When a business is started and after running it, many changes have to be made in the future, like entering a new address, updating the mobile number, or sometimes updating the ownership if it has changed, shifting of business activities, or there can be many more. Suppose the business comes under Micro, Small, and Medium Enterprises ( MSMEs), and that business has been registered inside the Udyam Registration Portal. In that case, the details of the business must always be accurate and up to date.

But what happens when MSMEs have to make changes in the Udyam Certificate? Should MSMEs update the existing registration? Or should the old registration be cancelled and a new one applied?

This article will help you understand what is the right approach MSMEs should adopt whenever they have to make changes in their business details. Updating or cancelling, which of these should be chosen, and what is necessary

Before proceeding further in the article, let us understand Udyam registration.

Udyam registration is an initiative started by the government, which was done especially for micro, small, and medium enterprises (MSMEs). It acts like a digital identity card for businesses that come under micro, small, and medium enterprises. Once the business registers, they get a unique registration number and get a certificate, due to which they can avail of many benefits like

• Subsidies
• Loans
• Government schemes
• Participation in the government e-marketplace (Gem)

Therefore, it is very important to keep the registration up to date and valid, so that business operations can be smooth.

When Business Details Change

Here are some common situations where businesses may need to change details:

• Change in business name
• Change in ownership
• Change in business type (sole proprietorship to partnership or vice versa)
• New address
• Change in mobile number or email
• Update in bank details
• Shift in turnover or investment category (which may change MSME status)

Now, the main concern arises — should you update or cancel your Udyam registration?

When to Choose the Update Option

The Udyam portal offers a user-friendly “Update” feature, which lets you modify certain details online using your Aadhaar-linked mobile number.

You should choose to update when:

1. Minor Details Have Changed

If you want to update your email ID, mobile number, address, business activity, NIC code, number of employees, or bank account details, the update feature is the right choice.

2. Do you Still Use the Same Aadhaar

If the Aadhaar number of the business owner or authorized signatory is the same, and you’re just making routine changes, updating your certificate is easier and quicker.

3. Your Business Entity Remains the Same

If your business is still operating under the same PAN, GSTIN, and business structure, there's no need to cancel your registration. Just log in and update the details.

4. You Want to Avoid Losing Benefits

Cancelling your certificate means starting from scratch. If your business is already enjoying benefits like subsidies, loans, or GeM access, cancelling it might disrupt those services. Updating helps you stay connected without interruption.

When to Choose the Cancel Option

While updating is convenient, cancellation may be necessary in certain cases.

You should cancel and re-register when:

1. Business Structure Has Changed

If your business changes from sole proprietorship to partnership, or from LLP to Private Limited, it becomes a new legal entity. In such cases, you must cancel the old Udyam registration and apply fresh with the new PAN and Aadhaar.

2. Owner or Promoter Has Changed

Udyam registration is Aadhaar-linked. If the business owner changes (e.g., in case of sale, inheritance, or transfer), the existing certificate cannot be updated. You must cancel the old registration and apply again using the new owner’s Aadhaar.

3. Business is Permanently Closed

If your business has stopped operating, or you’re shutting it down for good, cancellation is the right step. This keeps the database clean and avoids misuse of your certificate.

4. You Made Errors While Registering

If there were serious mistakes in the original registration — like a wrong PAN, Aadhaar, or business category — it’s best to cancel and start fresh. Some errors can't be fixed through the update feature.

Step-by-Step: How to Update Udyam Details

Updating your Udyam registration is simple:

1. Visit the Udyam registration portal 

2. Click on "Update Udyam Certificate"

3. Enter Applicant's name, Mobile number, Email ID, Udyam Registration Number

4. Choose between a mobile number and an email ID where you want the OTP

5. Provide the details that you want to update in the certificate 

6. Enter the verification code to verify it. And at last, click on edit details 

Tip: Make sure your mobile number and Aadhaar are linked and active.

Read it: How to change or edit Udyam certificate details

Step-by-Step: How to Cancel Udyam Registration

If cancellation is the right path, here’s how to proceed:

1. Go to the Udyam registration portal 

2. Click on cancel Udyam registration 

3. MSME cancellation form appears on the screen. 

4. Fill in the required details that are asked in the form, like the applicant's name, mobile number, which certificate you want to cancel, etc.

5. Enter verification code and click on cancel application 

Still Confused? Here’s a Quick Decision Guide

Ask yourself:

Are you only changing address or contact details? → Update

Has your business ownership changed? → Cancel

Did you switch from sole proprietorship to Pvt Ltd? → Cancel

Are you correcting minor errors in the NIC code or employee number? → Update

Is the business no longer active? → Cancel

Conclusion

Choosing between update and cancel depends on the type of change you're making. If it's a small or routine change, updating your existing Udyam certificate is the best option, it’s faster and keeps your benefits intact. But for major structural changes, cancellation and fresh registration is the more appropriate path.

Always keep your Udyam details accurate and current to enjoy seamless access to government benefits and avoid future complications.