Udyam (MSME) registration: what it is and how to apply

What it is

Udyam registration identifies your business as a micro, small or medium enterprise (MSME) under the government's classification, which is based on your investment in plant and machinery or equipment and your annual turnover. After registering you get a Udyam Registration Number and an e-certificate.

Why register

Registered MSMEs can access a range of government schemes and support. Commonly cited benefits include:

• Access to schemes for collateral-free and priority-sector lending.
• Protection against delayed payments from buyers under the MSME rules.
• Preference in some government purchases and tenders.
• Eligibility for various subsidies and support schemes.

Exact benefits change over time and depend on the scheme, so check current details on the official portal or with your CA.

How to apply

1. Go to the official portal, udyamregistration.gov.in. Registration there is free; be careful of look-alike websites that charge a fee.
2. Keep the owner's (or authorised person's) Aadhaar number, and the PAN of the business, ready.
3. Enter your Aadhaar and verify with the OTP sent to the linked mobile number.
4. Enter PAN and business details: name, type of organisation, address, bank details, activity and number of employees.
5. Submit. Investment and turnover details are generally picked up from government records linked to your PAN and GST.
6. Download your Udyam certificate once it is issued.

After registering

Update your details on the portal when your business changes. Mention "Udyam registered" on your website and documents if you like; it can reassure business customers. Your Indiexis page can list it among your highlights.

This guide is general information, not legal or tax advice. For your specific situation, speak to a chartered accountant.