Udyam (MSME) registration
Free online Udyam registration for micro, small and medium enterprises, the 2025 size limits, and the payment protections that come with it.
Tax Colony is an independent educational site, not a tax adviser or filing service. Verify with official sources or a professional before acting.
Size limits from 1 April 2025
An enterprise must meet both the investment limit and the turnover limit for its class.
| Class | Investment up to | Turnover up to |
|---|---|---|
| Micro | ₹2.5 crore | ₹10 crore |
| Small | ₹25 crore | ₹100 crore |
| Medium | ₹125 crore | ₹500 crore |
How to register
Registration is online, paperless and free, and works on self-declaration. You need the Aadhaar of the proprietor, managing partner, karta or authorised signatory, plus PAN and GSTIN. You don’t upload any documents. You get a permanent Udyam Registration Number and an e-certificate.
Informal micro enterprises that are exempt from GST can register through the Udyam Assist Platform instead, via designated agencies such as banks. Its certificate counts the same as a Udyam certificate for priority-sector lending.
Getting paid on time
- Buyers’ tax deduction: a buyer can claim a deduction for money owed to a micro or small enterprise only once it is paid within the MSMED Act time limit. That is 15 days without a written agreement, and up to 45 days with one. This is section 43B(h).
- Delayed payments: micro and small suppliers (not traders) can file a claim on MSME Samadhaan. Interest runs at three times the RBI bank rate, compounded monthly.
Sources
- Udyam Registration portal
- RBI FAQs on micro enterprises and Udyam Assist
- Income Tax Department: section 43B
- MSME Samadhaan FAQ
Last verified: 4 Nov 2026