Easy MSME Registration with TaxCaller

MSME stands for micro, small and medium enterprises. The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) lets these businesses file a memorandum with the government. Today that filing is called Udyam registration.

The Ministry of MSME set up the present system through Notification S.O. 2119(E) dated 26 June 2020. The Udyam portal went live on 1 July 2020. It replaced every older form of MSME registration.

Every registered enterprise gets a number in the format UDYAM-XX-00-0000000. The two letters show the state. The next two digits show the district. The last seven digits are your serial number.

Udyam registration does not replace GST, a shop licence or a company registration. It only records your size category for MSME benefits. If you also need a GSTIN, see our GST registration page.

Your category depends on two numbers: investment in plant and machinery or equipment, and annual turnover. The Ministry raised both limits through Notification S.O. 1364(E) dated 21 March 2025. The new limits apply from 1 April 2025, as the Ministry confirmed in its circular dated 24 October 2025.

The same limits apply to manufacturing and service businesses. The test is composite. You must stay within both limits of a category. If you cross either one, you move to the next category.

Example: A unit has machinery worth ₹2 crore and turnover of ₹12 crore. Investment fits micro, but turnover crosses ₹10 crore. So it is a small enterprise.

How investment and turnover are counted

• Investment is taken from your income tax return for the previous years.
• Land and building, and furniture and fittings, are not counted.
• Spending on pollution control, research and development and industrial safety devices is left out.
• A new business without an ITR can declare investment from purchase invoices, without GST, until its first ITR is filed.
• Turnover is linked to your PAN and GSTIN records.
• Export turnover is not counted. So exporters often stay in a lower category.

Moving up or down a category

If your figures grow and you move up, Notification S.O. 4926(E) dated 18 October 2022 lets you keep the non-tax benefits of your old category for three years. If your figures fall, paragraph 8(6) of S.O. 2119(E) keeps you in the present category until the year ends. The lower category applies from 1 April of the next financial year.

Any business that fits the limits above can apply. The legal form of the business does not matter. What changes is whose Aadhaar is used.

Is it mandatory?

No. After the MSMED (Amendment) Act, 2026, filing on the registration platform is free and voluntary for all MSMEs. But you cannot claim most MSME benefits without it. In practice you need it when:

• a bank asks for it before a business loan or overdraft;
• a large buyer asks for your MSME status before releasing payments;
• you bid in a government tender;
• you want to file a delayed payment case;
• you apply under a central or state MSME scheme or subsidy;
• you join a TReDS platform to sell your invoices.

Traders, freelancers and new businesses

Retail and wholesale traders can register since 2 July 2021. The RBI notification on this change says their benefit is limited to priority sector lending. Traders do not get the 45-day payment protection.

Freelancers and home-based service providers can register as service enterprises. A business that has just started can also apply. It declares investment on a self-declaration basis until its first income tax return.

The Udyam portal has separate doors for different cases. Choosing the wrong one is a common cause of duplicate or failed applications.

Udyam Assist Platform for informal micro units

The Ministry launched the Udyam Assist Platform on 11 January 2023. It brings very small, informal businesses into the formal system. Think of a street vendor, a home tailor or a small repair shop without GST.

• You do not file it yourself. A Designated Agency files it for you.
• Designated Agencies include banks, NBFCs, microfinance institutions and some government departments. SIDBI developed the platform.
• The UAP certificate is treated on par with a Udyam certificate for priority sector lending.
• There is no government fee for UAP either.

If you plan to bid for tenders, claim delayed payment interest or apply for schemes, a full Udyam registration is the better route. Our expert will tell you which one fits on the first call.

The certificate itself gives no cash. Its value is that it opens the door to benefits under many laws and schemes. Here are the main ones.

More about procurement and loans

• Under the Public Procurement Policy for MSEs Order, 2012, 4% of purchases should come from SC/ST owned units and 3% from women owned units.
• Budget 2025-26 also announced a credit card of up to ₹5 lakh for micro enterprises registered on Udyam.
• Many state governments ask for the Udyam number before giving capital subsidy, power tariff relief or stamp duty refund. The terms differ by state.

If you want a trademark at the lower fee, our trademark registration team uses your Udyam certificate as proof.

Late payment is the biggest pain for small suppliers. Chapter V of the MSMED Act gives registered micro and small suppliers strong rights. You can read the Act on India Code.

• Section 15: The buyer must pay on the date agreed in writing. The agreed period cannot be more than 45 days from acceptance of goods or services. If there is no written agreement, payment is due within 15 days of acceptance.
• Section 16: If the buyer pays late, it owes compound interest with monthly rests. The rate is three times the bank rate notified by the RBI.
• Section 17: The buyer must pay the principal and the interest.
• Section 18: Either party can refer the dispute to the Micro and Small Enterprises Facilitation Council (MSEFC) of the state.
• Section 19: A buyer who wants to challenge the award must first deposit 75% of the amount.
• Section 22: Buyers whose accounts are audited must show unpaid dues to MSE suppliers in their annual accounts.
• Section 23: The buyer cannot claim this interest as a deduction in its income tax computation.

Who is covered and who is not

These rights belong to micro and small suppliers only. Medium enterprises are not covered. Traders registered for priority sector lending are also not covered. The buyer can be of any size, including a medium or large company.

You file a delayed payment case online on the MSME Samadhaan portal. Your Udyam number is needed to file it. Keep invoices, delivery proof and the buyer's acceptance ready.

Companies that owe money to MSE suppliers for more than 45 days also file Form MSME-1 with the MCA every half year, under Section 405 of the Companies Act, 2013.

The income tax law adds pressure on buyers to pay small suppliers on time. This is why many buyers now ask vendors for a copy of the Udyam certificate.

