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Who Needs UVAM Approval?

Eligibility Criteria Explained for MSMEs & Large Vendors

UVAM (Unified Vendor Approval Module) is a mandatory compliance requirement for any entity intending to supply goods or services to Government buyers through the Government e-Marketplace (GeM). It is not restricted to a specific business size or sector. The obligation arises purely from participation in Government procurement.

1. MSMEs Supplying to Government Departments

All MSMEs are mandatorily required to obtain UVAM approval if they wish to:

  • List products or services on GeM

  • Participate in Government bids or BOQs

  • Receive purchase orders from Central or State entities

  • Receive payments through Government systems

There is no relaxation for MSMEs under UVAM, despite policy incentives available elsewhere (like EMD exemptions).

Regulatory logic:

MSME status provides commercial benefits, not identity or payment-risk exemptions. UVAM ensures that Government payments reach the correct legal MSME entity.

Proprietorship Firms (High-Scrutiny Category)

Proprietorships are fully eligible, but face higher verification sensitivity because:

  • The business and individual are legally the same

  • Payment and liability attach directly to the proprietor

UVAM is mandatory to:

  • Authenticate the proprietor via Aadhaar

  • Match PAN and bank account ownership

  • Eliminate benami or proxy proprietorships

Without UVAM: proprietors cannot transact with Government buyers at all.

3. Partnership Firms, LLPs & Companies

All structured entities must obtain UVAM approval before Government supply.

This includes:

  • Registered partnership firms

  • Limited Liability Partnerships (LLPs)

  • Private Limited & Public Limited Companies

UVAM validates:

  • Legal existence of the entity

  • Authorized signatory power

  • Alignment between PAN, bank, and GST

  • Accountability of directors/partners

Compliance focus: Government contracts must be enforceable against a legally verified entity.

4. Large Enterprises & Corporate Vendors

UVAM is equally mandatory for large vendors and corporates.

There is no exemption based on turnover, brand value, or past Government dealings.

Why large vendors must comply:

  • High-value procurement increases audit exposure

  • Payment traceability is non-negotiable

  • Multiple subsidiaries require identity segregation

UVAM prevents:

  • Cross-use of credentials

  • Multiple vendor IDs for the same corporate group

5. Service Providers (Often Overlooked)

UVAM is not limited to product sellers.

Mandatory for:

  • Consultants

  • IT & software service providers

  • Legal, accounting, manpower, and technical service firms

  • AMC, maintenance, logistics, and outsourcing vendors

If a service results in a Government payment, UVAM approval is compulsory.

6. New Vendors vs Existing Vendors

New Vendors

  • UVAM must be completed before any commercial activity

  • No listing, bidding, or order acceptance without approval

Existing Vendors

  • Legacy sellers are required to migrate and complete UVAM

  • Non-compliance can result in:

    • Account restrictions

    • Listing suspension

    • Payment holds

UVAM is retrospective in enforcement, not optional.

7. Who Does NOT Need UVAM?

UVAM is not required only if:

  • You do not sell to Government buyers

  • You are not registered on GeM

  • You do not intend to receive Government payments

The moment Government procurement is involved, UVAM becomes applicable.

Compliance Summary (Plain Language)

CategoryUVAM Required?Remarks
MSMEs✅ YesNo exemption
Proprietorships✅ YesHigher scrutiny
Partnership / LLP / Company✅ YesAuthority verification
Large Enterprises✅ YesNo size-based relief
Service Providers✅ YesPayment-linked
Private B2B only❌ NoOutside scope