At a glance
| Parameter | Detail |
|---|---|
| Proprietorship | Aadhaar of the proprietor |
| Partnership firm | Aadhaar of the managing partner |
| Hindu Undivided Family | Aadhaar of the karta |
| Company, LLP, trust, society, co-operative | Aadhaar of an authorised signatory, with the entity's PAN |
| PAN requirement | Mandatory except for a proprietorship holding no other registration |
| GSTIN requirement | Only where liable under the CGST Act, 2017 |
| Registrations per PAN | Exactly one |
The Aadhaar rule by constitution
Every Udyam registration is authenticated by an OTP sent to the mobile number linked to an Aadhaar. The recurring practical problem is not knowing whose Aadhaar it should be, and using the wrong person's, which produces a registration that does not sit correctly against the enterprise.
Hindu Undivided Family: the karta's Aadhaar
- Company: the Aadhaar of an authorised signatory, together with the company's PAN and CIN
- Limited liability partnership: the Aadhaar of an authorised designated partner, with the LLP's PAN
- Trust, society or co-operative: the Aadhaar of an authorised signatory, with the entity's PAN
The PAN and GSTIN position
PAN of the enterprise is mandatory for every organisation type other than a proprietorship that is not registered under any other Central or State law, where the proprietor's own PAN may be used.
GSTIN is conditional. Notification S.O. 1055(E) dated 5 March 2021 aligned the requirement with liability under the CGST Act, 2017, so a business below the GST threshold or dealing in exempt supplies can register on Udyam without a GSTIN. Where a GSTIN exists, quote it, because turnover is pulled from GST data.
One PAN, one registration
The rule as stated by the Ministry is that no enterprise shall file more than one Udyam Registration, though any number of activities including manufacturing, service or trading may be added within that one registration. Additional factories, offices, godowns and branches are recorded inside it, and investment and turnover across all of them are aggregated for the composite classification test.
Genuinely separate entities with separate PANs each get their own registration. A proprietorship and a private limited company owned by the same person are two enterprises with two PANs and two registrations.
Where duplicates already exist, keep the registration with the correct activity codes and address and cancel the other, because duplicates are a common reason for lender and subsidy applications being returned.
What changes when the constitution changes
Converting a proprietorship into a private limited company, or a partnership into an LLP, creates a new legal person with a new PAN. The Udyam registration does not travel with it.
The new entity registers afresh, and the old registration should be cancelled once the business has fully transitioned. Leaving both live produces exactly the ambiguity that stalls bank and procurement verification.
Whose Aadhaar is used for a private limited company?
The Aadhaar of an authorised signatory, together with the company's PAN. The company is the enterprise being registered, and the signatory's Aadhaar is only the authentication method for the filing. Using a director's personal PAN instead of the company's is a frequent error and produces a registration that does not sit against the company at all, which then has to be cancelled and refiled.
Can a proprietor register without a PAN?
A proprietorship not registered under any other Central or State law may use the proprietor's own PAN. For every other organisation type the PAN of the enterprise itself is mandatory. In practice almost every proprietorship of any size holds a PAN already, so this relaxation matters mainly for very small unregistered businesses taking their first step into the formal system.
Can I have two Udyam registrations for two businesses?
Only if they are separate entities with separate PANs. One PAN supports exactly one Udyam Registration Number, and multiple activities or locations under the same PAN are recorded inside that single registration. Where duplicates already exist against one PAN, keep the registration carrying the correct activity codes and address and cancel the other, since duplicates routinely stall lender and subsidy applications.
What happens to my Udyam registration if I convert to a company?
The new company has a new PAN and must register afresh. The registration does not carry over, and the old one should be cancelled once the business has transitioned, to avoid two live registrations for what is now one business.
Is GST registration required for Udyam?
Only where the enterprise is liable to register under the CGST Act, 2017. Notification S.O. 1055(E) dated 5 March 2021 removed the blanket requirement, so a business below the threshold can register without a GSTIN. Where a GSTIN does exist it must be quoted, because the portal pulls turnover from GST data and an omitted GSTIN leaves the classification resting on unverified figures.
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CA & CS Team
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