Udyam registration is the free, online MSME registration run by the Ministry of Micro, Small and Medium Enterprises. It needs only Aadhaar and PAN, takes about 15 minutes and gives your business a permanent Udyam number and certificate. That certificate unlocks priority-sector loans, protection against late payments and benefits in government tenders. This guide covers who can register, the 2025 MSME limits, each step and common traps.
Quick answer
Where: only udyamregistration.gov.in. It is free; sites that charge a fee are not government sites.
What you need: Aadhaar of the proprietor, managing partner, karta or authorised signatory, the enterprise’s PAN, and GSTIN if the business must be registered under GST.
Who qualifies (from 1 April 2025): micro up to ₹2.5 crore investment and ₹10 crore turnover; small up to ₹25 crore and ₹100 crore; medium up to ₹125 crore and ₹500 crore.
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What is Udyam registration?
Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), an enterprise is classified as micro, small or medium by its investment in plant, machinery or equipment and its annual turnover. Since 1 July 2020, the only way to register as an MSME is Udyam registration. It replaced Udyog Aadhaar and EM-II; old registrations are no longer valid for MSME benefits and must be moved to Udyam.
Udyam registration is self-declared and paperless. The portal fetches your investment and turnover from income tax and GST records using your PAN, so the classification is updated automatically each year.
MSME limits for Udyam registration
| Category | Investment in plant, machinery or equipment | Annual turnover |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
These limits apply from 1 April 2025 (notification S.O. 1364(E) of 21 March 2025). Both tests apply: if either limit is crossed, the enterprise moves to the next category. Export turnover is not counted in turnover. All GSTINs under one PAN are treated as one enterprise.
Who can apply for Udyam registration?
- Proprietorships, partnership firms, LLPs, companies, HUFs, co-operatives, societies and trusts engaged in manufacturing or services.
- Retail and wholesale traders can register, but only for priority-sector lending benefits.
- Informal micro units without PAN or GST (street vendors, artisans, home businesses) can get a Udyam Assist certificate through a bank, NBFC or other designated agency on the Udyam Assist Platform.
- One enterprise gets one Udyam registration; add all activities and units (plants, branches) in the same registration.
Udyam registration step by step
- Open the portal. Go to udyamregistration.gov.in and choose For New Entrepreneurs who are not Registered yet as MSME.
- Verify Aadhaar. Enter the Aadhaar number and name of the proprietor, managing partner, karta or authorised signatory and validate with OTP.
- Validate PAN. Select the type of organisation and enter PAN. The portal fetches ITR and GST details. Companies, LLPs and firms must enter the organisation’s PAN.
- Fill the details. Enterprise name, units and addresses, date of commencement, bank account, NIC codes for your activities, and number of employees.
- Check investment and turnover. Pre-filled figures come from ITR and GST; if you have not filed yet, declare them on a self-declaration basis.
- Submit. Agree to the declaration, submit with the final OTP and note the reference number. The Udyam certificate (with a QR code) is e-mailed and can be printed from the portal.
Udyam registration fees and timelines
| Item | Position |
|---|---|
| Government fee | Nil (free) |
| Documents to upload | None; details are verified online |
| Time | Usually the same day; certificate by email |
| Validity | Permanent; no renewal, but keep details updated |
| Registration number format | UDYAM-XX-00-0000000 |
Benefits of Udyam registration
- Faster payment from buyers: a buyer must pay a micro or small supplier within the agreed period, and never later than 45 days after acceptance (MSMED Act s.15). Late payment carries compound interest at three times the RBI bank rate (s.16). You can file a claim with the MSE Facilitation Council (s.18) through the MSME ODR portal (odr.msme.gov.in), which replaced the Samadhaan portal for new cases on 15 October 2025.
- Tax rule that helps you get paid: under income tax law, businesses can deduct amounts owed to micro and small enterprises only when they pay within the MSMED Act time limit.
- Easier credit: priority-sector lending, collateral-free loans under the CGTMSE scheme and interest subvention schemes.
- Government tenders: purchase preference and exemption from earnest money deposits for micro and small enterprises under the Public Procurement Policy, and easier onboarding on GeM.
- Other schemes: subsidies on patents and trademarks, ZED certification, and state industrial policy incentives.
