Udyam Registration is the official government process for registering your business as a Micro, Small, or Medium Enterprise (MSME) in India. It replaced the older Udyog Aadhaar Memorandum (UAM) system in 2020. A Udyam Registration Number (URN) and Udyam Certificate unlock a range of government benefits — from priority lending to protection against delayed payments. This guide covers who qualifies, the registration steps, and what the certificate gets you.
Who qualifies as an MSME under Udyam?
The MSME classification is based on annual turnover and investment in plant and machinery or equipment:
Micro Enterprise — Investment 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.
Who can apply for Udyam Registration?
Any of the following business structures engaged in manufacturing, services, or trading can register:
Sole proprietorships — Individual business owners running their business under their own name.
Partnership firms — Businesses owned by two or more partners.
Private and public limited companies — Companies incorporated under the Companies Act.
LLPs and One Person Companies (OPCs) — Limited Liability Partnerships and single-member companies.
Hindu Undivided Families (HUFs) — Family-owned businesses operating as HUFs.
Documents required for Udyam Registration
The registration is primarily Aadhaar-based and requires minimal documents:
Aadhaar number — Of the proprietor, managing partner, or authorised signatory of the company/LLP. The Aadhaar must be linked to a mobile number for OTP verification.
PAN number — PAN of the business entity (or proprietor for sole proprietorships). Mandatory for businesses with turnover above the threshold.
Bank account details — Account number and IFSC code of the business bank account.
Business activity details — NIC code for your primary business activity (manufacturing or service), and details of investment and turnover.
How to register on the Udyam portal — step by step
Registration is done at udyamregistration.gov.in — free of charge:
1
Visit udyamregistration.gov.inClick 'For New Entrepreneurs who are not Registered yet as MSME' on the homepage.
2
Enter your Aadhaar numberEnter the Aadhaar number of the proprietor, managing partner, or authorised signatory. Select your category (Proprietorship, Partnership, etc.).
3
Validate with OTPClick 'Validate & Generate OTP'. Enter the OTP sent to the Aadhaar-linked mobile number.
4
Enter PAN and business detailsProvide your PAN, business name, date of commencement, bank account details, and NIC code for your activity.
5
Enter investment and turnover detailsEnter the investment in plant and machinery/equipment and the annual turnover of the business. These determine your MSME category.
6
Submit the applicationReview all details and submit. You will receive your Udyam Registration Number (URN) and Udyam Certificate on your registered email immediately upon submission.
Benefits of Udyam Registration
A Udyam certificate unlocks significant government support:
Priority sector lending — Banks are required to give priority to MSME loan applications. Registered businesses get easier access to collateral-free loans under the Credit Guarantee Fund Scheme.
Lower interest rates — MSMEs receive preferential interest rates on loans from public sector banks.
Protection against delayed payments — Under the MSMED Act, buyers must pay MSMEs within 45 days. If they don't, interest at three times the bank rate is charged. Registration is required to enforce this.
Government tender preferences — Many central and state government tenders reserve a percentage of contracts for MSMEs or exempt them from earnest money deposits.
Subsidies and schemes — Access to schemes like the Technology Upgradation Fund, ISO certification reimbursement, and state-level MSME subsidies.
Frequently asked questions
Yes. Registration on the official Udyam portal (udyamregistration.gov.in) is completely free. Beware of third-party websites that charge a fee — the official registration costs nothing.
Udyog Aadhaar (UAM) was the older MSME registration system, replaced by Udyam Registration in July 2020. Businesses registered under UAM were required to migrate to Udyam. The new system is linked to PAN and GST data, making verification automatic.
The Udyam Registration Number (URN) and certificate are issued instantly upon successful submission. The certificate is sent to your registered email address immediately.
Yes. Both manufacturing and service businesses can register under Udyam. The investment threshold for service businesses is based on equipment investment, and the turnover limits are the same as for manufacturing enterprises.
Need help with Udyam Registration?
A verified specialist on Krakens will guide you through the Udyam portal, help you determine your correct MSME category, and complete your registration accurately.
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