Udyam registration process: steps, documents and 2025 limits

The quick answer

The Udyam registration process is the government's free, online, paperless way to register a micro, small or medium enterprise (MSME) in India. You file it yourself on udyamregistration.gov.in with an Aadhaar number (the proprietor's, the managing partner's or the karta's; for a company, LLP, society or trust, the authorised signatory's along with the organisation's PAN and GSTIN), declare your business details, and receive a permanent Udyam Registration Number and an e-certificate. There is no fee, no document upload and no renewal; your investment and turnover figures are pulled from your income tax and GST records, and you update the registration online each year.

This guide goes further than the usual five screenshots. It sets out what the Ministry's notification actually says, the 2025 limits that decide whether you are micro, small or medium, who must give which number, what to do if you are a trader or have no GSTIN, how to avoid paying a private site for something that is free, and how to use the registration once you have it to sell to bigger buyers. Every rule below comes from the official documents linked in each section, read on 1 November 2026.

What Udyam registration is, in the government's own words

Udyam registration replaced the older Udyog Aadhaar Memorandum (UAM) and Entrepreneurs Memorandum (EM-II) from 1 July 2020. The legal basis is the Ministry of MSME's notification S.O. 2119(E) of 26 June 2020, issued under sections 7 and 8 of the Micro, Small and Medium Enterprises Development Act, 2006. You can read the full Gazette text in the copy the Gem & Jewellery Export Promotion Council circulated to its members (Gazette notification S.O. 2119(E), PDF). Paragraph 2 of that notification says anyone who intends to set up an MSME "may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof", and that the enterprise is then given a permanent "Udyam Registration Number" and an e-certificate.

The Ministry's launch announcement, the PIB press release of 30 June 2020, lists the practical points that still matter today:

• The process is "fully online, paperless and based on self-declaration"; no documents or proof are uploaded.
• An Aadhaar number is required.
• The certificate carries a dynamic QR code that opens the enterprise's page on the portal.
• "There will be no need for renewal of Registration."
• Investment and turnover details linked to PAN and GST are taken automatically from government databases, because the portal is integrated with the Income Tax and GSTIN systems.
• No enterprise should file more than one Udyam registration, but any number of activities (manufacturing, services or both) can be added to one registration.
• "Registration Process is totally free. No Costs or Fees are to be paid in this regard."

The same release carries a warning that is still worth repeating: the Ministry noticed "private websites projecting as Government website" and clarified that apart from udyamregistration.gov.in and the government's own Single Window facilitation systems, "no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration". You can still ask your own chartered accountant to sit with you while you file, but nobody needs to "apply on your behalf" for a fee, and you should never pay a website that only looks like the portal.

Micro, small or medium: the limits that decide your category

When you register, the portal classifies you, so it helps to know where you will land before you start. The classification has two tests: investment in plant and machinery or equipment, and turnover. The limits were raised from 1 April 2025 by notification S.O. 1364(E) of 21 March 2025; the Reserve Bank of India's FAQs on Micro, Small and Medium Enterprises (updated 29 July 2025) state the current figures and add that "all such enterprises are required to register online on the Udyam Registration portal". The 2020 figures come from paragraph 1 of S.O. 2119(E).

Category	Investment limit (from 1 July 2020)	Turnover limit (from 1 July 2020)	Investment limit (from 1 April 2025)	Turnover limit (from 1 April 2025)
Micro	₹1 crore	₹5 crore	₹2.5 crore	₹10 crore
Small	₹10 crore	₹50 crore	₹25 crore	₹100 crore
Medium	₹50 crore	₹250 crore	₹125 crore	₹500 crore

Four rules in S.O. 2119(E) explain how those numbers are applied, and they are the ones most explainer pages leave out:

