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Udyam Registration for MSME: Procedure, Eligibility, and Opportunities

We have a large topic today, so I’ll go over all you need to know about MSME registration, also known as Udyam registration, including the complete online registration process, the benefits of this registration, and the full MSME requirements.


It was constituted as the highest governing body of the Indian government under the MSME Act of 2006.

The MSME ministry’s major goals are to create and implement laws and regulations for small businesses. It is the governing and executive body of the Government of India that encourages and assists small-scale businesses seeking to enter the market. It also makes registering for the MSME a breeze.

Criteria for the MSME :

Earlier the classification of existing MSME was based upon the investment in the machinery or the equipment in the enterprises and investments in the service sector. so to avail of the benefits of MSME, enterprises have to manage the limit of their investment to a certain limit, which has been shown below :

Existing MSME classification 

For the microbusinesses

In the manufacturing sector, the investment range should be below Rs 25 L, and in the service sector, it should not exceed Rs 10 L.

For the Small enterprises 

 The investment range in manufacturing sectors should below Rs 5 Cr and for the service sectors, the investment should below Rs 2 Ccr.

For the  Medium enterprises 

In the manufacturing sector, investments should not exceed Rs 10 crore, while in the service sector, investments should not exceed Rs 5 crore.

 Reason for the revised criteria 

These lower limits hamper the enterprises to grow their business or expand their operations further to avail of the MSME benefits, apart from this it was the long-time demand for the MSME revision plan to get the government schemes. 

However, under the ABA (Atmanirbhar Bharat Abhiyan), the Indian government altered the requirements to include a composite of investment and yearly turnover, as well as eliminating the distinction between manufacturing and service industries under the MSME ministry.

For defining MSME status under the Indian government, the MSME ministry would henceforth simply consider investment and yearly turnover.

Revised criteria for the  MSME 

For the Micro-enterprises 

The investment annually is lower than Rs 1Cr and the annual turnover is less than Rs 5 Cr.

For the Small enterprises 

 The annual investment is less than  Rs 10 Cr and the yearly turnover is less than Rs 50 Cr.

For the medium enterprise 

 The annual investment of the enterprises is less than Rs 50 Cr and the annual turnover should be less than Rs 250 Cr.

Knowing the above criteria for the MSME, now we will learn about the Udyam registration.

 Udyam registration 

The Indian government has launched this Udyam registration or MSME registration for small businesses in India that are operating in the market without taking advantage of any MSME perks.

Many small businesses in India are involved in a variety of activities such as manufacturing goods or providing services to consumers in the Indian market, so the government has introduced MSME registration, also known as Udyam registration, for businesses that are having difficulty managing their operations under various initiatives launched by the MSME ministry.

Now we have ideas about the Udyam registration or the MSME registration. Now we will know about the process of Udyam registration, before going ahead we discuss the required documents for the Udam registration.

Required documents for the Udyam registration 

For the enterprises, the aadhar card and the PAN card (  in special cases ) are required to provide for the Udyam registration. 

As here it is to be noted that the enterprises who have this UAM registration or any registration which has been issued by the authority which comes under the MSME ministry, shall have to re-register in the  Udyam registration portal.

and UAM registered enterprises will have to migrate to udyam registration by 31/12/2021, otherwise, the old registration will be invalid and they will not be able to attain the benefits provided by the MSME.

The following paragraph explains how to register for Udyam online:

Udyam registration follows a step-by-step procedure

  • To get started, go to the Udyam registration portal and enter your Aadhar details and name as they appear on your aadhar card, as well as other information, before clicking ” Validate and Generate OTP “.
  • Your registered mobile number will receive an OTP, which you must authenticate. Your Aadhar number has been verified successfully.
  • Here you can select the type of business and enter and validate your PAN information.
  • Following the validation of the PAN, you must provide personal information such as your phone number, email address, business name, principal office address, and so on.
  • In the terms and conditions box, click “submit and get the final OTP” after filling in the information.
  • Finally, you enter the OTP you received on your registered mobile number and select “Final submit.”
  • You will be sent to a new payment gateway window where you may make a payment for the registration procedure and then click to submit.
  • After you have completed the payment, one of our team specialists will call you to begin the registration process.
  • You will receive an E-registration document on your registered email id after the final submission is received and the details are confirmed by the MSME ministry.

See the advantages of Udyam registration in the paragraph below.

Benefits of Udyam registration under the MSME :

  • registered enterprises will receive the benefits of government schemes like easy-to-take bank loans at very low rates of interest, loans without collateral, subsidies on various taxes, etc.
  • financial support is provided by the government if they participate in foreign exposure to showcase the products
  • It will qualify companies for government contracts, finance, and other opportunities.

These are the main advantages that the company has to help them with their business and the convenience of doing business.


So, in this blog, we learned about MSME and Udyam registration portal, as well as the eligibility criteria and benefits of Udyam registration. I am confident that the candidates or others will find this post helpful in resolving their issues.


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