MSME/Udyam Registration

Overview

MSME (Udyam) Registration in India.

MSME (Micro, Small, and Medium Enterprises) registration in India, known as Udyam Registration, is a government initiative to support and promote small businesses. Launched on July 1, 2020, by the Ministry of Micro, Small and Medium Enterprises, the Udyam Registration process is completely online, paperless, and free of cost. It replaces the earlier system of Udyog Aadhaar and simplifies registration for enterprises.

Under this system, businesses are classified based on investment in plant and machinery/equipment and annual turnover. As per the latest definition, micro enterprises have investment up to ₹1 crore and turnover up to ₹5 crore, small enterprises up to ₹10 crore investment and ₹50 crore turnover, and medium enterprises up to ₹50 crore investment and ₹250 crore turnover.

Any business—whether proprietorship, partnership, company, or others—can register on the official Udyam Registration portal using their Aadhaar number. Once registered, enterprises receive a permanent Udyam Registration Number and a certificate.

Benefits include priority sector lending, subsidies, tax exemptions, easier access to government tenders, and protection under delayed payment provisions. Udyam Registration empowers MSMEs to grow, formalize operations, and gain credibility in the market, playing a vital role in India’s economic development.