Udyam Registration

Udyam Registration is the official government registration for Micro, Small and Medium Enterprises in India, issued by the Ministry of MSME. A 12-digit Udyam Registration Number (URN) is the proof. It replaced the earlier Udyog Aadhaar system in July 2020.

Who it applies to

Classification uses two thresholds — both investment and turnover must fall within the limit:

Any entity type qualifies — proprietorship, partnership, LLP, private limited, or one-person company. The process is self-declaration; no audited documents are required for Micro and Small enterprises.

What you get

• CGTMSE credit guarantee — collateral-free loans up to ₹5 crore for Micro and Small enterprises, with the government guaranteeing a portion of the loan to the lender
• Priority sector lending — banks must maintain MSME lending targets; registered MSMEs get better access and lower rejection rates
• Government procurement preference — 25% of all Central Government procurement is reserved for MSMEs; without Udyam registration this preference is inaccessible
• Delayed payment protection — buyers of MSME goods or services must pay within 45 days; disputes are escalated through MSME Samadhaan
• State subsidies — most state government schemes for MSMEs require a valid URN as the eligibility proof

What most founders miss

Export revenue is excluded from the turnover calculation. A startup that earns 80% of its revenue from international clients may classify as Micro or Small even with a healthy gross revenue figure — check this before assuming you have crossed a threshold.

Udyam registration is free on udyamregistration.gov.in. There is no government fee and no intermediary required. Third-party services charging ₹500–₹2,000 for this process add no value.

See also

• DPIIT Recognition — a parallel registration with a different benefit set; the two coexist
• Government grants for Indian startups and MSMEs
• State-by-state MSME subsidies