In this guide
Businesses seeking MSME recognition in India can register online through the Government’s Udyam Registration system. The process is paperless, based largely on self-declaration and does not carry any Government registration fee.
Applicants should use only the official Government Udyam portal and avoid websites that imitate the registration service and charge unnecessary fees. The Ministry of MSME also confirms that Udyam Registration is completely free and that no private agency is authorised to conduct the Government registration process on its behalf.
New MSME Limits Applicable in 2026
One of the most important changes is the revised MSME classification effective from 1 April 2025.
The current limits are:
| MSME Category | Investment in Plant & Machinery/Equipment | Annual Turnover |
|---|---|---|
| Micro Enterprise | Up to ₹2.5 crore | Up to ₹10 crore |
| Small Enterprise | Up to ₹25 crore | Up to ₹100 crore |
| Medium Enterprise | Up to ₹125 crore | Up to ₹500 crore |
Both conditions are relevant to classification. Businesses should therefore not rely on turnover alone when determining whether they are Micro, Small or Medium.
The earlier limits—₹1 crore/₹5 crore for Micro, ₹10 crore/₹50 crore for Small and ₹50 crore/₹250 crore for Medium—ceased to be the applicable classification limits from 1 April 2025.
Is Udyam Registration Free?
Yes.
Udyam Registration is:
- Online;
- Paperless;
- Based on self-declaration;
- Free of Government filing fees; and
- Issued with a permanent Udyam Registration Number.
No documents or certificates ordinarily need to be uploaded during registration. After successful registration, an electronic Udyam Registration Certificate is issued with a dynamic QR code. The registration does not require periodic renewal.
Details Required for Udyam Registration
Although the process is paperless, keep the following information ready:
- Aadhaar details;
- PAN;
- GSTIN, where applicable;
- Mobile number and email;
- Enterprise name;
- Office and plant/unit addresses;
- Bank account number and IFSC;
- Date of incorporation/commencement;
- Business activities;
- NIC codes; and
- Employee details.
Investment and turnover information is substantially integrated with Government databases, including Income Tax and GST systems.
For assistance with maintaining business records and financial information:
Whose Aadhaar Is Required?
The correct Aadhaar depends on the type of organisation.
For a proprietorship, the proprietor’s Aadhaar is used.
For a partnership firm, the Aadhaar of the managing partner is required.
For an HUF, the Karta’s Aadhaar is required.
For a company, LLP, cooperative society, society or trust, the organisation or its authorised signatory must provide the required Aadhaar details together with the organisation’s PAN and GSTIN as applicable.
Therefore, Aadhaar begins the authentication process, but applicants should not interpret “Aadhaar-based registration” as meaning PAN and GST details are never required.
Step-by-Step Udyam Registration Process
1. Complete Aadhaar Verification
Enter the required Aadhaar number and the name exactly as appearing on Aadhaar.
An OTP is sent for Aadhaar authentication.
2. Complete PAN Verification
Select the organisation type and enter the applicable PAN.
For example:
- Proprietorship — proprietor’s PAN;
- Partnership — firm’s PAN;
- Company — company’s PAN.
The official registration form separately provides Aadhaar verification followed by PAN verification and enterprise details.
3. Review Auto-Populated Financial Information
Where available, information connected with Income Tax and GST databases can be fetched through the Government system.
Do not blindly accept auto-populated figures. Check whether the information corresponds with the enterprise’s actual filings and records.
4. Enter Enterprise and Unit Details
Provide:
- Name of enterprise;
- Official business address;
- Plant/unit locations;
- Mobile and email;
- Commencement details; and
- Other required enterprise information.
5. Select the Correct NIC Code
NIC—National Industrial Classification—codes identify the activities carried on by the enterprise.
Applicants should select codes based on the actual nature of their manufacturing, service or permitted trading activities.
One enterprise does not need separate Udyam registrations merely because it conducts several activities. The Government expressly provides that an enterprise should have only one Udyam Registration, while multiple manufacturing and/or service activities may be added to that registration.
Selecting inaccurate NIC codes merely to obtain MSME benefits should be avoided.
Can Traders Obtain Udyam Registration?
Retail and wholesale trade activities were added to the Udyam framework through Ministry of MSME directions in 2021. The Ministry’s official circular repository continues to list the notification adding retail and wholesale trade activities for Udyam Registration.
However, registration should not be interpreted as guaranteeing every MSME scheme benefit. Eligibility for a particular subsidy, credit programme, tender concession or other scheme must be checked under the rules of that specific programme.
Why Is Udyam Registration Useful?
Udyam Registration provides an official MSME identity and can support access to various MSME-focused systems.
The Government portal highlights integrations with platforms such as Government e-Marketplace, procurement systems, TReDS and MSME Samadhaan.
Registration can therefore be important when dealing with:
- MSME financing;
- Government procurement;
- Delayed-payment mechanisms;
- Tender-related MSME benefits; and
- Eligible Government schemes.
But obtaining an Udyam number does not automatically approve a loan, subsidy or tender preference.
For business and regulatory assistance:
Can You Register More Than One Business Activity?
Yes, multiple activities can be included under one enterprise registration.
The official rules specifically state that no enterprise should file more than one Udyam Registration, while any number of manufacturing or service activities may be specified or subsequently added.
Businesses with several plants or activities should therefore update the existing registration correctly instead of creating duplicate Udyam numbers for the same enterprise.
Frequently Asked Questions
Is MSME and Udyam Registration the same thing?
Udyam Registration is the current Government registration mechanism through which an eligible enterprise obtains formal MSME recognition.
What are the Micro Enterprise limits in 2026?
Investment in plant and machinery/equipment must not exceed ₹2.5 crore and turnover must not exceed ₹10 crore.
Is any Government fee payable for Udyam Registration?
No. Official Udyam Registration is free of cost.
Do I need to upload balance sheets, PAN cards or bank statements?
The Government describes Udyam Registration as paperless and self-declaration based, with no requirement to upload documents or proof for registration. PAN/GST-linked information is obtained through integrated Government databases where applicable.
Does Udyam Registration expire?
No periodic renewal is required. The Government issues a permanent Udyam Registration Number and an online certificate.
Can I add more business activities later?
Yes. Multiple eligible activities can be included under the same Udyam Registration, rather than creating a fresh registration for each activity.
