MSME (Udyam) Registration
In short
Udyam registration is the government's registration for micro, small and medium enterprises (MSMEs). It is free, paperless and based on Aadhaar and PAN, and is made on the official Udyam Registration portal. Enterprises are classified as micro, small or medium based on their investment in plant and machinery or equipment and their turnover.
Overview
Udyam registration unlocks MSME benefits such as priority-sector lending, protection against delayed payments from buyers under the MSMED Act, 2006, preferences in government procurement and eligibility for various central and state schemes.
The thresholds for each category are notified by the government and have been revised over time. Classification is updated automatically using data from income tax returns and GST filings.
Key requirements
- Aadhaar of the proprietor, managing partner or authorised signatory
- PAN of the enterprise (and GSTIN where applicable)
- Investment and turnover within MSME limits
Documents required
- Aadhaar of the applicant
- PAN of the business
- Bank account details
- Basic details of business activity (NIC code), employees and investment
We share an exact checklist for your case before you start, since requirements vary with the structure and the people involved.
Process
Details
We collect the enterprise details and choose the correct activity codes.
Filing
The registration is filed on the Udyam portal with Aadhaar authentication.
Certificate
The Udyam Registration Certificate is issued online.
What KNAP Advisory handles
- Activity code selection
- Udyam portal filing
- Updates to the registration when details change
Frequently asked questions
Is there a fee for Udyam registration?
No. Registration on the official Udyam portal is free. Be wary of sites that look official and charge a fee.
Does Udyam registration need to be renewed?
No. It does not expire, but the details should be kept up to date.
How does MSME registration help with late payments?
Under the MSMED Act, buyers must pay registered micro and small suppliers within the agreed period, capped at 45 days. Delayed payments attract compound interest, and the supplier can approach the MSME Facilitation Council.