1. Both tests together, and upward is stricter than downward. Paragraph 3 says that if an enterprise crosses the limit for its category in either investment or turnover, it moves up to the next category; but it moves down only when it falls below the limits for its present category in both.
2. One PAN, one enterprise. All GSTINs listed against the same PAN are treated as one enterprise, and their turnover and investment are added together. A firm with GST registrations in three states cannot split itself into three micro units.
3. Exports do not count in turnover. Paragraph 5 excludes exports of goods or services from turnover for classification, for micro, small and medium alike. A manufacturer with ₹30 crore of sales of which ₹22 crore are exports has ₹8 crore of turnover for this purpose, inside the 2025 micro limit if its investment is also within ₹2.5 crore.
4. Investment follows your ITR. Paragraph 4 links investment to the income tax return of previous years. "Plant and machinery or equipment" has its Income Tax Rules meaning and covers all tangible assets other than land and building and furniture and fittings. A new enterprise with no ITR yet self-declares the purchase (invoice) value, excluding GST, whether the machine was bought new or second-hand.

Paragraph 8 also gives you breathing room when you grow. After an upward change and re-classification, an enterprise keeps its existing status until one year after the close of the year of registration; after a fall, it stays in its present category until the end of the financial year and gets the new status from the following 1 April. Our MSME database guide covers how many enterprises sit in each category and what the official MSME counts include.

Documents and details for the Udyam registration process

You upload nothing, but you do need the numbers and facts below at hand, because the portal checks some of them against Aadhaar, PAN and GST records and the rest are a legal self-declaration. Paragraph 6 of S.O. 2119(E) decides whose Aadhaar is used and when PAN and GSTIN are needed:

Type of business	Whose Aadhaar	PAN and GSTIN
Proprietorship	The proprietor	The proprietor's PAN; GSTIN where the business has one (see the next section if it has none)
Partnership firm	The managing partner	The firm's PAN; the firm's GSTIN where it has one
Hindu Undivided Family (HUF)	The karta	The HUF's PAN; GSTIN where it has one
Company, LLP, co-operative society, society or trust	The authorised signatory	The organisation must give its PAN and GSTIN along with the Aadhaar number

Keep this checklist ready before you open the portal:

• Aadhaar number and the mobile linked to it. The OTP goes to that mobile. If the Aadhaar holder is not with you, schedule the filing when they are.
• PAN of the enterprise (for a proprietor, their own PAN) and, if registered, the GSTIN. All GSTINs under the PAN are read together.
• Name of the enterprise exactly as on PAN and GST, and the name of each plant or unit if you have more than one.
• Addresses of the office and of every plant or unit, with PIN code and district.
• Date of incorporation or start of business, and, if you had one, your old UAM or EM-II number (existing registrations had to move to Udyam; paragraph 7 kept them valid only until 31 March 2021).
• Bank account number and IFSC of the business account.
• Major activity (manufacturing or services) and the NIC codes of what you do. Our NIC code list guide explains how to find the right five-digit code and what changed in NIC 2025.
• Number of employees, investment in plant and machinery or equipment and turnover. If you have filed an ITR, these come from it; if you are new, you declare them.

How to do Udyam registration online, step by step

The portal's form changes from time to time, and paragraph 6(1) of the notification simply says "the form for registration shall be as provided in the Udyam Registration portal". We could not open udyamregistration.gov.in from our checks on 1 November 2026, so the steps below follow the notification and the Ministry's own descriptions rather than screenshots; the labels on screen may differ slightly. The order of work is what matters.

1. Type the address yourself. Go to udyamregistration.gov.in by typing it, not by clicking an advertisement. Look-alike sites with "udyam" in the name are exactly what the Ministry warned about. The government portal never asks for a payment.
2. Choose the option for new entrepreneurs (if you held a UAM or EM-II registration, use the option the portal offers for existing registrations instead).
3. Verify Aadhaar. Enter the Aadhaar number and the name exactly as printed, give consent, and enter the OTP sent to the Aadhaar-linked mobile.
4. Select the type of organisation and verify PAN. The portal checks the PAN against the Income Tax database and pulls in what it can; for companies and LLPs, it also checks the GSTIN.
5. Fill in the enterprise details. Name, units and their addresses, official address, dates, bank details, mobile and email, number of employees, and whether you have GST.
6. Pick the major activity and NIC codes. Add every activity you actually carry on; one registration can hold manufacturing and services together, and you should not create a second registration for a second line of business.
7. Enter investment and turnover where they are not filled automatically, excluding exports from turnover.
8. Submit with a final OTP. The Udyam Registration Number is assigned on submission, and the e-certificate with its QR code is issued once the process is complete. Save the PDF and note the number in your accounts software, letterhead and vendor forms.

