Udyam registration: MSME classification and benefits
Udyam is the free online MSME registration. From April 2025, micro means investment up to ₹2.5 crore and turnover up to ₹10 crore.
Short answer
Udyam registration is the free, paperless online registration of micro, small and medium enterprises with the Ministry of MSME on the Udyam portal. It classifies an enterprise as micro, small or medium based on investment in plant and machinery or equipment and turnover, using PAN and GST data. The certificate has no expiry and carries a permanent Udyam number.
- Portal
- udyamregistration.gov.in
- Fee
- Free
- Micro
- Investment up to ₹2.5 crore and turnover up to ₹10 crore
- Revised limits effective
- 1 April 2025 (S.O. 1364(E))
Classification from 1 April 2025
The government revised the limits through notification S.O. 1364(E) dated 21 March 2025, with effect from 1 April 2025. An enterprise must satisfy both the investment and turnover tests for a category; if it exceeds either, it moves to the next category. Exports are excluded from turnover for classification.
- 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
How to register
The proprietor, managing partner or authorised director registers using Aadhaar, and the business's PAN. Investment and turnover data are drawn from income-tax and GST records, so the classification updates automatically as figures change. There is no document upload and no fee. Informal micro enterprises without PAN or GST can use the Udyam Assist Platform. Registration should be in the name of the entity that actually runs the business.
Why it matters for startups
Udyam registration unlocks priority sector lending, collateral-free credit schemes, preferences in government procurement and, for micro and small enterprises, the delayed payment protections of the MSMED Act. Many large customers ask suppliers for their Udyam certificate because of their own payment obligations. Register early and keep GST and income-tax filings accurate so your classification stays correct.
Related services
Sources
- TaxGuru: MSME classification limits revised from 1 April 2025 (S.O. 1364(E))
- Udyam Registration portal (Ministry of MSME)
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Is there a fee for Udyam registration?
No. Registration on the official Udyam portal is free. Be wary of sites that charge for the government registration itself.
Do service businesses qualify for Udyam?
Yes. Both manufacturing and service enterprises can register, and traders can register for priority sector lending purposes.
Does Udyam registration need renewal?
No. The certificate is permanent, but the enterprise should update details when they change.