The Ministry of MSME (Micro, Small, and Medium Enterprises) has restructured MSME registration by introducing the Udyam Registration system. Udyam Registration is the updated and simplified version of MSME registration, with a unique 12-digit number called Udyam Registration Number (UAN). Essentially, Udyam Registration is the same as MSME registration but with a simpler, more streamlined process.
MSME Registration was established under the MSME Development Act of 2006 to promote and support the growth of Micro, Small, and Medium Enterprises in India. The registration aims to empower businesses by providing access to various government schemes and benefits.
Udyam Registration is an updated version of MSME registration introduced to simplify the process and make it more efficient. The registration provides a unique identification number, the Udyam Registration Number (UAN), for businesses in the micro, small, and medium sectors. Udyam Registration replaces the earlier Udyam Aadhar registration system, ensuring easier access to government support for MSMEs.
MSMEs are classified based on the investment in plant and machinery/equipment and annual turnover. The classification was revised in 2025 to include both investment limits and annual turnover:
Enterprise Type | Investment in Plant & Machinery/Equipment | Annual Turnover |
Micro Enterprise | < Rs. 2.5 Crore | < Rs. 10 Crore |
Small Enterprise | < Rs. 25 Crore | < Rs. 100 Crore |
Medium Enterprise | < Rs. 125 Crore | < Rs. 500 Crore |
The following documents are required for MSME/Udyam Registration:
Udyam Registration is an updated version of MSME registration with a simplified process and a unique Udyam Registration Number (UAN). Both are essentially the same but with easier online access.
No, MSME registration is voluntary, but it offers several benefits, such as access to government schemes, financial assistance, and tax rebates.
Udyam Registration is valid as long as the enterprise meets the criteria for MSME classification. The registration can be updated or renewed based on changes in the business.
Yes, Udyam Registration is completely online and does not require physical documentation submission.
The process is quick and can be completed within a few hours to a day, provided all details are accurately submitted.
Yes, businesses can upgrade their MSME classification by updating the Udyam registration details as their investment and turnover exceed the specified limits.
Businesses that do not register under MSME miss out on various government benefits and financial assistance options available to MSMEs.