If you cannot do it online for any reason, including not having an Aadhaar number yet, paragraph 9 of the notification sends you to the government's Single Window Systems: the Champions Control Rooms in the Ministry's offices, including the MSME Development Institutes, and the District Industries Centre (DIC) in your district. You can go with your Aadhaar enrolment slip, bank photo passbook, voter ID, passport or driving licence, and they will help you get Aadhaar and then file.

Many owners still prefer a professional to check the investment and turnover figures before they sign the declaration, especially with several GSTINs or a mix of exports and domestic sales. Starleads' Chartered Accountants & Tax Consultants list had 47,994 contacts across 27 states and 179 cities when we checked on 1 November 2026, 97% with a mobile number and 83% with an email. The most were in Maharashtra (19,286), Delhi (5,879) and Karnataka (4,274), and by city Starleads' Insights figures put Mumbai first (15,641), then Bengaluru (4,072), Kolkata (3,121), Hyderabad (2,711) and Pune (2,489). These figures, and all the Starleads figures in this guide, are counts of contacts in Starleads' data, compiled from business directories, not an official census or a government register. Paying a CA for advice is your choice; the registration itself stays free.

Traders, very small firms and the Udyam Assist Platform

Two groups often get stuck: retail and wholesale traders, and very small businesses that have no GSTIN.

Traders. The MSMED Act's categories are manufacturing and services, so traders were outside Udyam at first. The RBI's FAQ records that the Ministry of MSME, by Office Memorandum dated 2 July 2021, decided "to include Retail and Wholesale trade as MSMEs for the limited purpose of Priority Sector Lending and they would be allowed to be registered on Udyam Registration Portal", with banks told by RBI circular of 7 July 2021. The words "limited purpose" matter: a trader's Udyam certificate helps it get a bank loan counted as priority sector lending, but do not assume every MSME benefit (for example, a scheme written for manufacturers) applies to a trading firm. Read each scheme's own eligibility clause.

No PAN or GSTIN. Paragraph 5(3) of the 2020 notification made PAN and GSTIN mandatory after 31 March 2021, and the RBI's FAQ acknowledges that some enterprises "are unable to get registered on the Udyam Registration Portal (URP) due to lack of mandatory documents such as PAN or Goods and Services Tax Identification Number". For them the Ministry launched the Udyam Assist Platform (UAP). SIDBI's Udyam Assist Platform page says the platform was launched on 11 January 2023 to give Udyam registration to informal micro enterprises not registered with GST, that registration is done through Designated Agencies such as banks, NBFCs and microfinance institutions, and that "over 145 DAs" had helped register "over 1.50 crore unique IMEs" when we read it. The RBI defines these informal micro enterprises as businesses exempt from filing GST returns because of their turnover, and treats the Udyam Assist Certificate as equal to a Udyam Registration Certificate for priority sector lending, with the holder counted as a micro enterprise.

	Udyam Registration Portal	Udyam Assist Platform
Who files	The enterprise itself, online (or with help at a DIC or Champions Control Room)	A Designated Agency (a bank, NBFC, MFI or government department) on the enterprise's behalf
Meant for	Micro, small and medium enterprises; traders for priority sector lending	Informal micro enterprises not registered with GST
Certificate	Udyam Registration Certificate	Udyam Assist Certificate
Bank treatment	Classification as recorded in the certificate	Treated as a micro enterprise for priority sector lending
Run by	Ministry of MSME	SIDBI for the Ministry of MSME
Fee	None	Not stated on SIDBI's page; ask the Designated Agency

If your business later registers for GST, move to a full Udyam registration so your classification reflects your real figures.

After you register: updates, mistakes and penalties

"No renewal" does not mean "file and forget". Paragraph 8 of S.O. 2119(E) requires every enterprise with a Udyam number to update its information online, including the ITR and GST return details of the previous financial year, on a self-declaration basis, and it says that failing to update within the period the portal specifies "will render the enterprise liable for suspension of its status". The government also updates your classification itself from ITR and GST data and sends you a communication when you graduate to a higher category or slide to a lower one.

