Udyam Registration is the Government of India's free MSME registration, done online at udyamregistration.gov.in. It needs only an Aadhaar number and PAN (GSTIN where applicable) and is self-declaration based — no documents are uploaded. You instantly get a permanent Udyam Registration Number (URN) and e-certificate. From 1 April 2025 the Micro/Small/Medium limits were raised (Micro now up to Rs 2.5 crore investment and Rs 10 crore turnover). Beware private sites that charge for this free service.
Budget 2025 raised MSME thresholds: investment limits by 2.5x and turnover limits by 2x. This lets larger businesses keep MSME status and benefits. Existing Udyam certificates stay valid and are re-classified automatically from ITR and GST data — you do not need to re-register.
MSME Classification (Effective 1 April 2025)
An enterprise is classified as Micro, Small or Medium on a composite basis — both the investment in plant, machinery or equipment and the annual turnover must stay within the limit. Cross either one and you move to the next category. The same limits apply to manufacturing and service enterprises.
| Category | Investment (P&M / equipment) | Annual turnover | Both must be met |
|---|---|---|---|
| Micro | Up to Rs 2.5 crore | Up to Rs 10 crore | Yes |
| Small | Up to Rs 25 crore | Up to Rs 100 crore | Yes |
| Medium | Up to Rs 125 crore | Up to Rs 500 crore | Yes |
Revised limits notified for FY 2025-26 (up from Micro Rs 1cr/Rs 5cr, Small Rs 10cr/Rs 50cr, Medium Rs 50cr/Rs 250cr). Exports are excluded from the turnover computation.
How to Register for Udyam Online
The whole process is paperless and usually takes under 15 minutes. You do not upload any documents — PAN is verified with the Income-tax database and GSTIN (if any) with the GST portal automatically.
- 1Open portaludyamregistration.gov.in
- 2Enter AadhaarProprietor / partner / director
- 3Validate OTPAadhaar-linked mobile
- 4Add PAN & GSTINAuto-verified with CBDT / GST
- 5Get URNInstant number & e-certificate
Enter your NIC activity code, investment and turnover figures and bank details, then submit. For informal micro enterprises without PAN or GST, register through the Udyam Assist Platform (UAP) via designated agencies using Aadhaar only.
The government charges no fee at any stage. Many private websites mimic the official portal and charge Rs 500–5,000 for this free service. Always use udyamregistration.gov.in, or a trusted advisor who is transparent that the government fee is nil and only charges for assistance.
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Nothing is uploaded, but keep these details ready — the portal self-declares and cross-checks them against Aadhaar, PAN and GST databases.
- Aadhaar number of proprietor / partner / director
- PAN of the enterprise (mandatory for non-proprietorship)
- GSTIN (where GST registration is required)
- Business name, type and commencement date
- NIC code for the main business activity
- Investment in plant, machinery or equipment
- Previous-year annual turnover
- Bank account number and IFSC
- Registered office address
- Number of employees
Who Is Eligible for Udyam Registration
Any business engaged in manufacturing or services within MSME limits can register — there is no restriction by entity type.
- Proprietorships — Aadhaar of the proprietor
- Partnership firms & LLPs — Aadhaar of the managing partner + firm PAN
- Companies — Aadhaar of an authorised director + company PAN
- HUFs, trusts, societies and co-operatives — Aadhaar of the karta / authorised signatory
An enterprise files one Udyam Registration; all activities (manufacturing and services) are clubbed under a single URN. A second registration on the same PAN is not allowed — add extra activities to the existing registration instead.
Benefits of Udyam Registration
A URN unlocks a range of statutory protections, credit and procurement benefits available only to registered MSMEs.
| Benefit | What you get |
|---|---|
| Delayed-payment protection | Buyers must pay MSMEs within 45 days; compound interest at 3x bank rate on delay (MSMED Act s.15–16). Buyer's deduction is disallowed under Section 43B(h) if unpaid. |
| Priority-sector lending | Banks classify MSME loans as priority sector — easier, often cheaper credit. |
| CGTMSE collateral-free loans | Credit guarantee cover on loans up to Rs 10 crore for micro & small enterprises. |
| GeM & tender preference | Sell to government on GeM; reservation and price preference in public tenders. |
| Subsidies & rebates | Up to 50% subsidy on patent / trademark fees and various state MSME schemes. |
Some benefits require the enterprise to be Micro or Small; Medium enterprises get a narrower set.
If your buyer does not pay a registered Micro or Small enterprise within 45 days, the buyer cannot deduct that expense until it is actually paid (Section 43B(h), Income-tax Act). This gives registered MSME suppliers real leverage to get paid on time.
Filing your ITR or GST returns alongside Udyam? Let TaxClue handle it end to end.
Talk to a TaxClue Expert →- Official portal: udyamregistration.gov.in
- Ministry of MSME: msme.gov.in
- Revised classification: MSME notification effective 1 April 2025 (Budget 2025)
- Delayed payments: MSMED Act 2006 s.15–16 & Section 43B(h), Income-tax Act
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.