MSME Udyam Registration: About, Eligibility & Process
MSME Udyam Registration: About, Eligibility & Process
08 September 2025
Getting official recognition for your small or medium business in India just became easier with Udyam Registration. This government initiative gives MSMEs (Micro, Small, and Medium Enterprises) access to better loan rates, tax benefits, and exclusive government schemes that can boost your business growth. To support and streamline their operations, the Government of India introduced Udyam Registration—a digital-first initiative that makes formalization simple, seamless, and rewarding.
This Guide cover most important topics related to UDYAM: –
Udyam Registration Certificate and Its Importance
Eligibility Criteria for Registration
Benefits of Udyam Registration for Your Business
Step-by-Step Udyam Registration Process
Essential Documents Required
Post-Registration Compliance
Understanding Udyam Registration Certificate and Its Importance
What is Udyam Registration Certificate
The Udyam Registration Certificate is an official document issued by the Ministry of Micro, Small and Medium Enterprises Introduced by the Ministry of MSME in July 2020, in India, serving as proof of registration for businesses falling under the MSME category.
Official Recognition for MSMEs by Ministry of MSME
The Ministry of Micro, Small, and Medium Enterprises introduced Udyam Registration following the Union Cabinet’s approval on May 13, 2020, with a new classification system for MSMEs in India. Under this initiative, all MSMEs became known as ‘Udyam’ and registration became mandatory from July 1, 2020. The government structured these registrations to automatically reflect in other government databases, including PAN, GST, and IT systems, ensuring seamless integration and official confirmation of MSME status for registered businesses.
Eligibility Criteria for Udyam Registration
Investment and Turnover Limits for Micro, Small & Medium Enterprises
A business must qualify under the MSME classification, which is based on investment in plant & machinery or equipment and annual turnover. To encourage growth and enable businesses to scale without losing MSME benefits, the Union Budget 2025 introduced revised investment and turnover limits:
If an enterprise exceeds either the investment or turnover threshold, it will be automatically reclassified to the next category.
Eligible Business Structures and Entity Types
Freelancer
Trader
Partnership
HUF
Startups
LLP & Pvt Ltd
Sole Proprietor
One Person Co.
NGO
Key Benefits of Udyam Registration for Your Business
Access to Government Schemes and Subsidies
Lower Interest Rates on Business Loans
Tax Benefits and Exemptions
Priority in Government Tenders and Approvals
Udyam registration enhances overall business credibility
Step-by-Step Udyam Registration Process
The Udyam Registration process is entirely online and does not require any physical documents. Here’s how businesses can complete their MSME registration:
Step 1: Visit the Udyam Registration Portal
Go to the official website: udyamregistration.gov.in.
Click on ‘New Registration’ to begin.
Step 2: Aadhaar Verification
Proprietorship: Aadhaar number of the proprietor is required.
HUFs: Aadhaar number of the Karta is required.
Partnerships: Aadhaar number of the managing partner is needed.
Companies, LLPs, Societies & Trusts: Aadhaar number of the authorized signatory along with GSTIN and PAN is required.
Step 3: PAN and GSTIN Verification
The online system is fully integrated with Income Tax and Goods and Services Tax Identification Number (GSTIN) systems, and details on the investments and turnover of enterprises are taken automatically from government databases.
Step 4: Fill in Business Details
Name and type of enterprise
PAN details
Business location and address
Bank details
Number of employees
Investment in plant and machinery or equipment
Step 5: Submit the Application
After reviewing the details, submit and validate the Udyam registration form.
After successful registration, you will receive a message on your mobile number and email ID.
You can download and print your Udyam Registration Certificate.
Note: There is no registration fee, and the process is self-declaratory.
Essential Documents Required for Registration
Aadhaar Card Requirements Based on Business Type
PAN Card link with GSTIN (if applicable)
Business Address and Investment Details
Bank Account Details
GST Information (if applicable)
Post-Registration Management and Compliance
How to Download Your Udyam Registration Certificate?
To download your Udyam Registration Certificate – visit the official Udyam registration website
Enter your Udyam Registration Number, mobile number
Select your preferred OTP method
‘Validate & Generate OTP’
After entering the received OTP, now you can login
click on ‘Print Udyam Certificate’
Updating and Verifying Your Registration Details
To update and verify details –
Log in to the Udyam portal – https://udyamregistration.gov.in/UAM-convert-udyam-msme-free-registration.htm
Select the ‘Update’ option
Verify your Aadhaar and PAN details
Update business information like address or turnover
Review and submit the updates for verification
Download the revised certificate once approved.
ToraTax provides reliable Udyam registration services across 100+ cities in India. Whether your business is located in Delhi NCR, Mumbai, Bangalore, Chennai, Lucknow, or anywhere else we serve, we’re your trusted partner for MSME registration and compliance.
FAQs
• Is Udyam registration mandatory?
While Udyam registration is not legally mandatory for all businesses, it is highly recommended and in
many cases, essential to avail a wide range of government benefits.
• How long does it take to get the Udyam certificate?
The Udyam registration number is generated instantly upon successful submission of the application.
• Is PAN mandatory for Udyam registration?
Yes, PAN is mandatory for Udyam registration.
• Can I register if my business does not have a GSTIN?
Yes, you can register without a GSTIN if your business is not legally required to have one.
• Can a person have more than one Udyam registration?
No, an enterprise can only have one Udyam registration number.
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