Udyam registration is one of the easiest, highest-leverage things a newly incorporated business can do — it's free, mostly instant, and unlocks real protections that most founders don't realise exist until they need them.
Are you eligible?
Eligibility is based on investment in plant/machinery or equipment, and annual turnover, classified into three tiers:
| Category | Investment limit | Turnover limit |
|---|---|---|
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
Most newly incorporated companies and startups fall comfortably in the Micro category in their first years of operation.
Why it's worth doing
- Delayed payment protection: Buyers of goods/services from a Udyam-registered MSME must pay within 45 days, or interest accrues automatically under the MSME Development Act — a real enforcement mechanism for cash-flow-strapped small businesses.
- Priority-sector lending: Banks are required to direct a portion of lending to MSMEs, often at more favourable terms than standard commercial credit.
- Government tender eligibility: Many government tenders reserve a portion specifically for MSME bidders, and some waive tender fees or earnest money deposits for registered MSMEs.
- Subsidy and scheme access: Various state and central schemes (subsidised credit, technology upgrade support) are gated behind Udyam registration.
How to register
- Go to the official Udyam Registration portal.
- Enter the Aadhaar number of the proprietor/managing partner/authorised director.
- Enter the business PAN — turnover and investment data is auto-fetched where linked to GST/ITR records.
- Verify and submit — you receive a Udyam Registration Certificate immediately.
We recommend completing Udyam registration as part of your post-incorporation checklist, alongside opening your current account and filing INC-20A — see our full incorporation guide for the complete sequence.