Udyam registration is the official way for a business to be recognised as a micro, small or medium enterprise in India. It replaced the earlier Udyog Aadhaar system and is completed on the government's Udyam portal.
How MSMEs are classified
Classification is based on two measures together: investment in plant, machinery or equipment, and annual turnover. The limits for micro, small and medium are notified by the government and have been revised over the years, so check the current criteria before you register.
What you need
- Aadhaar of the proprietor, managing partner or authorised signatory
- PAN of the business (and GSTIN where applicable)
- Basic details of the business, activity and bank account
Investment and turnover figures are largely picked up from income tax and GST records linked to your PAN, which is why accurate filings matter.
Why it matters
Many central and state schemes, some bank loan products and certain public procurement preferences refer to Udyam status. Registration does not by itself entitle you to any benefit — each scheme has its own conditions — but it is often the first requirement.
This article is general information, not legal, tax or financial advice. Rules, limits and fees change — check the official portal or speak to us about your specific situation.