MSME / Udyam Registration —
Free, Aadhaar-Based, in Minutes
The revised MSME classification limits (effective 1 April 2025), the completely free Udyam registration process on the official portal, the certificate you receive and the real benefits — collateral-free credit, the 45-day payment rule and government procurement.
MSME (Udyam) registration is a free, paperless online process on the official portal udyamregistration.gov.in using only your Aadhaar + PAN — the system auto-fetches your PAN, ITR and GST data, so no documents are uploaded. You instantly get a permanent Udyam Registration Number (URN) and a downloadable certificate that unlocks collateral-free credit, priority-sector lending, government procurement and the 45-day payment protection. There is no government fee — ignore third-party sites charging Rs 500–5,000.
Budget 2025 raised the classification thresholds — investment limits by 2.5 times and turnover limits by 2 times. So a business can now be far larger and still count as an MSME. The classification for FY 2024-25 (AY 2025-26) used the earlier limits; the new limits apply from 1 April 2025 onward.
MSME Classification Limits (Revised 1 April 2025)
Classification uses a composite criterion — both investment in plant & machinery / equipment and annual turnover must be within the limit. If either is crossed, the enterprise moves to the next higher category. The same limits apply to both manufacturing and service enterprises.
| Category | Investment in P&M / Equipment | Annual Turnover |
|---|---|---|
| Micro | Up to Rs 2.5 crore | Up to Rs 10 crore |
| Small | Up to Rs 25 crore | Up to Rs 100 crore |
| Medium | Up to Rs 125 crore | Up to Rs 500 crore |
Revised limits effective 1 April 2025 (Budget 2025) — investment 2.5x and turnover 2x the earlier thresholds. Export turnover is excluded when computing the turnover limit.
How to Register on the Udyam Portal
The whole process is online at udyamregistration.gov.in and takes under 15 minutes if your Aadhaar is linked to your mobile. Existing UAM / Udyog Aadhaar holders must re-register on Udyam.
- Aadhaar of the authorised person
- PAN of the enterprise / proprietor
- Mobile linked to Aadhaar (for OTP)
- GSTIN if already registered
- Bank account details (for scheme benefits)
- NIC code for the main activity
- Number of employees
- Date of commencement of business
Udyam registration carries no government fee. Many private sites clone the look of the official portal and charge Rs 500–5,000 for "MSME registration". Register only at udyamregistration.gov.in, or use a trusted advisor if you want it done for you.
Want your Udyam certificate handled end-to-end?
Get Registration Help →Key Benefits of Udyam Registration
A Udyam certificate is the gateway to MSME-specific credit, procurement and legal protections.
| Benefit | Scheme / Authority | What you get |
|---|---|---|
| Collateral-free credit | CGTMSE | Guarantee cover on loans (enhanced ceiling, now up to Rs 5 crore) for micro & small units |
| Priority-sector lending | RBI mandate | MSMEs count within banks' priority-sector targets — easier, cheaper credit |
| Government procurement | MSME / GeM | Share of central procurement reserved for MSMEs; sub-quotas for women- & SC/ST-owned units |
| Tender preference | MSE Order | EMD exemption and purchase preference in government tenders |
| Delayed-payment protection | MSME Samadhaan | Buyer must pay within 45 days; else compound interest at 3x the RBI bank rate |
| Subsidies & support | State & central | ISO/trademark reimbursement, interest subvention and state MSME incentives |
CGTMSE cover and scheme parameters are periodically revised — confirm the current ceiling with your lender.
Not sure which benefits your business can claim?
Talk to a TaxClue Expert →The 45-Day Payment Rule & Section 43B(h)
Under the MSMED Act, a buyer must pay a registered micro or small enterprise within 45 days (or 15 days if there is no written agreement). Late payment attracts compound interest at three times the RBI bank rate. Since a Finance Act 2023 change, this rule also bites the buyer's income tax.
From AY 2024-25, Section 43B(h) disallows a buyer's expense to a micro/small MSME supplier unless it is actually paid within the 45/15-day limit — the deduction is deferred to the year of payment. This makes registering (as a supplier) valuable and makes on-time payment (for buyers) a tax issue, not just a cash-flow one.
Delayed-payment disputes can be filed on the MSME Samadhaan portal, which routes them to the state Micro & Small Enterprises Facilitation Council (MSEFC) for conciliation and, if needed, arbitration. Awards are enforceable as decrees, and the protection covers even large buyers and PSUs.
Facing delayed payments or worried about 43B(h)?
Get MSME Compliance Help →MSME / Udyam Registration — Frequently Asked Questions
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Get Your Udyam Certificate — Done Right
Our team registers your enterprise on the official Udyam portal with the correct classification and NIC codes, links GST where needed, and helps you claim CGTMSE credit, procurement benefits and 45-day payment protection — 100% online, across India.