Investment limits enhanced 2.5× and turnover limits doubled under Notification S.O. 1364(E) dated 21 March 2025 (Union Budget 2025). Additional benefits announced under Budget 2026–27.
MSME / Udyam Registration — Unlock Benefits, Grow Faster
Register your enterprise as a Micro, Small or Medium Enterprise under the MSMED Act, 2006. Get your permanent Udyam Registration Number (URN) — paperless, self-declaration-based, no renewal required. Completed in one working day.
Overview
What is MSME Registration?
The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides the statutory framework for recognition, support and promotion of MSMEs in India. Every enterprise meeting the classification criteria may obtain a Udyam Registration Certificate — a free, permanent, government-issued identity document for MSMEs — through the Udyam Registration Portal (udyamregistration.gov.in).
Udyam Registration is the single unified registration platform that replaced the earlier EM-Part I & II, Udyog Aadhaar Memorandum (UAM) and older MSME registrations from 1 July 2020. All existing UAM-registered enterprises were migrated or required to re-register on the Udyam portal.
The registration is entirely paperless and self-declaration-based — pre-filled from PAN and GST databases. There is no government fee for registration, and no renewal is required. The Udyam Registration Number (URN) and Udyam Registration Certificate are permanent documents.
Mandatory from 1 April 2021: PAN and GSTIN are mandatory for Udyam Registration from 1 April 2021. Enterprises not required to obtain GST registration are exempt from the GST requirement. The registration auto-migrates the enterprise to the next category if turnover/investment limits are crossed — based on the ITR filed for the preceding financial year, updated annually on the Udyam portal.
Key Features
Udyam Registration — Highlights
- Permanent registration — no renewal, no expiry as long as the enterprise remains within MSME limits
- Completely paperless and free — no documents to upload; data auto-fetched from Income Tax and GSTN databases
- A single Udyam Registration Number covers all activities (manufacturing and service both) of the enterprise — no separate registrations
- All GSTINs under the same PAN are treated as one enterprise — investment and turnover aggregated across all units
- Classification is updated automatically every year based on the ITR filed for the previous financial year
- Registration gives access to GeM (Government e-Marketplace) for B2G sales and government procurement
- Enables onboarding on SAMADHAAN Portal for delayed payment complaints and on TReDS platforms for invoice discounting
- Basis for availing benefits under all Ministry of MSME schemes — Credit Guarantee, Technology Upgradation, ZED Certification, etc.
Classification Criteria
MSME Classification — Revised Limits (w.e.f. 1 April 2025)
Under Notification S.O. 1364(E) dated 21 March 2025, issued by the Ministry of MSME under Section 7(1) of the MSMED Act, 2006. Investment limits enhanced 2.5 times and turnover limits doubled from the previous 2020 thresholds. Both investment and turnover must be within limits — crossing either criterion moves the enterprise to the next higher category.
Micro
Small
Medium
Composite Criterion Rule (MSMED Act, 2006):
Classification is based on a composite criterion — both investment in plant & machinery/equipment and annual turnover must be within the limits. If an enterprise crosses the ceiling in either criterion, it moves to the next higher category. However, it will not be downgraded to a lower category unless it falls below the limits in both criteria.
Annual update: Investment and turnover are updated automatically from ITR data on the Udyam portal every year. The reclassification takes effect from 1 April of the financial year following the year in which the change occurs (Para 8(6), Notification S.O. 2119(E)).
PAN-level aggregation: All GSTINs under the same PAN are treated as one enterprise — investment and turnover across all units are aggregated before determining the category.
Old vs New Classification — Quick Reference
| Category | Old Investment (S.O. 2119(E), 2020) | New Investment (S.O. 1364(E), 2025) | Old Turnover (2020) | New Turnover (2025) | Change |
|---|---|---|---|---|---|
| Micro | ≤ ₹1 Crore | ≤ ₹2.5 Crore | ≤ ₹5 Crore | ≤ ₹10 Crore | Investment 2.5× · Turnover 2× |
| Small | ≤ ₹10 Crore | ≤ ₹25 Crore | ≤ ₹50 Crore | ≤ ₹100 Crore | Investment 2.5× · Turnover 2× |
| Medium | ≤ ₹50 Crore | ≤ ₹125 Crore | ≤ ₹250 Crore | ≤ ₹500 Crore | Investment 2.5× · Turnover 2× |
Why Register
Benefits of Udyam / MSME Registration
A Udyam Registration Number unlocks a comprehensive ecosystem of government support — credit, procurement, protection and export incentives — that is unavailable to unregistered enterprises.