Three more rules to keep in mind:

• Wrong figures carry a penalty. Paragraph 6(8) says that whoever "intentionally misrepresents or attempts to suppress the self-declared facts and figures" in registration or updating is liable to the penalty in section 27 of the MSMED Act. If you made a genuine mistake, correct it through the portal's update option rather than leaving it.
• Complaints go to the DIC. Under paragraph 9(4), when there is a discrepancy or a complaint, the General Manager of the District Industries Centre inquires, the state's industries department hears the enterprise, and it can amend the details or recommend that the Ministry cancel the certificate.
• One registration, many units. Add new plants, branches and activities to the existing registration. A second Udyam number for the same PAN breaks paragraph 6(7).

The QR code also works the other way round. When a supplier tells you they are a micro or small enterprise, scan the code on their certificate, or look them up as our company search guide shows, and match the name, PAN and address with their invoice before you accept their MSME status in your books.

Using your Udyam registration to win business

The registration is a key that opens doors; you still have to walk through them. These are the uses that matter most to the small manufacturers, service firms and traders who read Starleads' guides:

• Bank credit. The RBI's FAQ says banks follow the classification recorded in the Udyam certificate (or the Udyam Assist certificate) when they count loans as priority sector lending, and its answer on collateral says banks must not take collateral for loans up to ₹10 lakh to units in the micro and small sector. Take the certificate to every loan discussion.
• Government buying. Public procurement rules give micro and small enterprises specific advantages, such as the earnest money (EMD) exemption. Our guides on how to get government tenders and GeM registration for sellers explain the rules and where the Udyam number goes in the bid.
• Getting paid on time by big buyers. Buyers must pay micro and small suppliers within 45 days, and a buyer's income tax deduction can depend on it; our MSME database guide sets out the 45-day rule, the interest for late payment and the Section 43B(h) link. Put your Udyam number and category on every invoice and in every vendor registration form so the buyer's accounts team knows the rule applies to you.
• Becoming an approved vendor. PSUs and private companies ask for the Udyam certificate in their vendor forms. Our vendor registration guide shows what else they ask for.

To turn that into orders, you need the people who approve vendors and place orders. Starleads' Purchase & Procurement Heads list had 7,19,174 contacts across 33 states and 301 cities on 1 November 2026, 93% with a mobile number but only 23% with an email, so it suits phone-first selling. The most were in Maharashtra (2,14,044), Karnataka (1,46,524) and Delhi (1,20,068). If you sell to small firms rather than corporates, the Business Owners & Proprietors list had 3,27,366 owners of shops, trading firms and small companies across 1,586 cities, 98% with a mobile number and almost none with an email, led by Maharashtra (76,725), Gujarat (46,327) and Tamil Nadu (36,034).

The live figures for the main list on this page: Starleads' Chartered Accountants & Tax Consultants list has 47,994 contacts in 179 cities, 97% with a mobile number and 83% with an email address. Most are in Mumbai, Delhi, Bengaluru, Kolkata and Hyderabad.

Chartered accountants and tax consultants by city

• Mumbai 15,641 contacts · 76% email · 95% mobile ₹499
• Bengaluru 4,072 contacts · 76% email · 99% mobile ₹499
• Kolkata 3,121 contacts · 97% email · 99% mobile ₹499
• Hyderabad 2,711 contacts · 95% email · 99% mobile ₹499
• Pune 2,489 contacts · 83% email · 99% mobile ₹499
• Gurugram 1,670 contacts · 94% email · 99% mobile ₹499
• Ahmedabad 1,608 contacts · 95% email · 98% mobile ₹499
• Jaipur 1,300 contacts · 73% email · 100% mobile ₹499
• Chennai 834 contacts · 94% email · 97% mobile ₹499
• Noida 784 contacts · 90% email · 99% mobile ₹499
• Vadodara 684 contacts · 70% email · 99% mobile ₹499
• Surat 462 contacts · 56% email · 99% mobile ₹499

Where Starleads falls short: none of these lists says which firms hold a Udyam registration, what category they are in, or their turnover; that information sits with the Ministry, and its portal is not a contact directory. Every list page shows 60 sample rows free so you can judge the data before paying. City, state and specialisation lists cost ₹499 and All-India bulk lists ₹1,999, plus 18% GST. Our guide to reaching purchase managers covers the pitch itself.

