Building Business Tenders

Step by step

1. 01

   Get Udyam registration first

   Benefits for small firms in central government buying go to micro and small enterprises (MSEs) registered on the Udyam portal. Your SC/ST or woman owner status must be declared there.

   How to do itClose

   1. Register free on the Udyam Registration portal (udyamregistration.gov.in).
   2. Declare SC/ST or woman ownership in Udyam if it applies; this is mandatory for the 4% and 3% sub-targets.
   3. On the Udyam portal you can choose the option to link your enterprise with GeM.
   4. Traders can register on Udyam only for priority sector lending; they do not get public procurement benefits.

   Sources (1)

   1. DC-MSME: Frequently Asked Questions on Public Procurement Policy for MSEs, Order 2012 (25 Mar 2022) · 2022
2. 02

   Get a Class 3 digital signature certificate (DSC)

   E-tender portals ask you to sign and encrypt your bid with a Class 3 DSC on a USB e-token. You must appear before a Registration Authority to prove your identity.

   How to do itClose

   1. Buy a Class 3 DSC from a licensed Certifying Authority or its authorised vendor.
   2. CPPP says the approximate cost is ₹2,000 to ₹3,000 depending on validity, and issue takes 3 to 7 days.
   3. Once a DSC is mapped to a portal account it cannot be remapped to another account; it can only be inactivated.
   4. On GeM, documents and transactions can be verified by OTP, e-sign or a digital signature.

   Sources (1)

   1. CPPP eProcurement: FAQs on Digital Signature Certificate · 2026
3. 03

   Register as a seller on GeM

   GeM (Government e-Marketplace) is where central and many state buyers place orders. Registration is free.

   How to do itClose

   1. Keep ready: Aadhaar (or personal PAN) of the primary user with linked mobile, an active email, business PAN, CIN (companies only), bank account and IFSC, and registered address.
   2. Income tax returns of the last 3 years are needed to take part in bids if your business is older than 24 months.
   3. Optional: Udyam number (MSE EMD exemption in bids) and DPIIT number (startups).
   4. A partnership firm registers with the constitution 'firm'. Use the organisation PAN; only a proprietorship uses the individual's PAN.
   5. After the primary user, add secondary users and give them roles such as bid participation, order fulfilment or catalogue.

   Sources (1)

   1. GeM: Seller FAQs · 2026
4. 04

   List your products: OEM or reseller, brand approval, vendor assessment

   For each product you upload you must say whether you are the OEM (maker) or a reseller. Many categories also need brand approval and a vendor assessment.

   How to do itClose

   1. You can be both an OEM and a reseller, but you choose one role per product.
   2. In some categories (Quadrant 1 and 2 under GeM's CMS 2.0) only OEMs or their authorised resellers may sell.
   3. Brand approval needs vendor assessment or vendor assessment exemption in that category; a registered brand needs a trademark certificate, an unregistered brand a notarised undertaking. GeM says processing takes 4 working days.
   4. Vendor assessment is done by a third-party agency (currently RITES Limited). The fee is in GeM's Vendor Validation Policy; up to 40 categories fit in one application.
   5. If you choose India as country of origin, you declare the Make in India (MII) local content of the product.

   Sources (1)

   1. GeM: Seller FAQs · 2026
5. 05

   Know how GeM buyers buy: direct purchase, L1, bid and reverse auction

   The order value decides the buying mode, so price and stock your listings with that in mind.

   How to do itClose

   1. Direct purchase: orders up to ₹50,000 from any seller meeting the specification (no limit for automobiles).
   2. L1 purchase: ₹50,000 to ₹10 lakh, after comparing at least three OEMs or service providers; the lowest (L1) gets the order.
   3. Above ₹10 lakh the buyer must use a bid or a reverse auction (RA).
   4. A product stays valid in a buyer's cart for 10 days. If you reject or fail to accept a direct or L1 order in time, your stock is set to zero for 15 days.
   5. In an RA, a price entered in the last 15 minutes extends the RA by 15 minutes, any number of times.

   Sources (1)

   1. GeM: Buyer FAQs · 2026
6. 06

   Know GeM's charges

   Registering is free. Charges start only when you sell above certain values.

   How to do itClose

   1. Registration: no charge.
   2. Caution money (a refundable deposit introduced in 2020) was discontinued in 2025; sellers can withdraw earlier deposits from the seller dashboard.
   3. Annual Milestone Charge: flat ₹10,000 plus GST once your merchandise value crosses ₹20 lakh in a financial year.
   4. Transaction charges are payable in addition, as per GeM's revenue policy; check the current slab on GeM.
   5. TDS at 2% is deducted on these charges once their total crosses ₹30,000 in a financial year.
   6. Vendor assessment fee: as per GeM's Vendor Validation Policy.

   Sources (1)

   1. GeM: Seller FAQs · 2026
7. 07

   Take part in GeM bids and reverse auctions

   Bids carry the MSE and Make in India preferences, EMD and performance security conditions. Read them before you quote.

   How to do itClose

   1. EMD applies when the estimated bid value is above ₹5 lakh, for both products and services. Udyam-registered MSEs and eligible DPIIT startups are exempt.
   2. You can raise a representation against bid terms once per bid: within 1 day for 3–5 day bids, 2 days for 6–9 day bids and 4 days for bids of 10 days or more.
   3. When a bid moves to RA, the L1 price of the bid becomes the RA reference price. MSE bidders within L1 + 15% and MII bidders within L1 + 20% can join the RA when L1 is not MSE/MII.
   4. If the buyer asks the L1 seller to negotiate, you upload a revised BOQ with all-inclusive prices.
   5. Performance security (ePBG) can apply at any bid value.

