Udyam (MSME) registration: eligibility, limits and how to apply

Updated 30 October 2026 · ImportGap guides

Udyam is the government's free, online registration for micro, small and medium enterprises. It gives your business an MSME identity used by banks, schemes and buyers. It takes about 15 minutes with Aadhaar and PAN.

MSME classification (from 1 April 2025)

Category	Investment in plant & machinery up to	Annual turnover up to
Micro	₹2.5 crore	₹10 crore
Small	₹25 crore	₹100 crore
Medium	₹125 crore	₹500 crore

A business must meet both limits to stay in a category. These limits were raised in 2025; earlier figures you may see online (₹1 crore / ₹5 crore for micro) are out of date.

How to apply

Go to udyamregistration.gov.in . There is no fee; avoid private sites that charge one.
Enter the Aadhaar of the proprietor, managing partner or director and verify the OTP.
Enter PAN; investment and turnover are pulled from income-tax and GST records where available.
Add business details: name, address, bank account, activity (NIC code) and employees.
Submit. The Udyam certificate with a permanent registration number is issued online.

Benefits

Eligibility for MSME schemes such as PMEGP, CGTMSE guarantees and state subsidies.
Priority-sector lending from banks.
Protection against delayed payments: buyers must pay within agreed terms (maximum 45 days), with the MSME Samadhaan portal for disputes.
Preference in government procurement through GeM and public-sector buyers.

Frequently asked questions

Is Udyam registration free?

Yes. Registration on the official portal is free. Sites that charge a fee are private agents.

Can a new business register before it has turnover?

Yes. New businesses can register and update investment and turnover later; the data is linked to PAN and GST.

Do I need to renew Udyam registration?

No renewal is needed, but details should be kept up to date on the portal.

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