Before you call or message anyone on a bought list, follow India's telecom rules. A business mobile is still a mobile number. TRAI's preference registration page explains that any subscriber can block commercial calls and SMS by category, time band and day by sending an SMS or calling 1909, through IVR, an approved app or an OTP-verified web portal; that is the DND (NCPR) register. TRAI's advice to senders says every business sending bulk messages must register as a principal entity, use a registered header of up to 11 characters, register its content templates and, where needed, register and record customer consent: the DLT system. In practice, check numbers against DND before a calling campaign (our DND check guide shows how), make one-to-one calls from a normal business number, send bulk SMS only through DLT-registered templates (see our DLT registration guide), and stop contacting anyone who asks you to.

Mistakes that cause trouble later

• Paying a look-alike site. The Ministry has said only its portal and its Single Window systems may do MSME registration. If a site asks for a fee to "process" Udyam, it is not the government portal.
• Registering twice. A second registration for a new unit or a new activity, or a partner registering the same firm again with their own Aadhaar, breaks the one-registration rule. Add units and activities to the first one.
• Counting exports in turnover. It can push you into a higher category than the law intends. Exports are excluded.
• Counting land, buildings or furniture as investment. They are excluded from plant and machinery or equipment.
• Choosing the wrong NIC code or major activity. Traders who pick a manufacturing code to look like a manufacturer are making a self-declaration that is not true, with the section 27 risk that brings.
• Forgetting the yearly update. The portal can suspend your status if you do not update the previous year's ITR and GST details in time.
• Leaving the certificate in a drawer. Its value comes from using it: on invoices, in vendor forms, in loan files and in tender bids.

Questions people ask

Is Udyam registration free?

Yes. Paragraph 6(2) of notification S.O. 2119(E) says "there will be no fee for filing Udyam Registration", and the Ministry's 30 June 2020 release says "no costs or fees are to be paid". A professional may charge for advice, but the government charges nothing.

What documents are required for Udyam registration?

None are uploaded. You need the Aadhaar number of the right person (proprietor, managing partner, karta or authorised signatory) with access to its linked mobile, the PAN, the GSTIN where you have one (mandatory for companies, LLPs, co-operatives, societies and trusts), bank details, addresses, NIC codes, employee numbers, and investment and turnover figures.

Is Udyam registration mandatory?

The notification says a person "may file" it, so no law forces every business to register. But the RBI says MSMEs "are required to register online" to get their classification recognised, and banks, government buyers and large customers rely on the certificate. Without it, you usually cannot claim MSME benefits.

Can a trader get Udyam registration?

Yes. Since the Ministry's office memorandum of 2 July 2021, retail and wholesale traders can register on the Udyam portal, but only for the limited purpose of priority sector lending, as the RBI's FAQ records.

Can I register without GST?

The 2020 notification made PAN and GSTIN mandatory after 31 March 2021, and companies, LLPs, co-operatives, societies and trusts must give a GSTIN. If your business is exempt from GST and the portal will not let you finish without a GSTIN, use the Udyam Assist route: informal micro enterprises that are exempt from GST returns can get a Udyam Assist Certificate through a Designated Agency such as their bank, which the RBI treats as equal to a Udyam certificate for priority sector lending.

Does the Udyam certificate expire?

No. The Ministry said there is no need for renewal. You must, however, update the previous year's ITR and GST details on the portal, or your status can be suspended.

Can I have more than one Udyam registration?

No. One enterprise files one registration, and all GSTINs under one PAN count as one enterprise. Add extra plants, units and activities, including manufacturing and services together, to the same registration.

What happens if my turnover crosses the limit?

You move up a category, but you keep your existing status until one year after the close of the year of registration. If your figures fall, you move down only when both investment and turnover fall below your category's limits, and the new status applies from the next 1 April.