercrime.gov.in or call the cyber crime helpline number 1930 for immediate assistance.

What Is the Udyam Portal?

The Udyam Portal is the official online platform launched by the Government of India on 1 July 2020 for the registration of Micro, Small, and Medium Enterprises (MSMEs). Registration on this portal enables businesses to access various government schemes, priority sector lending, subsidies, and other financial and non-financial benefits.

The classification of enterprises under Udyam is based on investment and annual turnover, and the registration process is completely self-declared. Once registered, businesses receive a unique Udyam Registration Number and certificate, which remains valid for a lifetime without any renewal fee.

Final Takeaway

With digital adoption increasing, cyber frauds are also becoming more sophisticated. The MSME Ministry’s warning serves as an important reminder for entrepreneurs to stay vigilant. Udyam registration is free, simple, and direct, and any attempt to charge money for it is a red flag. Staying informed and using only official government channels is the best way to remain safe from such scams.