Registering your business as an MSME under Udyam Registration is one of the simplest and most valuable steps an Indian entrepreneur can take. It unlocks government benefits, easier access to credit, priority lending, subsidies, and stronger credibility with customers, vendors, and financial institutions.
The best part? Udyam registration is completely free, digital, and paperless, as enabled by the Ministry of Micro, Small and Medium Enterprises. There are no physical documents, no agents, and no approval delays.
This guide explains the step-by-step process to register an MSME (Udyam) in India, along with key points to know before applying.
What Is Udyam Registration?
Udyam Registration is the official MSME registration system introduced by the Government of India to recognise micro, small, and medium enterprises.
Once registered, your business receives:
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A Udyam Registration Number (URN)
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A digital MSME certificate, issued instantly
The system is fully integrated with PAN, GST, and Income Tax databases, ensuring faster verification and reduced errors.
Official portal: https://udyamregistration.gov.in
Who Can Register as an MSME?
The following business entities are eligible for Udyam registration:
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Proprietorships
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Partnerships
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Limited Liability Partnerships (LLPs)
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Private Limited Companies
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One Person Companies (OPCs)
Importantly, MSME classification depends on investment and turnover, not on the type of business structure.
Key Things to Know Before You Start
Before beginning the registration process, keep these points in mind:
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Aadhaar is mandatory for the proprietor or authorised signatory
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PAN is compulsory for companies, LLPs, and partnerships
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Registration is 100% free and online
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No documents are uploaded
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Certificate is generated instantly after submission
There is no registration fee and no renewal requirement.
Step-by-Step Process to Register an MSME (Udyam)
Step 1: Go to the Official Portal
Visit the Udyam Registration portal operated by the Government of India:
👉 https://udyamregistration.gov.in
Always ensure you are on the official website. No consultant or private agent is required.
Step 2: Start New Registration
On the homepage, select:
“For New Entrepreneurs who are not Registered yet as MSME”
This option is meant for first-time registrations under the Udyam framework.
Step 3: Aadhaar Verification
Enter the Aadhaar number of:
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Proprietor (for proprietorship)
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Managing partner (for partnership)
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Authorised director/signatory (for company or LLP)
An OTP will be sent to the Aadhaar-linked mobile number. Enter the OTP to proceed.
This Aadhaar-based verification ensures authenticity and prevents duplicate registrations.
Step 4: PAN Verification
Next, enter your PAN details.
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PAN verification happens automatically
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Business name and entity type are fetched from government records
For proprietorships, PAN is linked directly to the Aadhaar holder.
PAN validation is integrated with the Income Tax Department database:
👉 https://www.incometax.gov.in
Step 5: Fill Business Details
Provide basic details such as:
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Business name
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Type of organisation
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Official address
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Date of commencement
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Bank account details
These details will appear on your MSME certificate, so accuracy is essential.
Step 6: Investment & Turnover Details
Declare:
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Investment in plant & machinery or equipment
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Annual turnover
These figures are auto-verified with GST and Income Tax databases where applicable.
MSME classification is as follows (as notified by the Government of India):
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Micro Enterprise – Lowest investment and turnover
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Small Enterprise – Mid-range investment and turnover
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Medium Enterprise – Higher limits within MSME range
No balance sheets, invoices, or proof documents are required.
Step 7: Select NIC Code
Choose the appropriate NIC (National Industrial Classification) code that best describes your business activity.
You can select:
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Manufacturing activities
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Service activities
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Multiple NIC codes, if applicable
Correct NIC selection is important for scheme eligibility and sector classification.
Step 8: Self-Declaration
Confirm the self-declaration stating that:
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All information provided is accurate
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No false or misleading details have been submitted
Udyam registration operates on trust-based self-declaration, supported by backend data verification.
Step 9: Final OTP & Submit
A final OTP is sent to your registered mobile number.
Enter the OTP and submit the application.
Once submitted:
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Your Udyam Registration Number is generated
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A digital MSME certificate is issued instantly
You can download the certificate anytime from the portal.
Benefits of MSME (Udyam) Registration
Registering under Udyam provides multiple advantages, including:
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Priority sector lending from banks
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Lower interest rates on business loans
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Eligibility for government subsidies and MSME schemes
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Protection against delayed payments (under MSME Act)
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Enhanced credibility with customers and vendors
For small businesses, Udyam registration significantly improves access to finance and opportunities.
Practical Tips for Smooth Registration
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Use the same mobile number linked to Aadhaar
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Double-check PAN and bank details
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Select NIC codes carefully
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Avoid third-party agents charging fees
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Save a copy of your MSME certificate
Any updates to business details can be made later through the Udyam portal.
Final Thoughts: Register Once, Benefit Long-Term
Udyam registration is one of the simplest yet most powerful steps for Indian entrepreneurs. With a fully digital, integrated, and free process, there is no reason to delay.
By completing the registration correctly, businesses unlock financial benefits, legal protections, and long-term growth opportunities. If you are running—or planning—a business in India, registering as an MSME is a smart decision that pays off over time.