Priority Sector Lending
All bank loans to MSMEs are classified under Priority Sector Lending (PSL) as per RBI Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020. Banks are required to allocate a target portion of their lending to MSMEs, improving credit access and often at preferential interest rates.
Collateral-Free Credit — CGTMSE
Micro and Small Enterprises can avail collateral-free credit up to ₹10 Crore (enhanced from ₹5 Crore, Budget 2026–27) under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. Lenders are guaranteed against default — making credit access significantly easier.
Public Procurement Policy
The Government of India's Public Procurement Policy for MSEs mandates that at least 25% of all central government and CPSE procurement be sourced from Micro and Small Enterprises — with 4% reserved for SC/ST entrepreneurs and 3% for women-owned MSEs. Udyam registration is mandatory to participate.
GeM — Government e-Marketplace
Udyam-registered MSMEs can onboard on GeM (gem.gov.in) — India's national government procurement portal for B2G sales. Registered MSMEs get special visibility, preferential bidding rights and simplified onboarding. GeM processes lakhs of crores in government transactions annually.
Udyam Credit Cards — Budget 2025
The Union Budget 2025 announced customised Credit Cards with ₹5 Lakh limit for Micro Enterprises registered on the Udyam portal. 10 lakh such cards will be issued in the first year — providing instant, collateral-free working capital at competitive rates.
Payment Protection — Sec 43B(h) ITA
Buyers purchasing goods/services from Micro or Small Enterprises must pay within 45 days (15 days if no written agreement). Under Section 43B(h) of the Income Tax Act, unpaid amounts beyond this limit are disallowed as a business expense for the buyer — creating a strong legal incentive for timely payment to MSMEs.
SAMADHAAN — Delayed Payment Portal
MSMEs facing delayed payments can file online applications on the SAMADHAAN Portal — a Ministry of MSME initiative. Cases are automatically taken up with the Micro and Small Enterprises Facilitation Council (MSEFC) of the respective state. Mandatory MSME-1 filing by companies under MCA is a related compliance.
TReDS — Invoice Discounting
MSME invoices can be discounted on the Trade Receivables Discounting System (TReDS) — an RBI-regulated platform for unlocking working capital against trade receivables before payment due dates. Three operational platforms: Invoicemart (invoicemart.com), M1xchange (m1xchange.com), and RXIL (rxil.in). CPSEs are now mandated to use TReDS (Budget 2026–27).
Export Credit Guarantee
Well-run exporter MSMEs can avail term loan guarantee cover up to ₹20 Crore for export-related financing (announced Budget 2025). The Export Promotion Mission — driven jointly by Commerce, MSME and Finance ministries — provides cross-border factoring support and helps MSMEs tackle non-tariff barriers in overseas markets.
Technology Upgradation Schemes
Access to the Credit Linked Capital Subsidy Scheme (CLCSS) and MSME Technology Centre network for machinery upgradation, lean manufacturing, energy audits and ZED (Zero Defect Zero Effect) Certification — enabling MSMEs to compete globally on quality and sustainability.
Cheaper IPR Fees
MSME-registered enterprises (Small Enterprises) benefit from significantly reduced government fees for Trademark registration (₹4,500 vs ₹9,000), Patent filing (~80% reduction), and Design registrations — supporting brand building and innovation without heavy upfront costs.
SME Growth Fund — Budget 2026–27
Budget 2026–27 announced a new ₹10,000 Crore SME Growth Fund and a ₹2,000 Crore enhancement to the SRI Fund — channelled through Alternate Investment Funds (AIFs) into MSME equity and quasi-equity. A new scheme for 5 lakh women, SC/ST first-time entrepreneurs was also announced.
Documents Required
What You Need for Udyam Registration
Udyam Registration is paperless — no physical documents are uploaded. The portal auto-fetches data from the Income Tax and GST databases using your PAN and Aadhaar. The following information must be available:
- Aadhaar Number of the proprietor / managing partner / authorised signatory (with mobile number linked to Aadhaar for OTP)
- PAN Card of the enterprise (individual PAN for proprietorship; firm/company PAN for others) — mandatory from 1 April 2021
- GSTIN (GST Registration Certificate) — mandatory from 1 April 2021 if the enterprise is required to register under GST
- Name and type of enterprise / organisation and its location (plant, office, machinery address)
- Bank account details — account number and IFSC of the enterprise's bank account
- Nature of business activity — list of goods and/or services provided (NIC codes will be selected)
- Date of commencement of business and, if previously registered under UAM/EM, the earlier registration details
- Mobile number and email ID of the authorised person (for OTP and communication)
No fee, no documents uploaded: The Udyam portal does not require uploading of any documents. All data is verified directly from UIDAI (Aadhaar), CBDT (PAN/ITR) and GSTN databases. The entire registration process takes 15–30 minutes and the Udyam Certificate is generated instantly on successful registration.
