Business setup in India
Company, LLP and firm registration.
Learn moreUdyam (MSME) Registration
Understand your MSME category under the 2025 limits and get guidance as you register yourself on the free government portal — with a clear view of the benefits you can use.
MSME limits from 1 April 2025
An enterprise is classified on both investment in plant and machinery or equipment and turnover.
| Category | Investment up to | Turnover up to |
|---|---|---|
| Micro | ₹2.5 crore | ₹10 crore |
| Small | ₹25 crore | ₹100 crore |
| Medium | ₹125 crore | ₹500 crore |
Notification S.O. 1364(E) of 21 March 2025 raised the earlier limits (investment/turnover: micro ₹1 crore/₹5 crore, small ₹10 crore/₹50 crore, medium ₹50 crore/₹250 crore). Export turnover is excluded when turnover is counted.
How Udyam registration works
- Registration is free, online and paperless on the official Udyam portal, based on self-declaration and the Aadhaar of the proprietor, managing partner, karta or authorised signatory.
- PAN is required; a GSTIN is required only where the enterprise is liable to register for GST.
- Investment and turnover figures are taken from the income tax and GST systems.
- One registration per enterprise — several activities can be added to it. It does not need renewal, but details must be kept up to date.
- Wrong declarations can attract a penalty under the MSMED Act.
The Udyam portal states that no private person or agency is authorised to carry out MSME registration. Our role is advisory — we help you assess the likely classification, check your PAN, GST and income tax data and guide you as you register in your own name. If you engage us, our fee is for advisory support only; it is not a registration or government fee.
Main benefits
- Priority sector lending from banks.
- Payment protection: buyers must pay micro and small enterprises within the agreed period, not more than 45 days (15 days without a written agreement), with interest on late payment and recourse to the MSE Facilitation Council through MSME Samadhaan.
- Amounts owed by a buyer to registered micro and small enterprises that stay unpaid beyond the section 15 time limit are deductible for the buyer only when actually paid — section 37(2)(g) of the Income-tax Act, 2025 (section 43B(h) of the 1961 Act).
- Public procurement: under the Public Procurement Policy, central ministries and PSUs are required to procure at least 25% of their annual procurement from micro and small enterprises, with free tender sets and no earnest money deposit.
- Retail and wholesale traders can register, but their benefits are limited to priority sector lending.
Frequently asked questions
Is there a fee for Udyam registration?
No. Registration on the official portal is free. Be careful with websites that look official and charge fees.
Do I need GST registration to get Udyam?
Only if your enterprise is otherwise required to register for GST. PAN is required for all enterprises.
Can a trader register on Udyam?
Yes, retail and wholesale traders can register, but the benefits available to them are limited to priority sector lending.
What happens if my turnover grows?
Your classification is updated from the income tax and GST data. An upward change generally applies from 1 April of the following year, and non-tax benefits continue for three years after an upward move. Keep the registration up to date.
Related services
Startup India registration
DPIIT recognition and tax benefits.
Learn moreGST registration
When GST registration is required.
Learn moreSources: MSMED Act, 2006 (sections 15, 16, 18 and 27); Public Procurement Policy for Micro and Small Enterprises Order, 2012, as amended in 2018; Notification S.O. 1364(E) of 21 March 2025; Notification S.O. 1055(E) of 5 March 2021; Udyam Registration portal; DC-MSME — Benefits of Udyam Registration and Office Memorandum of 2 July 2021 on traders; Public Procurement Policy FAQs (27 January 2022); Income-tax Act, 2025 (section 37); Finance Bill 2023 Memorandum.
Important: This page is general information as at 12 October 2026. It is not legal or tax advice and not a recommendation to act. Rules, forms and due dates change and depend on your facts — please confirm the current position with us or the relevant authority before acting. Any engagement is under a written scope.
Not sure of your MSME category?
Share your turnover and investment figures — we'll assess your likely category and guide you through registration.