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Corporate & Commercial

MSME / Udyam Registration

Registration of micro, small and medium enterprises under the Micro, Small and Medium Enterprises Development Act 2006 and the Udyam Registration framework.

Overview

About this area of practice

Udyam Registration is the single registration framework introduced by the Ministry of Micro, Small and Medium Enterprises in 2020, replacing the earlier Udyog Aadhaar Memorandum. Registration is available to enterprises engaged in manufacturing of goods or provision of services, classified by investment in plant and machinery (or equipment) and turnover.

Registration confers eligibility for a range of statutory benefits including, among others, priority sector lending, protection under the MSMED Act against delayed payments by buyers, and preferences under the Public Procurement Policy. Several state and central schemes are also linked to Udyam registration.

LexWiser assists eligible enterprises with classification under the prescribed criteria, preparation of supporting documents, and filing of the Udyam application on the Udyam Registration Portal.

Scope

Work typically involved

Engagements in this area generally involve some or all of the following work. The actual scope is set out in the engagement letter once the matter is understood.

01 Determining eligibility and the applicable category (micro, small or medium) based on investment in plant and machinery (or equipment) and turnover.
02 Collecting and verifying the supporting documents and information required for filing.
03 Filing the Udyam application on the Udyam Registration Portal and downloading the Udyam Registration Number and certificate.
04 Advising on attendant benefits and the requirements for availing them.
Approach

How an engagement proceeds

01

Eligibility assessment

Review of the enterprise's investment in plant and machinery (or equipment) and annual turnover to determine eligibility and applicable category.

02

Document preparation

Collection of Aadhaar of the authorised signatory, PAN and GSTIN of the enterprise (where applicable), and bank details.

03

Filing

Submission of the application on the Udyam Registration Portal with the prescribed information.

04

Certificate

Generation of the Udyam Registration Number and electronic certificate on successful submission.

Considerations

Points to consider

Classification criteria

An enterprise is classified as micro, small or medium based on both investment and turnover. Crossing either threshold pushes the enterprise into the next category.

PAN and GSTIN linkage

Udyam registration is linked to the PAN and, where applicable, the GSTIN of the enterprise. Information relating to investment and turnover is taken from these sources.

No government fee

Udyam registration is offered free of cost by the Government of India. Counsel fees relate to advisory and filing support only.

Updates and reclassification

Enterprises are required to update their information annually. The classification is recalculated based on updated investment and turnover figures.

Frequently Asked

About this matter

Is Udyam registration mandatory? +

No. Udyam registration is not mandatory. It is required, however, to avail the statutory benefits available to micro, small and medium enterprises under the MSMED Act and related schemes.

Which enterprises are eligible for Udyam registration? +

Enterprises engaged in manufacturing or provision of services, including proprietorships, partnership firms, LLPs and private limited companies, are eligible, provided they fall within the investment and turnover thresholds.

What benefits does Udyam registration confer? +

Benefits include eligibility for priority sector lending, protection under Sections 15 to 24 of the MSMED Act against delayed payments by buyers, preferences in public procurement, and access to several central and state government schemes.

Does Udyam registration replace other licences and registrations? +

No. Udyam registration is in addition to, and does not replace, any other registration or licence required for the business (such as GST, FSSAI or sector-specific approvals).

How long is the certificate valid? +

The Udyam certificate is valid in perpetuity, subject to the enterprise updating its information annually and continuing to fall within the prescribed thresholds.

Related Services

Matters often handled alongside this one

GST Registration
Registration under the Central Goods and Services Tax Act 2017.
Learn more →
Private Limited Company
Incorporation under the Companies Act 2013 via SPICe+.
Learn more →
FSSAI Licence
Food business operator licensing under the FSS Act 2006.
Learn more →

Discuss this matter with counsel

Every engagement begins with a confidential consultation. Schedule one to understand the scope, approach and fees for your specific matter.

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