Entity-wise Requirements
Who Registers — Whose Aadhaar?
| Entity Type | Aadhaar of | PAN of |
|---|---|---|
| Proprietorship | Proprietor | Proprietor (individual PAN) |
| Partnership Firm | Managing Partner | Firm PAN |
| Hindu Undivided Family (HUF) | Karta | HUF PAN |
| Company (Pvt/Public) | Authorised Signatory (Director) | Company PAN |
| LLP | Designated Partner | LLP PAN |
| Co-operative Society | Authorised Person | Society PAN |
| Trust | Trustee | Trust PAN |
| Self Help Group (SHG) | Authorised Person | SHG PAN (if available) |
Existing UAM / EM Registrations: Enterprises registered under Udyog Aadhaar Memorandum (UAM) or earlier EM-Part I/II registrations were required to re-register on the Udyam portal. If you have an old MSME registration from before July 2020, it must be migrated to the Udyam portal to avail current government schemes and for Sec 43B(h) compliance. We assist with migration and verification.
Our Process
Udyam Registration — How We Do It
We handle the entire registration on your behalf — from verifying your eligibility and NIC code selection to filing and delivering your Udyam Certificate.
Eligibility Check
We verify your investment in plant & machinery and annual turnover against the revised 2025 limits to confirm your correct MSME category.
Information Gathering
We collect your Aadhaar, PAN, GSTIN, bank details, business activities and plant/office address. No physical documents required.
Portal Filing
We file the application on udyamregistration.gov.in. Data is auto-verified from UIDAI, CBDT and GSTN. Aadhaar OTP is required from you at this stage.
NIC Code Selection
We correctly identify and map your business activities to National Industrial Classification (NIC) Codes — covering all manufacturing and service activities in one registration.
Certificate Delivery
The Udyam Registration Certificate with your permanent Udyam Registration Number (URN) is generated instantly and delivered to your registered email. The QR-coded certificate is downloadable anytime from the portal.
Tax Compliance
Section 43B(h) — Buyer's Compliance
Section 43B(h) of the Income Tax Act (inserted by Finance Act 2023, effective from Tax Year 2023–24 / AY 2024–25) provides that any sum payable to a Micro or Small Enterprise shall be allowed as a deduction in the year of payment only — not on accrual — unless paid within the time mandated under Section 15 of the MSMED Act.
The payment timeline under Section 15, MSMED Act is:
- 15 days — if no written agreement exists between buyer and MSME
- 45 days maximum — even where a written agreement specifies a longer period
If payment is not made within these timelines, the unpaid amount is disallowed as a business expense for the buyer in that financial year — increasing the buyer's taxable income.
MSME-1 Filing by Companies: Companies with payments due to MSMEs exceeding 45 days must file a half-yearly return MSME-1 with the Ministry of Corporate Affairs — reporting outstanding amounts and reasons for delay. Failure to file attracts penalties under the Companies Act, 2013. CBCA Circular No. 23/2025 has amended Form 3CD to require tax auditors to also report MSME payment compliance.
Who is Affected by Sec 43B(h)?
- Any enterprise — company, firm, LLP, proprietorship, AOP — that purchases goods or services from a Micro or Small Enterprise
- Applies regardless of whether the buyer is an MSME or not
- Applies to Micro and Small Enterprises only — Medium Enterprises are not covered
- The MSME must have a valid Udyam Registration Certificate for the protection to apply
- Both manufacturing and service MSMEs are covered
- Interest on delayed payment accrues at 3× the RBI Bank Rate — compounded monthly — payable by the buyer to the MSME
Action for buyers: Maintain a register of all MSME vendors (check their Udyam Certificates). Ensure payments within 45 days. File MSME-1 returns on time. We provide MSME vendor verification and compliance advisory services.
FAQs
Frequently Asked Questions
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Free Consultation
Not sure whether your enterprise qualifies as MSME under the new limits? Book a free call with our team — we verify your classification and advise on next steps.
Register Today
Get Your Udyam Certificate in One Day.
Free government registration. Permanent. No renewal. Unlock Priority Sector Lending, Credit Guarantee, GeM, TReDS and all MSME benefits — starting today.
