How do I get Udyam (MSME) registration, and what are the current limits?

Classification (from 1 April 2025)

Both tests apply; crossing either moves the enterprise up. Investment is the written-down value of plant, machinery and equipment as per the income-tax return, excluding land and buildings. Export turnover is excluded from turnover.

How to register

1. Go to udyamregistration.gov.in (the only official portal; registration is free).
2. Enter the Aadhaar of the proprietor, managing partner, karta or authorised director, and verify by OTP.
3. Enter the business PAN; details are fetched from the income-tax and GST records.
4. Give the activity (manufacturing or services), NIC codes, bank details and employees.
5. The Udyam certificate is issued online, with a permanent registration number.

Micro enterprises without a PAN or GSTIN can use the Udyam Assist Platform. Traders can register for priority-sector lending only.

Benefits

• Delayed payments: buyers must pay micro and small suppliers within 45 days, or pay compound interest at three times the bank rate; disputes go to the MSE Facilitation Council (MSME Samadhaan).
• Income tax: buyers lose their deduction for late payments to micro and small suppliers (section 43B(h) of the 1961 Act, now section 37 of the 2025 Act), which encourages timely payment.
• Credit: priority-sector lending and collateral-free loans under the CGTMSE scheme.
• Government purchases: a share of procurement reserved for micro and small enterprises, and exemption from earnest money in many tenders.

Keep it current

Update the registration if the business details change. The category is reworked each year from the income-tax and GST data, so check it after each return is filed.