# Udyam registration (MSME registration on the Udyam portal)

> Udyam registration is the free, online registration that identifies a business as a micro, small or medium enterprise (MSME) in India. It gives a permanent Udyam number and certificate, and it is what entitles a micro or small supplier to be paid within 45 days.

## Why it matters to your business

A Udyam number changes how quickly you must be paid, and how quickly you must pay. A buyer who
owes money to a registered micro or small enterprise has to pay within the agreed period, which
cannot be more than 45 days, or within 15 days if nothing was agreed. A buyer who pays late owes
compound interest and loses the income tax deduction for that purchase until the year the payment
is actually made.

So if you are a micro or small manufacturer or service provider, your Udyam number belongs on
your invoices. And if you buy from such suppliers, you need to know which of your vendors are
registered and when each bill falls due.

## How it works

As of October 2026:

- You register once on udyamregistration.gov.in with Aadhaar and PAN. Investment and turnover are
  taken from your income tax and GST returns.
- You receive a Udyam Registration Number and a certificate with a QR code.
- Under the MSMED Act, buyers must pay micro and small suppliers within 45 days at most.
- Under the Income-tax Act, 2025, a payment to a micro or small enterprise that is made later than
  that is allowed as an expense only in the year it is paid. Before 1 April 2026 the same rule was
  section 43B(h) of the 1961 Act.
- A delayed payment can be taken to the MSME Samadhaan portal and the Facilitation Council.

## What to do

- **If you are an MSME:** print your Udyam number on your invoices and state your credit period.
- **If you buy from MSMEs:** ask each vendor for their Udyam certificate, note whether they are
  micro, small or medium, and watch your
  [payables ageing](/glossary/ageing-report) so that no such bill crosses 45 days.

See the guide to the [45-day payment rule](/blog/msme-45-day-payment-rule).

## Questions

### Is Udyam registration free?

Yes. It is done only on the government's Udyam Registration portal, with your Aadhaar and PAN, and there is no fee. No certificate from an agent is needed.

### What are the limits for micro, small and medium enterprises?

From 1 April 2025: micro is investment in plant and machinery up to ₹2.5 crore and turnover up to ₹10 crore; small is up to ₹25 crore and ₹100 crore; medium is up to ₹125 crore and ₹500 crore. A business must be within both limits of a class.

### Can a trader register on Udyam?

Yes. Retail and wholesale traders can register, but for them the benefit is limited to priority sector lending. The protection against delayed payments applies to manufacturers and service providers.

### Does the Udyam certificate need renewal?

No. The Udyam number is permanent. Your class is updated from your income tax and GST returns each year.

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Source: https://www.easedesk.com/glossary/udyam-registration · Updated 2026-10-02 · EaseDesk