Udyam registration
Udyam registration is the MSME registration under the Micro, Small and Medium Enterprises Development Act, 2006. Company Suggestion files it on the Udyam portal. It replaced EM-II and Udyog Aadhaar from 1 July 2020, and there is no registration fee.
What is Udyam registration?
The certificate records the enterprise and its class. A proprietorship, a partnership, a limited liability partnership, a company, or any other enterprise that fits the ceilings can register. The portal is udyamregistration.gov.in.
The certificate does not expire each year. Classification is updated when investment or turnover crosses a ceiling. A company that buys from a registered supplier and leaves the bill unpaid for more than 45 days has a separate filing, MSME-1, which the private company annual page covers.
How is an enterprise classified?
Both ceilings apply. Investment is in plant and machinery or equipment. Crossing either ceiling moves the enterprise up. These are the ceilings notified with effect from 1 April 2025.
| Class | Investment | Turnover |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
Which papers does the form need?
The portal pulls what it already holds. The applicant still identifies the enterprise.
- Aadhaar of the proprietor, or of the partner, designated partner, or authorised signatory
- PAN of the enterprise
- GSTIN, if the enterprise is registered for GST, which the portal fetches
The certificate does not change the rate of income tax, and it does not by itself approve a bank loan. It is the paper a lender or a department asks for when a scheme is limited to micro, small, or medium enterprises. The MSMED Act also requires a buyer to pay a registered supplier within the agreed period, which cannot exceed 45 days.
What are the registration steps?
Company Suggestion files the registration in four steps.
- Aadhaar of the signatory is verified on the Udyam portal.
- PAN, and GSTIN where there is one, are entered. The portal fills the linked details.
- The enterprise is classified from investment and turnover.
- The Udyam certificate is issued. It is updated when either ceiling is crossed.
Frequently asked questions
4 questions cover the rules that decide this registration.
Is Udyam the same as MSME registration?
Yes. Udyam replaced EM-II and Udyog Aadhaar from 1 July 2020. The certificate is the MSME registration under the MSMED Act, 2006.
Is there a government fee?
No. The Udyam portal does not charge a registration fee. The certificate also does not expire each year.
What moves an enterprise into the next class?
Crossing either ceiling, investment or turnover. An enterprise that stays inside both ceilings of a class keeps that class. The classification is updated when the figures change.
Does the certificate cut the tax rate?
No. The certificate does not change the income-tax rate. It is what a bank or a department asks for when an MSME scheme applies, and it supports the 45-day payment rule in the MSMED Act.