Udyam Registration (formerly UDYOG Aadhaar) is the official MSME (Micro, Small, and Medium Enterprise) registration process for businesses in India. It's free, online, and based on self-declaration. Over 3 crore businesses are registered on the Udyam portal. Here's why you should register and how to do it in 2026.
MSME Classification — Investment & Turnover Criteria
| Category | Plant & Machinery Investment | Annual Turnover |
|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹5 crore |
| Small Enterprise | Up to ₹10 crore | Up to ₹50 crore |
| Medium Enterprise | Up to ₹50 crore | Up to ₹250 crore |
Benefits of Udyam Registration
- Priority Sector Lending (PSL): Banks must lend 7.5% of their net credit to MSMEs — easier and cheaper loans
- Credit Guarantee Fund Trust for MSMEs (CGTMSE): Collateral-free loans up to ₹2 crore
- MSME payment protection: Buyers must pay within 45 days; delayed payment attracts 3× bank rate interest
- Government tender reservations: 25% of procurement reserved for MSMEs (4% for SC/ST MSMEs)
- Electricity subsidy and lower tariffs (state-specific)
- Subsidies on ISO certification, quality certification, technology upgradation
- Direct access to GeM (Government e-Marketplace) seller registration
- Protection against delayed payments under MSME Development Act 2006
How to Register on Udyam Portal
- Visit udyamregistration.gov.in
- Click 'For New Entrepreneurs who are not Registered as MSME or those with EM-II'
- Enter Aadhaar number of proprietor/director/partner + validate with OTP
- Enter PAN (mandatory for turnover above ₹10 crore)
- Enter business details: name, type of organisation, date of commencement, NIC code (activity)
- Enter investment in plant & machinery and expected annual turnover
- Submit — certificate issued instantly with Udyam Registration Number (URN)
Who Can Register?
All business entities — proprietorships, partnership firms, LLPs, private limited companies, cooperative societies, NGOs and trusts (for businesses) can register. Even if you haven't formally registered a business entity (running as a sole proprietor), you can get Udyam Registration using your Aadhaar. It's completely free and valid for the lifetime of the enterprise (no renewal needed). Existing MSME registrations (EM-II or UAM) were automatically migrated — if you have an old number, re-validate it on the Udyam portal.