Udyam registration for different kinds of business
Udyam registration is linked to the PAN of the enterprise, so who applies depends on how your business is set up:
- Proprietorship: the proprietor applies with their own Aadhaar; the enterprise uses the proprietor’s PAN.
- Partnership firm: the managing partner applies with their Aadhaar and the firm’s PAN.
- LLP or company: an authorised partner or director applies with their Aadhaar and the LLP’s or company’s PAN.
- Trust, society or HUF: the authorised signatory or karta applies with the entity’s PAN.
One enterprise gets one Udyam registration. If you have several factories, shops or activities, add them as units and NIC codes in the same Udyam registration instead of applying again.
Updating or cancelling your Udyam registration
Log in on udyamregistration.gov.in with your Udyam registration number and the OTP sent to your registered mobile to update details such as address, bank account, activities or employees. Investment and turnover are taken from your income tax return and GST data, and your classification as micro, small or medium is reviewed each year from that data. If you close the business, use the cancellation option on the same portal so the certificate does not stay active.
Using Udyam registration to recover delayed payments
Udyam registration lets micro and small enterprises use the delayed-payment protection in the MSMED Act. A buyer must pay within the agreed period, and never later than 45 days from accepting the goods or services (section 15). If it pays late, it owes compound interest at three times the bank rate notified by the RBI (section 16). You can file a delayed-payment case online on the MSME ODR (Online Dispute Resolution) portal, which replaced the old Samadhaan portal for new cases on 15 October 2025. The case starts with online negotiation with the buyer; if that fails, it goes to the Micro and Small Enterprises Facilitation Council of your state for conciliation and, if needed, arbitration (section 18). Our MSME delayed payment guide walks through the complaint step by step. Mention your Udyam number on every invoice so buyers know the protection applies.
Common mistakes to avoid
- Paying a look-alike website. Udyam registration is free only on udyamregistration.gov.in.
- Registering twice for the same PAN, or separately for each branch.
- Choosing wrong NIC codes; benefits under some schemes depend on the activity code.
- Declaring figures that do not match ITR and GST. Misrepresentation can attract penalties under section 27 of the MSMED Act.
- Not updating the registration after a change of address, partners or activities.
Want it done for you?
Want Udyam registration, GST and your bank paperwork handled together? AdvisoNet, CIVL’s sister service run by Company Secretaries and Chartered Accountants, can do it for a fixed fee.
Frequently asked questions
Is Udyam registration free?
Yes. There is no government fee. Only udyamregistration.gov.in is official.
Is GST registration required for Udyam registration?
GSTIN is needed only if your business is required to register under GST. Others can register with PAN alone.
Do I need to renew Udyam registration?
No. It is permanent, but update the details on the portal when anything changes. Classification is updated automatically from ITR and GST data.
Can a trader get Udyam registration?
Yes. Retail and wholesale traders can register, but the benefit is limited to priority-sector lending.
How do I convert Udyog Aadhaar to Udyam registration?
Choose the option for existing Udyog Aadhaar holders on the portal, verify Aadhaar and complete the Udyam form. The old number stops being valid for benefits.
Can I have more than one Udyam registration?
No. One enterprise, identified by its PAN, can have only one Udyam registration. Add extra units, branches or activities inside the same registration.
Is Udyam registration useful for government tenders?
Yes. Micro and small enterprises with Udyam registration usually get benefits under the Public Procurement Policy, such as exemption from earnest money deposit, and can link their Udyam number on the GeM portal.
What happens if my turnover crosses the limit after Udyam registration?
Your classification is updated automatically from your ITR and GST data, for example from micro to small. You keep the same Udyam registration number. Benefits tied to the old category may change from the next financial year.
Can I do Udyam registration without GST?
Yes, if your business does not need GST registration under the GST law. The portal lets you proceed without a GSTIN, but you must add it once you register under GST.
Is Udyam registration valid for life?
Yes. A Udyam registration certificate has no expiry date and needs no renewal. Keep your details updated, and your classification will be revised automatically from ITR and GST data.
Where can I get a ready-to-use NOC or partnership deed for registration?
Use CIVL’s NOC from property owner format for your business address and the partnership deed format if you run a firm.
CIVL format
Papers for your business address
Use CIVL’s NOC from property owner, commercial lease agreement or partnership deed formats, or Ask CIVL.