Introduction

Micro, Small and Medium Enterprises (MSMEs) are the backbone of India’s economy, contributing significantly to employment, innovation, and industrial growth. To support and empower these businesses, the Government of India introduced the Udyam Registration Portal — a completely online, paperless system that replaces the earlier Udyog Aadhaar MSME registration.

Whether you're starting a new business or formalising an existing one, obtaining Udyam Registration provides legal recognition and access to various incentives, subsidies, loans, and government schemes.

This guide explains the eligibility, documentation, registration process, benefits, and postregistration updates for MSMEs as per the latest 2025 norms.

What Is Udyam Registration?

Udyam Registration is the official government certification for Micro, Small, and Medium Enterprises under the MSME Development Act, 2006.

It provides a unique Udyam Registration Number (URN) and an e-certificate, which serves as your MSME identity for availing:

• Subsidies

• Priority sector lending

• Government tenders

• Tax benefits

• Credit guarantee schemes

Registration is free, fully online, and based on self-declaration—no documents are physically uploaded.

MSME Classification (As per Latest 2025 Criteria)

Businesses are classified into MSME categories based on investment in plant & machinery an annual turnover:

Penalties for Non-Compliance

Documents & Information Required

No physical documents are needed. Ensure you have:

For Proprietorship:

• Aadhaar number of the owner

• PAN of the business/individual

• GST details (if applicable)

• Mobile number linked with Aadhaar

For Partnership / LLP / Company:

• PAN of the entity

• Aadhaar of authorised signatory

• GSTIN of the entity

• Company registration details

Step-by-Step Udyam Registration Process

Step 1: Visit the Official Udyam Portal

Go to https:/ udyamregistration.gov.in

Step 2: Register Using Aadhaar

Depending on business type:

• Proprietors: Aadhaar of owner

• Company/LLP: Aadhaar of authorised signatory

Validation via OTP is mandatory.

Step 3: Enter PAN & Business Details

The portal auto-fetches:

• PAN details

• ITR information

• GST turnover (if GSTIN exists)

You must enter:



• Type of organisation

• Address

• Bank details

• Number of employees

• Business activity (manufacturing/services)

Step 4: Submit & Validate

The portal matches the filled details with CBDT/GST databases

Step 5: Receive URN & MSME Certificate

You instantly get:

• Udyam Registration Number (URN)

• E-certificate of MSME recognition

Both are permanently available online.

Benefits of Udyam Registration

✔ Priority Sector Lending

Banks earmark a special lending quota for MSMEs with simplified collateral norms.

✔ Subsidies & Incentives

Including:

• Capital & interest subsidies

• Technology upgradation schemes

• ISO certification reimbursement

• Patent & trademark subsidies

✔ Eligibility for Government Tenders

Many tenders exclusively allow MSMEs to participate with:

• Exemption from EMD

• Relaxations in turnover/experience criteria

✔ Protection Against Delayed Payments

Buyers must pay within 45 days, failing which compound interest is applicable under MSME Act.

✔ Access to GeM Portal

MSMEs can list and sell products to government departments directly.

✔ Easier Business Loans

Eligibility for:

• CGTMSE collateral-free loans

• Mudra loans

• Stand-up India schemes

Post-Registration Responsibilities

1. Update Details Annually

If turnover or investment changes, update your Udyam profile

2. Link GSTIN (Mandatory for GST taxpayers)

Ensures automatic data fetch and compliance.

3. Reclassification

If your business grows beyond limits, Udyam category updates automatically

Conclusion

Udyam Registration is essential for MSMEs looking to formalise operations, access easier credit, receive government incentives, and gain competitive benefits in tenders. The simple, one-time registration ensures long-term advantages and recognises your business under the MSME framework

Bisways Consulting Group supports businesses across India in obtaining Udyam Registration, updating details, linking GSTIN, resolving portal errors, and ensuring eligibility for MSME schemes and benefits.