Udyam (MSME) registration: limits, documents and steps

✓Checked against official sources · verified 30 October 2026

Who can register on Udyam

Any enterprise engaged in manufacturing or providing services can register, whatever its legal form: proprietorship, Hindu Undivided Family (HUF), partnership firm, LLP, company, co-operative society, society or trust. Under the Ministry of MSME's guidelines, retail and wholesale traders can also register, but their MSME status is limited to Priority Sector Lending benefits from banks.

An enterprise can hold only one Udyam registration. If you carry on several activities (for example, manufacturing and services), you add all of them to the same registration. All units under the same PAN are treated as one enterprise and their investment and turnover figures are added together.

Very small informal micro units that do not have a PAN or GSTIN can get an Udyam Assist Certificate through the separate Udyam Assist Platform (run with SIDBI through designated agencies). Banks treat that certificate as equivalent to Udyam for priority sector lending.

MSME classification limits (in force from 1 April 2025)

Classification uses a composite test of investment in plant and machinery or equipment and annual turnover. The Ministry of MSME raised both limits by notification S.O. 1364(E) dated 21 March 2025, effective 1 April 2025.

Both conditions must be met. If you cross either limit, you move to the next category. For example, a unit with ₹8 crore turnover but ₹3 crore investment in machinery is a small enterprise, not micro.

• Investment means plant and machinery or equipment only. Land, building and furniture are excluded. It is linked to your past income-tax returns; a new enterprise declares the purchase value excluding GST.
• Turnover excludes exports of goods and services. It is linked to your income-tax and GST data through PAN and GSTIN.

What you need

• Aadhaar number: of the proprietor (proprietorship), the managing partner (partnership firm) or the karta (HUF). For a company, LLP, co-operative, society or trust, the authorised signatory gives Aadhaar along with the organisation's PAN and GSTIN. An OTP is sent to the mobile number linked with Aadhaar.
• PAN: mandatory since 1 April 2021. Investment and turnover figures are pulled from government databases linked to PAN.
• GSTIN: needed where the enterprise is required to be registered under the CGST Act, 2017. A business that is not liable to GST registration can still register on Udyam (notification S.O. 1055(E) dated 5 March 2021).
• Basic details: business name and address, bank account, main activity (NIC code), number of employees, date of commencement.

No documents are uploaded. Registration is based on self-declaration.

Step-by-step on the official portal

1. Open the official portal, udyamregistration.gov.in, and choose the option for new entrepreneurs who are not yet registered as MSME.
2. Enter the Aadhaar number and name, give consent, and validate with the OTP.
3. Select the type of organisation and enter the PAN. The portal validates PAN details automatically.
4. Fill in the business details: name, units and locations, official address, bank details, NIC activity code, employees, and investment and turnover where asked (much is pre-filled from PAN and GST data).
5. Check the self-declaration, submit, and complete the final OTP.
6. The Udyam Registration Number is issued, and the e-certificate with a dynamic QR code is available online.

Benefits of Udyam registration

• Protection against delayed payments (micro and small only): under sections 15 and 16 of the MSMED Act, buyers must pay within the agreed period, which cannot exceed 45 days. Late payments attract compound interest with monthly rests at three times the RBI bank rate, and disputes can go to the state's Micro and Small Enterprises Facilitation Council.
• Income-tax link: under section 37(2)(g) of the Income-tax Act, 2025 (earlier section 43B(h)), a buyer can claim a deduction for an amount owed to a micro or small enterprise beyond the MSMED Act time limit only in the year it is actually paid. This gives buyers a strong reason to pay registered suppliers on time.
• Bank finance: loans to registered MSMEs qualify as priority sector lending, and collateral-free credit guarantee cover is available through CGTMSE subject to its terms.
• Government schemes and procurement: many central and state schemes, subsidies and public procurement preferences ask for an Udyam number.

Updating your registration and the certificate

The registration number is permanent and there is no renewal. You should, however, update your Udyam details online (including income-tax return and GST details for the previous year) whenever something changes. If figures go up and the enterprise crosses into a higher category, the rules let it continue in its existing category for one year before the move; if figures go down, the lower category applies from 1 April of the next financial year. Failure to update can lead to suspension of status. You can log in on the portal with your Udyam number and the OTP to update details and print or verify the certificate.

Frequently asked questions

How TaxEase can help

We can check your MSME category, prepare the details for registration on the official portal with you, and keep your Udyam, GST and income-tax figures consistent. If you also need GST, see our GST registration in Vapi and free GST registration online pages, or browse all services. For any question, contact us.