What it is
Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore. Small: up to ₹25 crore and ₹100 crore. Medium: up to ₹125 crore and ₹500 crore.
Registration issues a permanent Udyam Registration Number with a downloadable certificate.
Data is auto-fetched from income tax and GST systems, so declared figures must match your filings.
Who it applies to
- Any manufacturing or service enterprise within the investment and turnover limits.
- Proprietorships, partnerships, LLPs, companies, trusts and co-operative societies are all eligible.
- Traders are covered for priority-sector lending purposes only.
Documents required
- •Aadhaar of the proprietor, managing partner or authorised signatory (Aadhaar-linked mobile required for OTP)
- •PAN of the enterprise
- •GSTIN, where the enterprise is registered under GST
- •Bank account details and NIC code of the activity
Step-by-step process
- 1
Open the Udyam portal
Go to the official Udyam registration site and choose 'For New Entrepreneurs who are not registered yet as MSME'.
- 2
Verify Aadhaar with OTP
Enter the Aadhaar number and name of the proprietor or authorised signatory and validate the OTP.
- 3
Validate PAN
Select the organisation type and enter the enterprise PAN. Investment and turnover data are pulled from linked ITR and GST records.
- 4
Enter enterprise details
Fill in the plant address, bank details, primary activity and NIC codes, and the number of employees.
- 5
Submit and download
Submit with final OTP verification. The Udyam certificate with the registration number is generated immediately and emailed.
Fees and timeline
Government fees
Free. No government fee is charged — any site demanding payment for Udyam registration is unofficial.
Typical timeline
Immediate, provided Aadhaar OTP and PAN validation succeed.
Common mistakes and rejection reasons
- Aadhaar not linked to a working mobile number, so OTP cannot be completed.
- PAN and Aadhaar name mismatch.
- Using a private paid look-alike portal instead of the official government site.
- Not updating turnover and investment annually — the classification is refreshed from filed returns.
Frequently asked questions
Is Udyam registration free?
Yes, registration on the official government portal is completely free of cost.
What is the 45-day payment rule?
Buyers must pay a registered micro or small enterprise within 45 days of acceptance of goods or services, failing which compound interest at three times the RBI bank rate applies.
Does Udyam registration expire?
No, the Udyam Registration Number is permanent, but the classification is auto-updated from your income tax and GST data.
Do it with help, or do the maths first
This guide is general information on public compliance procedures and is not professional advice for your specific facts. Government fees and timelines change; verify on the official portal before filing.