   Sources (1)

   1. GeM: Seller FAQs · 2026
8. 08

   Enrol on CPPP and your state's e-procurement portal

   Tenders outside GeM (works, large or special purchases) are published on the Central Public Procurement Portal (CPPP), on state portals and on PSU portals. Most use the NIC GePNIC software, so the steps are the same everywhere.

   How to do itClose

   1. Do online bidder enrolment on the portal, then log in and register your DSC e-token.
   2. Download the tender schedule; NIC portals let tenderers download it free of cost.
   3. Upload standing documents (certificates, past purchase orders) to your portal account in advance so you can attach them to any bid.
   4. Use the portal's server clock (IST) for all deadlines, and submit well before the end time.

   Sources (1)

   1. CPPP eProcurement: Special instructions to contractors/bidders · 2026
9. 09

   Consider NSIC Single Point Registration

   NSIC enlists micro and small manufacturers and service providers under its Single Point Registration Scheme (SPRS) for government purchases. The procurement policy itself applies to all Udyam-registered MSEs, so check whether a tender asks for SPRS.

   How to do itClose

   1. Apply online at nsicspronline.com with your Udyam number; traders, commission agents and makers of medicines and drugs (except Ayurvedic, Unani, Siddha and Homoeopathic medicines) are not eligible.
   2. Benefits listed by NSIC: free tender sets, EMD exemption and the L1 + 15% purchase preference.
   3. The fee depends on turnover in your latest audited balance sheet; units in the North East get 20% off the fee. A third-party inspection is part of the process.
   4. The certificate is valid for 2 years; renew up to 6 months before expiry for 50% off the renewal fee.
   5. Units in production for under a year can get a provisional certificate for one year with a monetary limit of ₹5 lakh.

   Sources (1)

   1. NSIC: Single Point Registration Scheme (SPRS) · 2026
10. 10

    Read the tender document carefully

    Most rejections come from missed conditions. Read the whole notice and every corrigendum before you prepare the bid.

    How to do itClose

    1. Check the type of tender: advertised (open), limited, two-stage, single or electronic reverse auction.
    2. Read the pre-qualification (eligibility) criteria: turnover, experience, certificates. Check whether MSE or startup relaxation is allowed.
    3. Note the EMD, tender fee, performance security, delivery period, payment terms and the bid end date and time.
    4. In a two-bid tender the technical bid is opened first; the financial bid is opened only for those who qualify.
    5. Use the pre-bid meeting or the portal's clarification option for doubts, and watch for corrigenda.

    Sources (1)

    1. Startup India: Public procurement for startups · 2026
11. 11

    Keep the usual documents ready

    Each tender lists its own documents. These are the ones the official portals most often ask for; the tender document always prevails.

    How to do itClose

    1. Business PAN, GST registration, CIN or partnership deed, and the registered address proof.
    2. Udyam registration certificate (and SC/ST or woman status in it) to claim MSE benefits; DPIIT certificate for startup benefits.
    3. Income tax returns and audited balance sheets for the turnover criterion (GeM asks for 3 years of ITRs if the business is older than 24 months).
    4. Past purchase or work orders and completion certificates for the experience criterion.
    5. Make in India local content declaration or certificate where the tender asks for it.
    6. OEM authorisation letter if you are a reseller; product certificates (BIS and others) named in the specification.
    7. EMD instrument or proof of exemption.

    Sources (1)

    1. GeM: Seller FAQs · 2026
12. 12

    Submit and freeze the bid online

    A bid on an NIC portal counts only after you click 'Freeze Bid'. Keep the bid summary as your proof.

    How to do itClose

    1. Fill the BOQ template only in the allowed cells; a modified or replaced BOQ can get the bid rejected.
    2. Upload documents in the formats the tender allows (PDF, XLS, RAR, DWF on CPPP); scanning at 75–100 DPI keeps files small.
    3. If EMD is paid offline, the physical instrument and the scanned copy must match, and the original must reach the tender inviting authority before the deadline.
    4. Click 'Freeze Bid'; unfrozen bids are treated as incomplete.
    5. Print the bid summary: it is your acknowledgement and your entry to the bid opening.

    Sources (1)

    1. CPPP eProcurement: Special instructions to contractors/bidders · 2026
13. 13

    Deliver, invoice and get paid on GeM

    Payment on GeM follows the consignee's acceptance certificate. GeM has its own route for chasing late payment.

    How to do itClose

    1. Accept the contract, generate the invoice, and get the consignee's receipt and acceptance certificate (CRAC) or service delivery acceptance certificate (SDAC).
    2. If payment is pending 10 days after CRAC/SDAC, raise a delay incident; once it shows 'Took Action', file a pending payment complaint with the contract, CRAC/SDAC and invoice.
    3. GeM escalates up to a demi-official letter to the buyer's senior officers; after that, wait 7 working days and then use the dispute clause (Clause 16) of GeM's terms.
    4. GeM marks buyers with many unpaid orders more than 70 days after CRAC with an orange or red payment status, so check a buyer's status before you bid.

    Sources (1)

    1. GeM: Seller FAQs · 2026
14. 14

    Use the 45-day payment law

    The MSMED Act gives micro and small suppliers a 45-day payment limit, with interest and a state council to decide disputes.

    How to do itClose

    1. Under the MSMED Act, 2006 (Section 16), a buyer who does not pay within 45 days of acceptance owes compound interest with monthly rests at three times the RBI bank rate.
    2. File a delayed payment case with your state's MSE Facilitation Council (MSEFC) through the MSME ODR portal (odr.msme.gov.in). Any MSE with valid Udyam registration can apply.
    3. The council should decide within 90 days. A buyer who appeals against the award must first deposit 75% of the award amount.

    Sources (1)

    1. MSME Samadhaan: Delayed payments under the MSMED Act, 2006 · 2026