Udyam Registration (MSME Registration) Online
Udyam registration is the government’s free, online identity for micro, small and medium enterprises. Banks, buyers and government schemes ask for it before they extend MSME benefits. Since 1 April 2025 a micro enterprise can have up to ₹2.5 crore in investment and ₹10 crore in turnover.
What it is
Udyam registration tells the government, banks and your buyers that your business is a micro, small or medium enterprise. You get a permanent Udyam Registration Number and an e-certificate. There is no renewal; you simply keep the details current.
The registration flows from the Micro, Small and Medium Enterprises Development Act, 2006 and the Ministry of MSME notification of 26 June 2020 (S.O. 2119(E)). It is filed on udyamregistration.gov.in, the only official portal. The process is paperless and based on self-declaration. Investment and turnover figures are pulled from your PAN-linked income tax returns and GST data.
MSME limits from 1 April 2025
The limits were raised with effect from 1 April 2025. An enterprise must stay within both the investment and the turnover limit for a category. If it crosses either one, it moves to the next category.
| Category | Investment in plant, machinery or equipment | Annual turnover |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
Two details catch people out. Export turnover is left out of the turnover count. And all units under the same PAN are added together, so a business cannot split itself to stay small.
In practice, the higher limits have moved many firms down a category. A Faridabad component maker that was classed as medium a few years ago may now sit comfortably in small, which brings back the 45-day payment protection. If your registration still shows the old category, it is worth updating.
Who it applies to
Manufacturers
Factories and workshops of any size up to the medium limits, from a small fabrication shop to a mid-sized component maker.
Service businesses
IT firms, consultants, transporters, repair and maintenance businesses, clinics and other service providers within the limits.
Every business structure
Proprietorships, partnership firms, LLPs and companies can all register. A company or LLP registers in its own PAN, not in a director’s or partner’s name.
Why it matters
Get paid within 45 days
Under section 15 of the MSMED Act, a buyer must pay a micro or small supplier within 15 days, or within the agreed date but never beyond 45 days. Late payment carries compound interest at three times the bank rate.
Borrow without collateral
Banks may not take collateral for loans up to ₹10 lakh to micro and small units, and CGTMSE cover extends to ₹10 crore without collateral. Loan decisions up to ₹25 lakh are due within 14 working days.
Pay lower fees, bid for tenders
A small enterprise pays ₹4,500 per class to e-file a trademark application instead of ₹9,000. Micro and small units also get preference under the public procurement policy.
Documents required
Identity
- Aadhaar of the proprietor, managing partner or authorised signatory, with linked mobile for OTP
- PAN of the business
Business details
- GSTIN, where you are registered under GST
- Address of the office and each plant or unit
- Bank account number and IFSC
- NIC codes for every activity
Figures
- Investment in plant, machinery or equipment
- Turnover and export turnover from the last ITR
- Number of employees
How it works
Confirm your category from the ITR
We look at your last return and fixed asset register to confirm whether you are micro, small or medium, and whether any older registration needs migrating.
Pick the right NIC codes
We map each activity you actually carry on to its NIC code. One registration can cover manufacturing and services together.
File on the Udyam portal
We fill the form with you on udyamregistration.gov.in. The Aadhaar holder confirms with an OTP, and PAN and GST data are verified online.
Put the certificate to work
You receive the Udyam number and e-certificate. We then put it to work on your invoices, your bank loan project report and tender profiles, and update it when your details change.
Timelines
When to register
Any time. A new business can register on day one on self-declared figures; there is no deadline, but benefits apply only once you are registered.
Buyer payment window
15 days from acceptance where nothing is agreed in writing, and never more than 45 days even with an agreement.
MSME-1 by your buyers
Companies that owe micro or small suppliers beyond 45 days report it in MSME-1 by 31 October (April–September) and 30 April (October–March).
What happens if you skip or neglect it
Late payments go unprotected
Here is the catch: without a registration, buyers have little reason to treat your bills as MSME dues. Since AY 2024-25, section 43B(h) lets them deduct late dues to micro and small suppliers only when actually paid.
Suspension for stale data
The portal requires you to keep information current. A registration that is not updated can be suspended, and the benefits stop with it.
Wrong category, wrong benefits
Self-declared figures are matched with ITR and GST data. If the figures differ, the portal goes by the government data, which can place you in a different category from the one you claimed.
Frequently asked questions
Is Udyam registration free?
Yes. Registration on udyamregistration.gov.in is completely free, and the portal itself warns that no fee is payable to anyone. Look-alike websites charge for the same form, so check the address bar. If you engage us, you pay only our professional fee for checking your category, choosing NIC codes and handling updates. The government charges nothing at any stage. You can register as soon as your PAN and Aadhaar are ready.
What are the current MSME limits?
From 1 April 2025, micro enterprises can have up to ₹2.5 crore in investment and ₹10 crore in turnover. Small enterprises go up to ₹25 crore and ₹100 crore, and medium enterprises up to ₹125 crore and ₹500 crore. Both tests apply together. Exports are left out of turnover. So a garment exporter in Faridabad that ships most of its output abroad may still qualify as micro or small. We check your figures before you file.
Do I need a separate registration for each unit?
No. The rules allow only one Udyam registration per enterprise. All your factories, branches and activities, whether manufacturing or services, go into that single registration under the same PAN. Filing a second registration is not permitted. If you ended up with more than one under the older Udyog Aadhaar system, we help you consolidate them so your bank and buyers see one clear number and category.
Does Udyam registration need to be renewed?
No. The Udyam Registration Number is permanent and there is no renewal. What you must do is keep the details current, especially after filing each income tax return and when your address, activities or ownership change. The portal can suspend a registration that is not updated. A short annual check after your ITR is filed keeps the certificate accurate and the benefits safe.
Can a proprietor without GST register?
Yes, if GST registration is not required for the business. GSTIN is mandatory only where the enterprise is liable to register under GST. A proprietor needs Aadhaar and PAN, and the PAN-linked return data is used for investment and turnover. If you later take a GST registration for your business, you add the GSTIN to your Udyam record. Many home-based service providers in Faridabad start exactly this way.
How does Udyam help with delayed payments?
A registered micro or small supplier must be paid within 15 days of acceptance, or within the agreed period up to a maximum of 45 days. Late payment carries compound interest at three times the bank rate notified by the RBI. Buyers also lose their income tax deduction under section 43B(h) until they pay. Quoting your Udyam number on invoices and contracts puts buyers on notice from the first bill.
Are traders covered by the payment protection?
Usually not. The 45-day payment rule and section 43B(h) cover micro and small manufacturers and service providers, and pure traders are generally kept outside them. Medium enterprises are also excluded from 43B(h). A trading business can still register and use Udyam for bank and scheme purposes. We look at what you actually do before advising on which protection applies to you.
Should a company register in its own name?
Yes. A private limited company or LLP registers under its own PAN, with Aadhaar of an authorised signatory used for verification. When a proprietorship converts into a company, the company applies fresh with its new PAN rather than reusing the proprietor’s number. We handle both the new registration and the closure of the old one, so your records match your GST and income tax details.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The government fee for Udyam registration is nil.
Ready to begin?
Share your PAN and last ITR, and we will confirm your MSME category and file your Udyam registration.