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Udhyam / MSME Registration

Service Name

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: Enterprises engaged in the manufacture or production, processing or preservation of goods 

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Instabizfilings Price

₹ 847 excl. GST

₹ 999 incl. GST

Complete Date

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Scope of Work:

  • 1. Preparation of Udhyam (MSME Registration Application)


    2. Submission of Application


    3. Obtaining of Udhyam Registration


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What is Udhyam Registration

The micro, small, and medium-sized enterprises (MSMEs) contribute heavily to India's Gross Domestic Product (GDP). In fact, over 110 million people are employed by MSMEs. Yet, these enterprises face several challenges and issues while growing or expanding their footprints.


To identify and help these MSMEs, the Indian government took the initiative on May 13, 2020 to announce a new metric for classifying MSMEs in India. As per this classification metric, all MSMEs in India would be known as ‘Udyam’ and will have to go through a registration process known as ‘Udyam Registration’. The Union Cabinet approved this classification, and the Udyam registration process became mandatory for all MSMEs from July 1, 2020


Advantages of MSME Registration

As an MSME business owner, there are several benefits of registering your business under the Udyam classification. These include:


• It will help you in getting government tender

• You can get business loans from banks and non-banking financial corporations (NBFCs) at lower interest rates.

• You can avail of various tax rebates available exclusively for Udyam.

• It will become easy for you to get government approvals, licenses, and registrations for your business.

• You will get tariff subsidies and capital tax subsidies.

• You can avail of rebates and concessions for setting up your industry.


Criteria for Registration

All entities classified as Micro, Small and Medium enterprises as per the MSME classification are eligible to apply for MSME registration. An individual cannot apply for MSME registration. A proprietorship, partnership firm, company, trust or society with an investment below Rs.50 crore and annual turnover below Rs.250 crore are eligible for MSME registration.


Investment Annual Turnover Classification
< Rs. 1 Crore Upto Rs. 5 Crores Micro Enterprises
< Rs. 10 Crore Upto Rs. 50 Crores Small Enterprises
< Rs. 50 Crore Upto Rs. 250 Crores Medium Enterprises


Required Document

1. Aadhar Card (Applicant)

2. PAN of Proprietor/Firm/LLP/Company

3. GST Certificate


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It is not mandatory to have a GST number for registering your MSME.

Once the application form is submitted, it can take 2-3 days for the approval and registration to complete.

The Turnover limit of MSME is Rs. 250 Crore.

Yes, details such as PAN card, Aadhaar card and latest bank account details of business or proprietorship are mandatory in udyam registration.

Udyam registration is the new process for registering MSME launched by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. The government of India initiated Udyam registration as a substitute to the earlier method of Udyog Aadhar to make it easier for MSMEs to register with the government portal.

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