Who needs this
- Manufacturers and service businesses that want MSME benefits such as protection against delayed payments.
- Suppliers to large companies or government departments that ask for an MSME certificate.
- Businesses applying for bank loans under priority sector lending or government schemes.
- Proprietors, partnership firms, LLPs, companies, trusts and societies running an enterprise.
- Retail and wholesale traders, for priority sector lending.
Classification
An enterprise is classified as micro, small or medium using two tests together: investment in plant and machinery or equipment, and annual turnover. The limits were revised by the Ministry of MSME with effect from 1 April 2025 (notification S.O. 1364(E) dated 21 March 2025). Investment and turnover figures are taken from the income tax return and GST returns linked to the PAN, so these must be correct before registration.
Documents usually needed
- Aadhaar of the proprietor, managing partner, karta or authorised director, with mobile number linked for OTP
- PAN of the enterprise and GSTIN, where applicable
- Name and address of the enterprise and of each unit or plant
- Date of commencement of business
- Bank account number and IFSC
- Main activity, with National Industrial Classification (NIC) codes
- Number of employees, investment and turnover figures
How it works
- Your activity and figures are checked to confirm eligibility and classification.
- Aadhaar is verified by OTP on udyamregistration.gov.in, followed by PAN validation.
- Enterprise details, units, bank account and NIC codes are filled in.
- The form is submitted with a final OTP; the Udyam Registration Number is issued.
- The certificate is downloaded and shared with your bank and buyers.
Key points on dates
| What | Rule | Source |
|---|---|---|
| Renewal | Not required; update details when they change | udyamregistration.gov.in |
| Payment by buyers to micro and small enterprises | Within the agreed period, not exceeding 45 days | udyamregistration.gov.in |
| Revised classification limits | From 1 April 2025 | udyamregistration.gov.in |
Frequently asked questions
Is there a government fee for Udyam registration?
The government portal udyamregistration.gov.in states that registration is without any fee. Be careful of websites that look like the government portal and ask for payment. Registration needs only the Aadhaar of the proprietor, partner or director, and details of the enterprise.
Which businesses count as micro, small or medium?
Classification is based on both investment in plant and machinery or equipment, and annual turnover, under limits notified by the Ministry of MSME. Turnover from exports is excluded. The limits were revised from 1 April 2025, so check the current notification on the Udyam portal before classifying.
Can a trader get Udyam registration?
Retail and wholesale traders can register on the Udyam portal for the limited purpose of priority sector lending, as allowed by the Ministry of MSME. Other benefits meant for manufacturing and service enterprises may not apply to traders. The portal shows the available options when you select the activity.
What benefits does Udyam registration give?
Registered micro and small enterprises are protected by the rules on delayed payments from buyers, including interest on late payments and a facilitation council for disputes. Registration also helps with priority sector bank loans, government tender preferences and various state and central schemes, subject to each scheme's conditions.
Do I need to renew Udyam registration?
Udyam registration does not need renewal. However, the details must be kept up to date. Information on investment and turnover is taken from income tax and GST records, and the classification can change when these figures change. Update the registration when the business details change.