Udyam (MSME) Registration — Free Online Process
Updated June 2026 · VerifiedWhat Is Udyam Registration?
Udyam Registration is the official MSME registration system introduced by the Government of India in July 2020, replacing the earlier Udyog Aadhaar Memorandum (UAM). It is a permanent, paperless, and completely free online registration on the Udyam portal. Once registered, the enterprise receives a Udyam Registration Number (URN) and an e-certificate.
How to Register for Udyam Online?
- Visit the Portal — Go to udyamregistration.gov.in.
- Select Registration Type — Choose “For New Entrepreneurs who are not registered yet as MSME” or “For those already having registration as UAM.”
- Enter Aadhaar Number — Enter the proprietor’s/partner’s/director’s Aadhaar number and name as per Aadhaar.
- Validate via OTP — OTP is sent to the Aadhaar-linked mobile number.
- Enter PAN & GSTIN — PAN is auto-validated with CBDT; GSTIN details are fetched from GST portal.
- Fill Enterprise Details — Enter business name, type, address, bank details, NIC code, investment, and turnover figures.
- Submit and Get URN — The system generates a Udyam Registration Number (URN) and e-certificate instantly.
What Is the MSME Classification?
| Category | Investment (Plant & Machinery) | Annual Turnover |
|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹5 crore |
| Small Enterprise | Up to ₹10 crore | Up to ₹50 crore |
| Medium Enterprise | Up to ₹50 crore | Up to ₹250 crore |
Both criteria (investment and turnover) must be met. The classification applies equally to manufacturing and service enterprises.
What Are the Benefits of Udyam Registration?
- Priority Sector Lending — Banks must classify MSME loans as priority sector, ensuring easier credit access.
- GeM Registration — Registered MSMEs can sell goods and services to the government via the Government e-Marketplace (GeM).
- CGTMSE Coverage — Collateral-free loans up to ₹5 crore under the Credit Guarantee Fund Trust for Micro & Small Enterprises.
- Delayed Payment Protection — Buyers must pay MSMEs within 45 days; compound interest applies on delayed payments.
- Subsidy on Patent/Trademark — Up to 50% subsidy on patent and trademark registration fees.
- Tax Benefits — Eligible for various government schemes, subsidies, and tax exemptions.
- Tender Preference — Reservation in government tenders and procurement.
Who Is Eligible for Udyam Registration?
Any business entity — proprietorship, partnership, LLP, private limited company, trust, or cooperative — engaged in manufacturing or service activities with investment and turnover within MSME limits is eligible. There are no restrictions based on the type of business entity.
Frequently Asked Questions
Is Udyam registration really free?
Yes. Udyam registration is 100% free on the government portal udyamregistration.gov.in. No fees are charged. Avoid third-party websites that charge for this free service.
What is the difference between Udyam and Udyog Aadhaar?
Udyam Registration replaced Udyog Aadhaar Memorandum (UAM) from 1 July 2020. The key differences are: Udyam is linked to PAN and GSTIN for automated classification; it considers both investment and turnover; and it is a permanent registration without renewal.
Do I need GST registration for Udyam?
PAN and GSTIN are mandatory for enterprises with turnover above the GST threshold. However, enterprises exempt from GST can register with just PAN. Micro enterprises without PAN can register with Aadhaar only.
Is Udyam registration valid for a lifetime?
Yes. Udyam registration is permanent and does not require renewal. However, the classification (Micro/Small/Medium) is updated automatically based on ITR and GST data filed by the enterprise.
Can I update my Udyam registration details?
Yes. You can update your details by visiting the Udyam portal, entering your URN, and verifying via OTP. Changes to address, bank details, NIC code, investment, and turnover can be made anytime.
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