Business Registrations & Compliance#081

Understanding UDYAM registration (MSME — Micro, Small, Medium Enterprises)

Register your enterprise on the UDYAM portal to unlock MSME benefits, subsidies, and credit schemes.

At a glance

Jurisdiction

Central — Ministry of Micro, Small and Medium Enterprises (MoMSME), applicable across India

Who applies

Any proprietor, partner, director, or karta of a business entity (proprietorship, partnership, LLP, company, Hindu Undivided Family, cooperative society, or trust) engaged in manufacturing or service activities whose investment and turnover fall within MSME thresholds

Typical time

Immediate — Udyam Registration Certificate is generated instantly upon successful submission; no approval required

Fee

Nil — registration is completely free

Who should use this process

  • Micro Enterprise: Investment in Plant & Machinery or Equipment up to ₹1 crore AND annual turnover up to ₹5 crore
  • Small Enterprise: Investment up to ₹10 crore AND annual turnover up to ₹50 crore
  • Medium Enterprise: Investment up to ₹50 crore AND annual turnover up to ₹250 crore
  • Both manufacturing and service enterprises are eligible
  • Aadhaar number is mandatory for the applicant (proprietor / managing partner / director / karta / authorised signatory)
  • PAN and GSTIN are mandatory for enterprises with turnover above the GST registration threshold (₹20 lakh for services / ₹40 lakh for goods in most states)

Who does NOT need to apply

  • Enterprises that cross both investment AND turnover thresholds of the Medium Enterprise category simultaneously lose MSME status
  • Enterprises engaged purely in trading (buying and selling without adding value) are not eligible for Udyam Registration as of the revised MSME definition
  • Retail and wholesale traders can register under a special advisory for the purpose of priority sector lending only, subject to government policy

Documents required

#DocumentType neededPurpose
1Aadhaar card of proprietor / managing partner / karta / director / authorised signatoryOriginalMandatory for Aadhaar-based OTP verification on the Udyam portal; without valid Aadhaar, registration cannot proceed
2PAN card of the enterprise and the applicantOriginalAuto-verified against the IT database; PAN details (investment, turnover) are fetched automatically from the Income Tax portal
3GSTIN of the enterprise (if applicable)(optional)Mandatory if the enterprise is required to obtain GST registration; optional for micro enterprises below the GST thresholdOriginalAuto-verified against the GSTN database for enterprises that are GST-registered
4Bank account details (account number and IFSC)OriginalRequired to be entered in the registration form for subsidy disbursements and government scheme benefits
5NIC (National Industry Classification) code for the business activityDownload / PrintUsed to classify the business activity; applicant must select the correct NIC code from the portal's dropdown

Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.

Step-by-step guide

  1. 1

    Verify Aadhaar and select enterprise type

    Online

    Visit the Udyam Registration portal. Select 'For New Entrepreneurs who are not Registered yet as MSME or those with EM-II'. Enter the Aadhaar number of the proprietor / managing partner / karta / authorised director. Validate the Aadhaar via OTP sent to the Aadhaar-linked mobile number.

    10–15 minuteshttps://udyamregistration.gov.in
  2. 2

    Enter PAN and validate business details

    Online

    Enter the PAN of the enterprise. The portal auto-fetches the applicant's name from the Income Tax database. Confirm the enterprise type (Proprietorship, Partnership, LLP, Private Ltd., etc.) and proceed.

    5–10 minuteshttps://udyamregistration.gov.in
  3. 3

    Fill enterprise details

    Online

    Enter the name of the enterprise, official address, date of commencement of business, bank details, nature of activity (Manufacturing / Service / Both), NIC codes for the business activity, and the number of employees (male/female). Select whether the enterprise is a new or existing business.

    15–20 minuteshttps://udyamregistration.gov.in
  4. 4

    Declare investment and turnover

    Online

    Declare the investment in plant and machinery / equipment and the annual turnover of the enterprise. For enterprises with PAN, this is auto-populated from the IT return data and GSTR data. Self-declaration is accepted for enterprises without filed ITR.

    5 minuteshttps://udyamregistration.gov.in
  5. 5

    Submit and receive Udyam Registration Certificate

    Online

    Review all entered details, accept the self-declaration, and submit the form. Upon successful submission, the Udyam Registration Number (URN) and Udyam Registration Certificate are generated instantly. The certificate is emailed to the registered mobile/email.

    Immediatehttps://udyamregistration.gov.in

Government officers involved

District Industries Centre (DIC) officer

State Department of Industries / Directorate of Industries

Post-registration verification

Conducts physical or virtual verification of Udyam registrations when flagged; assists MSMEs with facilitation and benefit schemes

Government portals

Udyam Registration Portal

https://udyamregistration.gov.in

New Udyam registration, update of registration details, and downloading the Udyam Registration Certificate

Udyam Assist Platform (for informal micro enterprises without PAN/GSTIN)

https://udyamassist.gov.in

Registration of informal micro enterprises that do not have PAN or GSTIN, through a simplified UAP flow with assisted filing

Things to watch out for

Old Udyog Aadhaar (UAM) registrations are invalid — re-register on Udyam

The older Udyog Aadhaar Memorandum (UAM) system was discontinued. Businesses with UAM registration must migrate to the Udyam portal. UAM registrations are not accepted for government tenders, bank credit schemes, or MSME benefits any longer.

Turnover and investment data are auto-fetched from IT and GST databases

For PAN-linked enterprises, the portal fetches turnover and investment data automatically from the Income Tax portal and GSTN. If ITR has not been filed or GSTR data is inconsistent, the auto-fetch may fail or show incorrect figures. Ensure your ITR and GSTR filings are up to date before registering.

Aadhaar must be linked to an active mobile number

OTP verification during Udyam registration is sent to the mobile number linked to Aadhaar. If your Aadhaar is not linked to an active mobile number, visit an Aadhaar enrolment centre to update the mobile number first.

Registration must be updated annually

The Udyam Registration Certificate must be updated annually with the actual turnover and investment figures based on the previous year's audited accounts / ITR. Failure to update may result in reclassification (upgrade or downgrade) or cancellation of benefits.

Do not obtain multiple Udyam registrations for the same enterprise

Only one Udyam Registration is permitted per enterprise. However, an enterprise with multiple business activities (manufacturing and services both) should include all NIC codes within a single registration. Multiple registrations for the same enterprise can lead to cancellation.