Udyam registration: how MSMEs register on the government portal

Who can register and how enterprises are classified

Any enterprise engaged in manufacturing or services, whether proprietorship, partnership, LLP, company, cooperative or trust, can register. Classification is based on composite criteria of investment in plant and machinery or equipment and annual turnover. An enterprise moves to a higher category if it crosses either limit. Investment and turnover data are pulled from income-tax and GST databases, so the classification is updated automatically as returns are filed.

Because the limits were raised from 1 April 2025, many enterprises that were earlier small are now micro, and some medium ones are now small. Check your current classification on the certificate rather than relying on an old printout.

What you need

No documents need to be uploaded. The portal verifies PAN and GSTIN online and relies on self-declaration for other details. Make sure the Aadhaar holder is the person legally authorised to act for the enterprise.

• Aadhaar number of the proprietor, managing partner, Karta or authorised signatory
• PAN of the enterprise
• GSTIN, where the enterprise is required to be registered under GST
• Bank account details
• NIC code describing the main activity
• Number of employees and address of units

Benefits of Udyam

Udyam registration is the gateway to MSME benefits such as priority sector lending, collateral-free credit schemes, government procurement preferences and protection against delayed payments under the MSMED Act. Micro and small enterprises can use the MSME Samadhaan route and claim interest on overdue payments from buyers.

Buyers also need supplier Udyam status to apply the rule that payments to micro and small enterprises be made within the agreed period, capped at 45 days, which affects their income-tax deductions.

Udyam and the 45-day payment rule

Micro and small enterprises registered on Udyam can expect buyers to pay within the agreed period, which cannot exceed 45 days under the MSMED Act. Delayed payment carries compound interest at three times the RBI bank rate, and the buyer's income-tax deduction for unpaid amounts can be affected. Many large buyers now ask suppliers for their Udyam certificate at onboarding. Keeping your classification and details current helps you rely on this protection.

Common mistakes

The most common mistake is using a private website that looks official and charges a fee. The government portal warns about fake sites and states that registration is free. Other errors include choosing the wrong NIC code, registering a second Udyam for the same enterprise (only one is allowed, with multiple activities listed), and failing to migrate an old Udyog Aadhaar. Misrepresenting information or attempting to suppress facts can attract penalties under the MSMED Act, and the registration can be cancelled.

Updating and Udyam Assist

There is no renewal. However, the enterprise should update its details, such as address, activities, ownership or bank account, through the update option on the portal whenever they change. Investment and turnover update automatically from tax data.

Informal micro enterprises that do not have PAN or GSTIN can register through the Udyam Assist Platform with help from designated agencies, which gives them a certificate treated as Udyam for priority sector lending.

Step by step

1. 1Open the official portal

   Go to udyamregistration.gov.in and choose new registration.

2. 2Verify Aadhaar

   Enter the Aadhaar number and name and validate with OTP.

3. 3Validate PAN

   Select organisation type and verify the enterprise PAN.

4. 4Fill enterprise details

   Enter name, units, address, bank, NIC codes and employees.

5. 5Submit

   Submit with final OTP and receive the Udyam Registration Number.

6. 6Download certificate

   Download the e-certificate with its QR code.