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Startup ยท Tax & GST

MSME / Udyam Registration

Government recognition and benefits for micro, small & medium enterprises.

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Udyam registration is free of cost and self-declared โ€” there is no government fee for registration or for updating your classification.

What is MSME / Udyam Registration?

Udyam Registration is the official government registration for Micro, Small, and Medium Enterprises based on investment and turnover criteria, unlocking access to priority-sector lending, subsidy schemes, and delayed-payment protection under the MSME Development Act, 2006.

Udyam registration is entirely online, self-declaration-based, and free of cost โ€” there is no document upload requirement in most cases, since the system pulls your PAN and GST-linked investment and turnover figures directly from government databases, which is also why keeping your PAN and GST filings current and accurate matters for maintaining the correct classification.

Classification thresholds (investment in plant & machinery/equipment, and annual turnover) are reviewed periodically by the government and can shift โ€” a business that graduates from Micro to Small, or from Small to Medium, is expected to update its Udyam classification accordingly rather than continuing to claim benefits under an outdated category.

Who Needs It

Small and medium manufacturers or service businesses
Startups wanting priority-sector lending and MSME loan schemes
Businesses selling to buyers who prefer/require MSME-registered vendors
Manufacturing or service businesses wanting protection against delayed payments under the MSME Act
Startups applying for schemes, subsidies, or exhibitions that require Udyam registration as an eligibility criterion

Types & Categories

Micro Enterprise

Investment up to โ‚น2.5 crore and turnover up to โ‚น10 crore.

Small Enterprise

Investment up to โ‚น25 crore and turnover up to โ‚น100 crore.

Medium Enterprise

Investment up to โ‚น125 crore and turnover up to โ‚น500 crore.

Key Benefits

Access to collateral-free priority-sector loans and subsidy schemes
Legal protection against delayed payments from buyers under MSME law
Preferential treatment in government tenders and GeM procurement
Free, instant, self-declaration-based registration with no document upload in most cases
Access to reduced rates or exemptions on certain government fees, and easier eligibility for specific tax/scheme benefits over time

Documents Required

  • Aadhaar of the proprietor/authorised signatory
  • PAN and GST registration of the business
  • Business investment and turnover details
  • Bank account details of the enterprise
  • Details of business activity (NIC code) and number of employees

Our Process

1

Eligibility Classification

We classify your business as Micro, Small, or Medium based on investment/turnover criteria.

2

Data Verification

We verify that your PAN and GST-linked investment/turnover figures are accurate and current, since Udyam draws these automatically.

3

Online Registration

The Udyam registration is filed on the government portal with self-declared details.

4

Udyam Certificate

The Udyam Registration Certificate is issued instantly upon successful filing.

5

Ongoing Classification Review

We periodically review whether your growing investment/turnover has shifted you into a new category (Micro to Small, etc.) so your registration stays accurate.

Frequently Asked Questions

Does Udyam registration expire?

No fixed expiry, but your classification (Micro/Small/Medium) is reviewed based on updated turnover and investment figures over time, linked to your GST and IT filings.

Is there any fee for Udyam registration?

No โ€” Udyam registration is completely free of cost through the official government portal; be cautious of third-party sites charging a fee for what is a free government process.

Can a business be registered under more than one Udyam classification?

No โ€” a single enterprise (identified by PAN) holds one Udyam registration reflecting its current classification, which is updated as investment/turnover figures change rather than creating a new registration.

Do service businesses qualify, or only manufacturers?

Both โ€” Udyam registration covers manufacturing and service enterprises alike, using the same investment and turnover thresholds for classification.

What happens if I don't update my classification after growing?

Continuing to claim benefits under an outdated (lower) classification can create compliance issues if flagged during a scheme audit, so we recommend reviewing your classification periodically against current figures.

Did the classification limits change recently?

Yes โ€” effective 1 April 2025, the government revised the investment and turnover thresholds upward (investment limits roughly 2.5x, turnover limits roughly 2x the earlier figures) to let more businesses qualify for MSME benefits. Existing Udyam certificates remain valid without re-registration, though you should update your self-declared classification if the new thresholds shift your category.

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