Udyam (MSME) registration: eligibility, limits, process and benefits

Who can register

Any enterprise engaged in manufacturing or providing services that falls within the MSME limits can register — proprietorships, partnership firms, Hindu Undivided Families, LLPs, companies, cooperatives, societies and trusts. Whose Aadhaar is used depends on the type of business:

• proprietorship — the proprietor’s Aadhaar;
• partnership firm — the managing partner’s Aadhaar;
• HUF — the karta’s Aadhaar; and
• company, LLP, cooperative, society or trust — the organisation’s GSTIN and PAN with the Aadhaar of its authorised signatory.

Current MSME classification limits

Since 1 April 2025, enterprises are classified using both investment in plant and machinery or equipment and annual turnover:

• Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore.
• Small: investment up to ₹25 crore and turnover up to ₹100 crore.
• Medium: investment up to ₹125 crore and turnover up to ₹500 crore.

What you need before you start

• Aadhaar number of the relevant person, with the linked mobile number for the OTP.
• PAN — the business PAN, or the proprietor’s own PAN for a proprietorship.
• GSTIN, if your business is required to register for GST. Businesses exempt from GST registration can register without a GSTIN.
• Business name, address, date of starting business and bank details.
• Main activities, which are recorded using NIC (National Industrial Classification) codes.
• Number of employees, and investment and turnover figures — these are linked with income-tax and GST records.

How to register on the official portal

1. Open the official portal, udyamregistration.gov.in, and choose new registration. Be careful to use the official site — it states that registration has no fee and that no other website or app is official.
2. Enter the Aadhaar number and name, and verify with the OTP sent to the linked mobile.
3. Enter PAN details, which are validated online, and the GSTIN if applicable.
4. Fill in business details: name, type of organisation, address, bank, activity and NIC codes, employees, and investment and turnover.
5. Submit with the final OTP. The registration number is issued and the certificate can be downloaded from the portal.

No documents to upload

Udyam registration is a self-declaration — no documents or certificates are uploaded. Because investment and turnover are linked to your income-tax and GST data, the details you declare should be consistent with your returns. If something changes, such as your address, activities or turnover, update the registration on the portal.

Key benefits of Udyam registration

• Delayed-payment protection: buyers must pay micro and small suppliers within the agreed time, capped at 45 days, and disputes can be taken up through the MSME Online Dispute Resolution portal launched in June 2025.
• Public procurement: central ministries, departments and public sector enterprises must buy at least 25% of their annual purchases from micro and small enterprises.
• Credit: Udyam registration is the usual gateway to priority sector lending and credit guarantee schemes for micro and small enterprises.
• Eligibility for many central and State MSME schemes, subsidies and programmes.

No PAN or GSTIN? The Udyam Assist Platform

Informal micro enterprises that do not have PAN or GSTIN can be registered on the Udyam Assist Platform, launched in January 2023, through designated agencies such as banks and other lenders. A Udyam Assist certificate allows these enterprises to be treated as micro enterprises for priority sector lending.

Recent change in the law

In August 2026 Parliament passed the MSMED (Amendment) Bill, 2026. It writes the investment and turnover classification into the Act, describes the Udyam portal as a free, digital and voluntary registration platform, and strengthens online dispute resolution for delayed payments. Check the Ministry of MSME’s announcements for the date its provisions come into force.

Common questions