A step-by-step guide for Udyam Registration Process

New Delhi (India), April 8:  The term “Udyam registration” refers to the online registration process introduced by the Indian government for micro, small, and medium enterprises (MSMEs) in India. This registration is mandated under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. It aims to simplify the registration process for MSMEs and provide them with various benefits and support from the government.

Through Udyam registration online, MSMEs can obtain a unique identification number known as the Udyam Registration Number (URN). This number serves as proof of their registration as an MSME enterprise. The registration process involves providing basic details about the business, such as Aadhaar number, PAN card details, business name, type of enterprise, and other relevant information.

The Udyam registration portal is operated by the Ministry of Micro, Small, and Medium Enterprises (MSME) of the Government of India. Once registered, MSMEs can avail themselves of various benefits such as easier access to credit, subsidies, and government schemes specifically designed to support MSMEs. Additionally, it facilitates the integration of MSMEs into the formal economy and enhances their visibility for business opportunities.

MSME Registration Classification

In India, the Ministry of Micro, Small, and Medium Enterprises (MSME) has introduced the Udyam Registration process, which replaced the earlier system of MSME registration. Under this scheme, businesses are classified based on their investment in plant and machinery or equipment, as well as their annual turnover.

The classification criteria were as follows:

  • Micro Enterprises: Firms with investment in plant and machinery or equipment not exceeding Rs. 1 crore and turnover not exceeding Rs. 5 crore.
  • Small Enterprises: Businesses with investment in plant and machinery or equipment of more than Rs. 1 crore but not exceeding Rs. 10 crore, and turnover of more than Rs. 5 crore but not exceeding Rs. 50 crore.
  • Medium Enterprises: Entities with investment in plant and machinery or equipment more than Rs. 10 crore but not exceeding Rs. 50 crore, and a turnover of more than Rs. 50 crore but not exceeding Rs. 250 crore.

Eligibility for Udyam Registration

To qualify for Udyam Registration, a business must adhere to the following criteria:

  • Micro, Small, or Medium Enterprise: The enterprise should be classified as micro, small, or medium, based on its investment in plant and machinery or equipment, as per the MSME Act, 2006.
  • Any type of business entity such as a sole proprietorship, partnership firm, limited liability partnership (LLP), private limited company, or any other entity can apply for Udyam Registration.
  • The entity must be engaged in manufacturing, production, processing, or preservation of goods or must be involved in providing or rendering services.
  • The entity must have a valid Permanent Account Number (PAN) and Goods and Services Tax Identification Number (GSTIN).

Documents Required During Udyam Registration

To register under the Udyam Registration portal, which is part of the Indian government’s initiative to support micro, small, and medium enterprises (MSMEs), you typically need the following documents and information:

  • PAN Card: The PAN (Permanent Account Number) of the business owner or authorized signatory is needed.
  • Business Details: Information about the business entity, such as name, type, address, contact details, etc.
  • Bank Details: Bank account number, IFSC code, and branch details of the business entity.
  • Business Activity: Details regarding the type of business activity carried out by the enterprise.
  • Employment Details: Information on the number of people employed in the business.
  • Additional Information: Any other relevant information related to the business as required by the Udyam Registration portal.

These are the basic documents and information required for Udyam Registration. However, depending on the nature of the business and specific requirements, additional documents or details may be requested during the registration process.

Process of Udyam Registration

The process of obtaining Udyam Registration involves the following steps:

  • Visit the Udyam Registration Portal:

Access the Udyam registration portal at

  • Fill in Details:

Enter all the required details accurately in the registration form. This includes personal details, business details, and other relevant information.

  • Verification:

Verify the details entered in the form and ensure accuracy. Any incorrect information may lead to delays or rejection of the registration.

  • Submit Application:

After completing the form, submit the application.

  • Payment of Fee

Make a successful payment for udyam registration application.

  • Generation of URN:

Upon successful submission and verification of the application, a unique Udyam Registration Number (URN) will be generated and provided to the user.

  • Print Certificate:

On receiving the URN, the user can download and print the Udyam Registration Certificate from the portal.

  • Validity:

The registration is valid for a lifetime unless the enterprise outgrows the definition of an MSME or voluntarily cancels the registration.

In conclusion, Udyam Registration offers a streamlined process for Indian micro, small, and medium enterprises (MSMEs) to obtain government recognition and access benefits. By adhering to eligibility criteria and submitting necessary documents, businesses can secure their unique identification number and unlock growth opportunities. With its simplified steps & lifetime validity, Udyam Registration stands as a pivotal tool in integrating MSMEs into the formal economy and fostering their development within the Indian business landscape.

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