
Udyam Registration is a government-issued unique identification provided by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India. It replaced the old system of MSME registration and Udyog Aadhaar in July 2020.
It is mandatory for all Micro, Small, and Medium Enterprises to register under Udyam if they want to avail benefits like subsidies, loan schemes, tenders, and ease of doing business.
What is Udyam Registration?
Udyam Registration is an online registration system launched by the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India. It provides businesses with a unique identification number and an e-certificate known as the Udyam Registration Certificate.
This certificate acts as an official recognition of your enterprise as an MSME and allows businesses to avail several government schemes, subsidies, loans, and tender opportunities.
Unlike earlier processes, Udyam Registration is:
- Completely free of cost
- Lifetime valid (no renewal required)
- Based on Aadhaar and PAN authentication
- Linked with GST and Income Tax data for transparency
MSME Classification for Udyam Registration
To register under Udyam, your business must fall under the MSME definition. The Government revised the classification in 2020 based on investment in plant & machinery and annual turnover.
Category | Investment in Plant & Machinery/Equipment | Annual Turnover |
---|---|---|
Micro Enterprise | Up to ₹1 Crore | Up to ₹5 Crore |
Small Enterprise | Up to ₹10 Crore | Up to ₹50 Crore |
Medium Enterprise | Up to ₹50 Crore | Up to ₹250 Crore |
If your business meets these criteria, you can apply for Udyam Registration.
Who Can Apply ?
The following types of business entities can apply:
- Proprietorships
- Partnership firms
- Private Limited companies
- Limited Liability Partnerships (LLPs)
- Producer companies
- Hindu Undivided Families (HUFs)
- Co-operative societies
- Any other business fulfilling MSME criteria
Step-by-Step Process of Udyam Certificate Registration
The process is 100% online and Aadhaar-based. Here’s how you can complete your registration:

Step 1: Visit the Official Portal
Go to 👉 https://udyamregistration.gov.in
Step 2: Choose the Registration Option
- For new entrepreneurs: Select “For New Entrepreneurs who are not Registered yet as MSME”
- For existing UAM/EM-II holders: Select “For those already having registration”
Step 3: Enter Aadhaar Number
- Proprietorship → Owner’s Aadhaar
- Partnership → Managing Partner’s Aadhaar
- Company/LLP → Authorized Signatory’s Aadhaar + PAN + GSTIN
Step 4: Fill in Enterprise Details
- PAN & GSTIN details
- Business name and type of organization
- Bank account details
- NIC code (business activity)
- Number of employees
- Turnover & investment details
Step 5: Verification through OTP
You’ll receive an OTP on your Aadhaar-linked mobile number. Enter it to verify.
Step 6: Receive Udyam Certificate
- After submission, your application is processed instantly.
- You’ll get an Udyam Registration Certificate with a unique Udyam Registration Number (URN).
- Certificate is digitally verifiable and valid for a lifetime.
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Benefits of Udyam Registration
Udyam Registration provides a wide range of benefits to MSMEs:
1. Financial Benefits
- Collateral-free loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Lower interest rates on loans.
- Subsidy on patent registration and industrial promotion.
- Concession on electricity bills.
2. Business Growth Support
- Preference in government tenders and contracts.
- Access to exclusive PSU procurement policies.
- Participation in international trade fairs and exhibitions.
3. Legal Protection
- Protection against delayed payments under MSME Act, 2006.
- Easy resolution through MSME Samadhan Portal.
4. Tax & Compliance Benefits
- Easier compliance under environmental and labor laws.
- Various state-level tax exemptions.
5. Market & Export Assistance
- Support for export promotion.
- Inclusion in MSME clusters for market development.
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Udyam Registration vs. Udyog Aadhaar
Feature | Udyog Aadhaar | Udyam Registration |
---|---|---|
Validity | Required renewal | Lifetime valid |
Process | Semi-digital | 100% digital |
Documents | Required uploads | Aadhaar & PAN only |
Classification | Old definition | Revised 2020 definition |