Udyam Registration

Quick answer: Virtual Auditor's professional fee for Udyam registration starts from ₹1,500 + 18% GST; government fees and other charges are extra.

Udyam Registration is the updated MSME registration system replacing Udyog Aadhaar. Self-declaration based, linked to PAN and Aadhaar. Classification: Micro (investment ≤₹1Cr, turnover ≤₹5Cr), Small (≤₹10Cr, ≤₹50Cr), Medium (≤₹50Cr, ≤₹250Cr). Benefits include priority lending, government tender preferences, and delayed payment protection. Free registration at udyamregistration.gov.in. Quick Answer: Udyam Registration — Udyam Registration online by CA firm. Expert filing and compliance support. Virtual Auditor.

What is Udyam Registration?

Udyam vs Old MSME (EM-II)

Udyam Registration — Complete Classification Guide

Udyam Registration replaced Udyog Aadhaar Memorandum (UAM) effective July 1, 2020. It is the only valid MSME registration in India — all old UAM registrations were required to migrate to Udyam by March 2022.

MSME Classification (Composite Criteria)

Both criteria must be satisfied. Investment in plant and machinery/equipment (excluding land, building, and furniture). Turnover excludes exports. Data auto-verified from ITR and GSTIN.

Key Benefits of Udyam Registration

Credit access: Priority sector lending from banks. Collateral-free loans up to ₹1 crore under CGTMSE. Interest subvention of 2% on incremental credit. 1% interest rate exemption on overdraft facilities.

Protection: Delayed payment protection — buyers must pay within 45 days under MSMED Act Section 15. Interest at 3x bank rate for delays. Can file complaint with MSME Facilitation Council.

Government support: Preference in government procurement (25% mandatory from MSMEs). 358+ government tenders reserved exclusively for MSEs. Exemption from certain environmental clearances.

Need Help With This?

30-minute consultation with CA V. Viswanathan, FCA, ACS, CFE, IBBI RV. No obligation.

Step-by-Step Process

Step 1

Visit udyamregistration.gov.in

Step 2

Enter Aadhaar and validate with OTP

Step 3

Fill business details, PAN, GSTIN

Step 4

Self-declare investment and turnover

Step 5

Submit and receive Udyam Registration Number

Step 6

Print certificate (lifetime validity)

What You Will Receive

Upon completion, you will receive: Udyam Registration certificate with unique Udyam Registration Number, dynamic QR code for verification, updated classification (Micro/Small/Medium) based on investment and turnover, advisory on applicable MSME benefits and schemes, GeM (Government e-Marketplace) registration guidance, and reminder for annual update of investment and turnover details on the Udyam portal.

Latest Regulatory Updates (FY 2026-27)

This page reflects the Income-tax Act, 2025 (in force from 1 April 2026), the Finance Act, 2026, and the notifications and circulars of CBDT, CBIC, MCA, SEBI and RBI reviewed in November 2026. Virtual Auditor continuously monitors regulatory developments to ensure all advice and filings are current and compliant with the latest provisions.

Who Needs Udyam Registration?

Any manufacturing or service enterprise within the MSME investment and turnover limits can register on the Udyam portal using the proprietor's or signatory's Aadhaar and PAN. It is needed by (a) businesses seeking priority-sector lending and CGTMSE collateral-free loans, (b) suppliers who want the 45-day payment protection and interest under sections 15 and 16 of the MSMED Act, 2006, (c) bidders for government tenders with MSME preference, (d) enterprises claiming state or central subsidies, and (e) businesses whose customers or banks require an Udyam number for onboarding.

Penalties for Non-Compliance

Udyam registration is voluntary, so there is no penalty for not registering; the cost is the loss of the benefits that depend on it, such as the 45-day payment protection and interest under sections 15 and 16 of the MSMED Act, 2006, priority-sector and CGTMSE credit, tender preference and subsidies. Buyers who delay payments to registered MSMEs beyond 45 days lose the tax deduction until paid (section 43B(h), Income-tax Act, 1961). Misrepresentation to obtain registration is punishable under section 27 of the MSMED Act.

Proactive compliance is always cheaper than penalty. Contact Virtual Auditor for a compliance health check to identify and address any gaps before they become liabilities.