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Udyam (MSME) Registration: Eligibility and Benefits

By the BusinessKaro team · Updated November 2026

Udyam registration is the government's official recognition of micro, small and medium enterprises. It is free, online and based on Aadhaar and PAN.

Who qualifies

Enterprises are classified by investment in plant and machinery or equipment, and by annual turnover. Under the limits revised from 1 April 2025:

CategoryInvestment up toTurnover up to
Micro₹2.5 crore₹10 crore
Small₹25 crore₹100 crore
Medium₹125 crore₹500 crore

Both manufacturing and service businesses are eligible, including proprietorships, partnerships, LLPs and companies.

Key benefits

  • Easier access to bank loans under priority sector lending and credit guarantee schemes
  • Protection against delayed payments: buyers must generally pay MSMEs within 45 days
  • Preference in government tenders, including exemption from earnest money deposits in many cases
  • Eligibility for state and central subsidies and schemes
  • Concessions on certain government fees, such as trademark filing

How to register

Registration is done on the Udyam portal using the owner's Aadhaar, with PAN and GST details pulled in automatically. Our MSME / Udyam Registration service ensures your classification and activity codes are correct.

Services in this guide.

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