How to Cancel MSME Registration Online – Step-by-Step Process

Step-by-step guide to cancel MSME registration online. Learn required documents, valid reasons for cancellation, processing time, and how to check status.
Business Loan
4 min
22 April 2025
If you're considering ending your business’s MSME (Micro, Small, and Medium Enterprises) registration, it’s important to understand the entire process. Whether your business is no longer eligible or you've decided to close it down, cancelling your MSME online registration is necessary to avoid unnecessary liabilities. The process is simple and can be completed online, saving you time and effort. In this article, we’ll guide you through the necessary steps to cancel MSME registration and the online MSME cancellation process. We will also highlight reasons for cancellation, required documents, and troubleshooting tips to make the process smooth. If you're considering future business growth, you might also want to check your business loan eligibility to access the financial support you need.

Reasons for cancelling MSME registration

There are various reasons a business may choose to cancel MSME registration. Some of the most common reasons include:

  • Business closure: If the business is no longer operational, cancellation of the MSME certificate ensures compliance.
  • Change in business size: If the business outgrows MSME criteria (in terms of turnover or investment), updating or cancelling the registration might be necessary.
  • Voluntary de-registration: Businesses may choose to cancel the registration if they no longer wish to enjoy MSME benefits.
  • Ineligibility: If a business no longer qualifies for MSME status, it may choose to cancel the registration.
However, if you are still looking to expand your business despite cancellation, you can apply for our business loan to help fund your next big move.

Eligibility criteria for MSME cancellation

Before initiating the cancellation process, ensure that your business meets the following criteria for MSME registration cancellation:

  • Valid reason: You must have a valid reason for cancellation, such as business closure or no longer meeting MSME criteria.
  • No outstanding dues: Ensure that all dues, taxes, and government fees related to MSME registration have been cleared.
  • Correct documentation: All required documents must be accurate and updated.
  • Active Udyam registration: The MSME registration must be valid in the system and active.
If you're unsure about the eligibility criteria, you can always reach out for more information or check if you qualify before proceeding with the cancellation.

Apply for cancellation of MSME registration

To apply for MSME certificate cancellation, follow these simple steps:

  • Log into the Udyam portal: Use your Udyam Registration Number (URN) and registered details to log into the portal.
  • Select cancellation option: Once logged in, navigate to the “Cancellation” section.
  • Provide necessary details: Fill in the reason for cancellation and any other requested details.
  • Submit the cancellation request: Review the information and submit your request for cancellation.
This online MSME cancellation process ensures that everything is handled quickly and efficiently, saving you time compared to offline methods.

Documents required for MSME cancellation

Before proceeding with MSME certificate cancellation, ensure you have the following documents ready:

  • Aadhaar number: For identity verification.
  • PAN number: As proof of your business tax details.
  • GSTIN: If applicable, for GST details.
  • Business closure documents (if applicable): If you are closing your business, official documents to prove this.
  • No due certificate: If your business has outstanding dues, clear them before proceeding with the cancellation request.

Step-by-step process to cancel MSME registration online

Follow these simple steps to cancel MSME registration online:

  • Visit the Udyam portal: Go to the Udyam registration portal where you initially registered your MSME.
  • Login to your account: Use your Udyam Registration Number (URN) and registered mobile number or email to log in.
  • Navigate to the cancellation section: Once logged in, go to the “Cancel MSME Registration” option.
  • Fill out cancellation details: Provide the reason for cancellation, along with any necessary details, such as business closure or non-compliance with MSME criteria.
  • Submit the request: After reviewing, submit your cancellation request.
  • Download the cancellation confirmation: Once your cancellation is approved, download the confirmation and updated details.
Once cancelled, you will receive a notification confirming the de-registration of your MSME certificate.

How to check MSME cancellation status

To check the status of your MSME cancellation, follow these steps:

  • Log into the Udyam portal: Use your URN and registered contact details.
  • Go to cancellation status: Navigate to the “Check Status” section for cancellation requests.
  • View your status: The portal will display the current status of your MSME certificate cancellation.
Checking your cancellation status ensures that you’re updated on the process and that everything is moving smoothly.

Common errors and troubleshooting in MSME cancellation

Sometimes, you may encounter issues while cancelling your MSME registration. Here are some common errors and how to troubleshoot them:

  • Invalid URN or login details: Double-check your registration number or contact details to ensure they match the portal records.
  • Incomplete documents: Ensure that all required documents, such as GSTIN or PAN details, are correctly uploaded.
  • Outstanding dues: If there are any dues, clear them before proceeding with cancellation.
  • System errors: If the portal faces technical issues, wait for a while and try again.
Should you face persistent problems, consider reaching out to Udyam support for assistance.

MSME cancellation fees and processing time

AspectDetails
Cancellation feesNo fees for cancelling your MSME registration.
Processing timeTypically, the cancellation is processed within 1-2 working days.
Validity of cancellationNo validity once cancelled; it is a final process.


Ensure that your application is correct to avoid delays in processing.

Conclusion

MSME certificate cancellation is a simple process that can be done online through the Udyam registration portal. By following the steps outlined in this guide, you can ensure that your registration is correctly cancelled and that you avoid any future obligations. However, if you are planning to grow your business again, or if you need financial support during the cancellation process, consider applying for a business loan. Their flexible options and fast approval process can help you take your business to new heights.

Frequently asked questions

Can MSME certificates be cancelled?
Yes, MSME certificates can be cancelled through the Udyam registration portal. This is a simple process that can be done online. If you're considering future growth after cancellation or if you need financial support, you may want to check your business loan eligibility to explore potential funding options for your business.

Can I cancel my MSME registration offline?
No, MSME registration cancellation must be done online through the official Udyam portal. It ensures a smooth and transparent process.

What if my MSME cancellation request is rejected?
If your request is rejected, check the reason for rejection and rectify the issue, such as incomplete documents or outstanding dues, and resubmit the request.

Can I cancel MSME registration after a business name change?
Yes, you can cancel your MSME registration after a business name change. However, ensure all business details are updated before initiating the cancellation process. And if you need financial assistance after your business name change, apply for our business loan and secure funds to support your growth.

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