Quick Summary
Udyam Registration provides MSMEs with a unique identity and access to government benefits.
Udyam Registration is the official online process by which a business declares itself a Micro, Small or Medium Enterprise (MSME) with the Ministry of MSME. Notified on 26 June 2020 and live from 1 July 2020, it is free, paperless and self-declaration based, replacing the older Udyog Aadhaar Memorandum (UAM) and EM-II filings. On completion the enterprise gets a permanent Udyam Registration Number (URN) and an e-certificate. Registration is not needed simply to trade, but it is required to claim MSME schemes and statutory protections.
Legal basis and process
Udyam operates under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Filing is done only at the government portal udyamregistration.gov.in using the proprietor's or authorised signatory's Aadhaar together with the enterprise PAN and GSTIN. The portal is linked to CBDT (income tax) and GSTN systems, so investment and turnover data are pulled automatically rather than uploaded.
Classification (from 1 April 2025)
An enterprise must satisfy both limits; export turnover is excluded from the turnover figure.
| Category | Investment in plant, machinery or equipment | Annual turnover |
|---|---|---|
| Micro | up to Rs 2.5 crore | up to Rs 10 crore |
| Small | up to Rs 25 crore | up to Rs 100 crore |
| Medium | up to Rs 125 crore | up to Rs 500 crore |
Why it matters
- Priority-sector and collateral-free credit under the CGTMSE scheme
- Protection against delayed payments, including the 45-day rule under Sections 15-16 of the MSMED Act
- Access to government tenders, the GeM portal and various subsidy and interest-rebate schemes
Key Points
- Free registration
- Paperless process
- Self-declaration
- Replaced Udyog Aadhaar
- Mandatory for MSME benefits