Udyam

Udyam is the national registration portal of India for micro, small, and medium enterprises (MSMEs). It was introduced by the Government of India in 2020 to replace the previous Udyog Aadhaar Memorandum (UAM) and is administered by the Ministry of Micro, Small and Medium Enterprises. The online process is accessed through the Udyam Registration Portal (udyamregistration.gov.in), and successful applicants receive a unique Udyam Registration Number (URN) that acts as the enterprise’s certificate of registration.

Purpose and scope

Udyam Registration provides formal recognition to MSMEs and enables eligibility for various government schemes, subsidies, procurement preferences, and easier access to credit. The process is self-declaration-based and free of charge. For individuals, Aadhaar is used to link data; for other entities, identifiers such as PAN and GSTIN may be used as part of the registration.

Classification and thresholds

Enterprises are categorized as micro, small, or medium based on investment in plant and machinery (for manufacturing) or equipment (for services) and annual turnover. Following the 2021 amendments, the thresholds are:

- Micro: investment up to 1 crore and turnover up to 5 crore

- Small: investment up to 10 crore and turnover up to 50 crore

- Medium: investment up to 50 crore and turnover up to 250 crore

These limits apply to both manufacturing and service sectors. An enterprise may be reclassified if its investment or turnover crosses the thresholds, and the URN remains the single registration identifier.

Validity and updates

Udyam registration is intended to be valid for the lifetime of the enterprise, subject to accurate information and compliance. Enterprises can update their data on the portal to reflect changes in investment, turnover, or other details, which may affect classification and access to benefits.

Significance

Udyam standardizes MSME registration, streamlines verification, and broadens access to government programs, credit facilities, and public procurement, contributing to easier compliance and recognition for Indian small and medium-sized enterprises.