Setu.Technology
GlossaryGST & Tax

Udyam Registration

Also called: Udyam, Udyam Registration Number

What is Udyam Registration?

Udyam Registration is the Government of India's online registration for micro, small and medium enterprises, replacing the earlier Udyog Aadhaar system. It issues a Udyam Registration Number that records a business's MSME classification.

Why Udyam Registration matters commercially

Registration is not just administrative. Statutory protection on delayed payments — including the 15/45-day deadline and the interest entitlement under the MSMED Act — depends on the supplier being registered. An unregistered supplier has the same invoice and none of the protection.

Classification limits

Thresholds were revised with effect from 1 April 2025, and both conditions must be met: micro is investment up to ₹2.5 crore and turnover up to ₹10 crore; small is investment up to ₹25 crore and turnover up to ₹100 crore. Medium enterprises sit outside the delayed-payment rule.

What to do about it

If you sell to larger businesses, put your Udyam number on every invoice. If you buy, collect and refresh your suppliers' Udyam details annually — classifications recorded before April 2025 may now be wrong.

Frequently asked questions

It is not mandatory to operate, but without it you cannot claim MSME benefits, including the statutory protection on delayed payments.

Related terms