E17

Engagement

Udyam (MSME) registration in Bengaluru

Last reviewed 27 October 2026

MSME classification, the free Udyam self-declaration, updates as you grow, and the 45-day payment rule.

In short

Udyam registration is the Government of India's free, online, self-declared registration for micro, small and medium enterprises. It gives a permanent Udyam Registration Number, and investment and turnover figures are taken from the Income Tax and GST systems. The limits since 1 April 2025:

  • micro: investment up to ₹2.5 crore and turnover up to ₹10 crore;
  • small: up to ₹25 crore and ₹100 crore;
  • medium: up to ₹125 crore and ₹500 crore.

MSME limits from 1 April 2025

Ministry of MSME notification S.O. 1364(E) dated 21 March 2025:

MicroInvestment in plant and machinery or equipment: Up to ₹2.5 croreAnnual turnover: Up to ₹10 crore
SmallInvestment in plant and machinery or equipment: Up to ₹25 croreAnnual turnover: Up to ₹100 crore
MediumInvestment in plant and machinery or equipment: Up to ₹125 croreAnnual turnover: Up to ₹500 crore

Both tests apply together. An enterprise that crosses either limit moves to the next category.

Older limits. From 1 July 2020 to 31 March 2025 the limits were ₹1 crore and ₹5 crore (micro), ₹10 crore and ₹50 crore (small), and ₹50 crore and ₹250 crore (medium), so older guides show lower figures.

Who can register

Any enterprise in manufacturing or services that falls within the limits: a proprietorship, partnership firm, HUF, company, LLP, cooperative society, society or trust. One enterprise holds one Udyam registration, and several manufacturing or service activities can be added to it.

What is needed

No documents are uploaded; the registration is a self-declaration.

ProprietorshipAadhaar of: The proprietorAlso needed: PAN; GSTIN where GST registration applies
Partnership firmAadhaar of: The managing partnerAlso needed: The firm's PAN; GSTIN where applicable
HUFAadhaar of: The kartaAlso needed: PAN; GSTIN where applicable
Company, LLP, cooperative society, society, trustAadhaar of: The authorised signatoryAlso needed: The entity's PAN; GSTIN where applicable

PAN and GSTIN have been required since 1 April 2021 (S.O. 1055(E), 5 March 2021). Investment and turnover are then taken from the Income Tax and GST records linked to the PAN.

How to register

  1. 1.Go to the official portal, udyamregistration.gov.in. It is the only authorised site; private websites charging a fee are not part of the government process.
  2. 2.Choose registration for new entrepreneurs, and verify the Aadhaar of the proprietor, managing partner, karta or authorised signatory by OTP.
  3. 3.Enter the PAN, which is validated against Income Tax records, and the GSTIN.
  4. 4.Fill in the enterprise details: name, units and locations, bank account, activity (NIC codes), employees, and investment and turnover where not pre-filled.
  5. 5.Submit with the self-declaration. The Udyam Registration Number is issued, and the certificate, with a dynamic QR code, can be downloaded. It never needs renewal.

Fee: none. The portal says no costs or fees are to be paid to anyone.

How we help. The registration is the enterprise's own self-declaration, made on the government portal. We check the classification against the books, prepare the details and NIC codes, review the entry before you submit, and keep the registration updated as the business grows. For companies, we also check suppliers' Udyam status for the 45-day payment rule and MSME Form I.

What Udyam gives you

The 45-day payment rule. A buyer must pay a micro or small enterprise on the agreed date, and never later than 45 days from acceptance or deemed acceptance of the goods or services (section 15, MSMED Act, 2006). A late payment carries compound interest at three times the bank rate notified by the Reserve Bank of India (section 16). A supplier's category is shown by its Udyam registration, so registering is how a micro or small business brings itself within this protection.

Recovering delayed payments. A micro or small supplier can refer a dispute over a delayed payment to the Micro and Small Enterprises Facilitation Council (section 18).

For companies buying from MSMEs. A company that owes a micro or small supplier for more than 45 days files MSME Form I every half-year: by 31 October for April–September and by 30 April for October–March (section 405, Companies Act, 2013; S.O. 2751(E), 15 July 2024). Medium enterprises are outside the return.

Other access that usually asks for Udyam: priority sector lending from banks, the credit guarantee schemes for collateral-free loans, preference under the Public Procurement Policy for Micro and Small Enterprises, and state schemes. Each has its own conditions.

Updating and reclassification

  • The registration is permanent, but the details should be kept current: new units, activities, bank account or authorised signatory.
  • Investment and turnover flow in from Income Tax and GST records, so the category can change as the business grows.
  • An enterprise that moves to a lower category keeps its current category until the end of the financial year, and gets the new status from 1 April of the next year (S.O. 2119(E), para 8(6), as referred to in the Ministry's circular of 24 October 2025).
  • Misstating self-declared facts can attract a penalty under section 27 of the MSMED Act.

Documents & E-Forms

  • Udyam
  • S.O. 1364(E)
  • MSMED Sec. 15
  • MSME Form I

When to Engage

At start-up, before the first invoices go out, and each year once the ITR and GST returns are filed, so the classification is checked against the latest figures.

Typical turnaround: Scoped in the engagement letter.

Frequently Asked

About this engagement

Yes. It is done only on udyamregistration.gov.in, and the portal says no fee is to be paid to anyone.

Yes. The authorised signatory's Aadhaar is used with the entity's PAN and GSTIN.

None. The registration is a self-declaration; investment and turnover are taken from Income Tax and GST records.

Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore. Small: ₹25 crore and ₹100 crore. Medium: ₹125 crore and ₹500 crore. These apply from 1 April 2025.

No. The Udyam Registration Number is permanent; only the details are updated.

No. One enterprise holds one registration, and its activities and units are added to it.

A buyer must pay a micro or small enterprise within the agreed date and no later than 45 days, with interest at three times the bank rate on delay (MSMED Act, sections 15 and 16).
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