Udyam registration is the government's online registration for micro, small and medium enterprises, and the certificate it produces is what your customers and auditors ask for as proof of MSME status. Apply only on the official portal, udyamregistration.gov.in, and do not pay an agent in the government's name.
Facts checked: 9 October 2026. The classification limits below come from Notification S.O. 1364(E) dated 21 March 2025, effective 1 April 2025, as reported by Taxmann and other secondary sources; the Ministry of MSME site could not be opened by our tool. The statement that registration is free, and the warning about fake sites, is reported from the official portal's homepage; check it yourself before you act. Section 43B(h) is from our own knowledge of the Income-tax Act, 1961, so read the section.
Who is micro, small or medium
Classification uses investment in plant and machinery or equipment, and turnover. Both tests apply together.
| Category | Investment up to | Turnover up to |
|---|---|---|
| Micro | ₹2.5 crore | ₹10 crore |
| Small | ₹25 crore | ₹100 crore |
| Medium | ₹125 crore | ₹500 crore |
An enterprise that crosses the ceiling on either test moves to the next higher category. It moves down only when it is below the lower ceiling on both. Reported guidance says the downgrade takes effect from 1 April of the following financial year. Investment and turnover of all units under the same PAN are added together.
What you need
Reported requirements: the Aadhaar of the proprietor, managing partner, karta or authorised signatory, the business PAN, and GSTIN where the entity is registered under GST. The portal fetches tax details from the PAN and GST systems, so scanned documents are generally not uploaded. Rules differ by entity type, so use the checklist on the portal.
Getting, downloading and verifying the certificate
- Open the portal by typing the address into your browser.
- Fill the form, verify Aadhaar with the OTP, and submit.
- The Udyam Registration Number and the certificate are generated online.
- To download or check one later, use the Print/Verify option on the portal with the URN.
Anyone who asks you for a Udyam certificate can verify it the same way, using the URN.
Beware look-alike paid sites
Many private websites copy the portal's look and charge a fee. The official portal is reported to state that registration is free. If a site asks for money for a basic registration, leave. Registration help from a professional is fine, but any fee should be for their service and agreed in advance, not presented as a government charge.
Why this matters for audit and tax
Under section 43B(h) of the Income-tax Act, 1961 (AY 2024-25 onwards), an amount payable to a micro or small enterprise is deductible only when paid, within the time allowed: the agreed period up to 45 days where there is a written agreement, or 15 days where there is none. Medium enterprises are not covered. Unpaid amounts beyond that are disallowed for the year and become deductible when paid.
So a client needs an up-to-date list of suppliers with their Udyam status. See the 43B(h) audit resource and the Form 3CD clause 22 MSME interest working paper.
Illustrative scenario
A trader buys goods worth ₹8,00,000 from a micro supplier on 1 February 2026 with no written agreement. Payment is due by 16 February. The trader pays on 10 May 2026, after year end on 31 March. The ₹8,00,000 is not deductible for FY 2025-26 and is claimed in FY 2026-27 when paid. These figures are invented.
Frequently asked questions
Is the Udyam certificate the same as an MSME certificate?
In everyday use, yes. Udyam replaced the older Udyog Aadhaar memorandum.
Does a medium enterprise gain from 43B(h)?
No. The payment rule protects only micro and small suppliers.
Do I need to renew the certificate?
Sources report no renewal fee. Update your details if turnover, investment or activity changes.
Is Udyam registration mandatory?
Check the portal and the Ministry of MSME for who must register. Even where it is optional for you, your buyers need your status to apply 43B(h), so most small suppliers register.
See also the audit glossary and the section 44AB applicability checker.
Statutory facts on this page are checked against their sources, and the page says where it relied on secondary reporting. How we verify · Report an error