So if a buyer delays payment past 45 days at the year end, it loses the deduction for that year. Paying before filing the return does not save it. The deduction moves to the year of payment.

The rule does not apply to dues owed to medium enterprises or to traders. That is why your category on the certificate matters to your buyers.

As a supplier, send your Udyam certificate to every regular buyer. Mention your Udyam number and category on your invoices. As a buyer, track MSE dues in your books every month. Our accounting and bookkeeping team can set up this tracking, and our income tax filing team handles the year-end tax effect.

The government portal asks for no uploads. You only type in details, and the portal checks them with Aadhaar, PAN and GST records. Still, keep these ready so the form goes through in one sitting.

A full plain list is also given in the documents box on this page.

We work only on the official portal, udyamregistration.gov.in. You stay on a phone or video call while we fill the form, so you see every entry. Here is how it runs.

1. Free first call: Our expert asks about your business, checks if you already have a UAM or Udyam number and confirms the fee.
2. Category check: We look at your last ITR and GST data to see whether you will show as micro, small or medium.
3. Activity codes: We choose the right NIC codes for what you actually do. One registration can carry several activities.
4. Aadhaar step: You receive the OTP on your Aadhaar-linked mobile and enter or share it during the live session.
5. PAN and GST step: The portal checks your PAN and pulls ITR and GST data. We fix name mismatches before moving on.
6. Enterprise details: We add units, office address, bank account, employees, social category and dates.
7. Review: We read the full draft back to you. Nothing is submitted until you agree.
8. Final submission: A final OTP submits the form and the portal shows your Udyam Registration Number.
9. Certificate check: Once the e-certificate is issued, we download it and check every line with you.
10. Follow-up: We note your registration in our reminders and tell you when an update is due.

We never ask for your income tax or GST portal passwords for this work. Only the Aadhaar OTP is needed.

Udyam registration is one of the fastest registrations in India because no officer approves it. Time mostly depends on how quickly your details are ready.

If your Aadhaar is not linked to a working mobile, update it at an Aadhaar centre first. That step can take several days and is the most common cause of delay.

The Udyam certificate is an e-certificate. No paper copy is posted to you. It has a dynamic QR code, so anyone can scan it and see the live record.

What the certificate shows

• Udyam Registration Number and date of registration
• Name of the enterprise and type of organisation
• Category for each financial year (micro, small or medium)
• Major activity: manufacturing, services or trading
• Social category of the owner
• Office address and plant or unit locations
• Date of incorporation and date of starting business
• NIC codes of all activities
• District Industries Centre (DIC) and MSME office for your area

Print, reprint and verify

• Print certificate: Use the print option on the portal with your Udyam number and the registered mobile or email. An OTP is sent.
• Verify a number: Use the verify option on the portal to check if a supplier's Udyam number is real.
• Forgot your number: The portal lets you recover it with your registered mobile or email.

The registration is permanent. There is no renewal and no expiry date. But the category line can change each year as your ITR and GST figures change.

The government fee for Udyam registration is nil. The official portal clearly states that registration is free and no fee is payable to anyone. The same is true for UAM migration and the Udyam Assist Platform.

TaxCaller's fee is for expert help, not for the registration itself. Our fee is ₹599 + GST for Udyam registration, or ₹1,299 + GST with GST registration. Government fees, wherever any service needs them, are paid separately at actual. For Udyam, that amount is zero.

Be careful with any website that asks for a "government fee" or "processing charge" for Udyam. That money does not go to the government.

Udyam works on trust, so the law punishes wrong declarations. The rules changed on 15 October 2026.

Other risks

• Suspension: Under S.O. 2119(E), failing to update your information within the time set on the portal can lead to suspension of your status.
• Cancellation after enquiry: If a complaint is made, the General Manager of the District Industries Centre can verify your details. The state can then correct them or recommend cancellation to the Ministry.
• Loss of benefits: A wrong category can lead to recovery of subsidy or loss of tender benefits.
• Form MSME-1: Companies that do not file this half-yearly return face penalties under Section 405(4) of the Companies Act, 2013.

Most Udyam problems are small errors that cause big trouble later. These are the ones we see most.

• Wrong person's Aadhaar: A company files with a director's Aadhaar as if it were a proprietorship.
• Wrong organisation type: Choosing proprietorship for a partnership firm creates a record under the wrong PAN.
• Name mismatch: The name in Aadhaar and PAN differ, so PAN validation fails.
• Mobile not linked: The Aadhaar has no working mobile number, so no OTP arrives.
• Duplicate registration: A second Udyam is filed for the same PAN instead of adding a unit to the first one.
• Old UAM ignored: A new registration is made when the UAM should have been migrated.
• Wrong NIC code: A trader picks a manufacturing code, or a manufacturer picks only a trading code.
• Missing units: Factory or branch addresses are left out, so the certificate shows the wrong district.
• Bank account of another person: The account entered does not belong to the enterprise or proprietor.
• Using a look-alike website: The owner pays a private site and never gets a real Udyam number.
• Wrong social category: This can hurt SC/ST or women procurement claims later.

Our expert checks each of these points before the final OTP is entered.

Udyam is permanent, but it is not a one-time task. Notification S.O. 2119(E) says the enterprise must update its information online, including ITR and GST return details for the previous year. The classification is then revised from these records.

What to update

• New mobile number or email
• New office or new plant or unit address
• New business activity or NIC code
• Change in bank account
• Change in number of employees
• Investment and turnover, if the portal asks for them

How to update or cancel

1. Open the update or cancel option on udyamregistration.gov.in.
2. Enter your Udyam number and choose OTP on the registered mobile or email.
3. Edit the details, or select cancellation and give the reason.
4. Submit with OTP and download the revised certificate.

Cancel only when the business closes or when a duplicate exists. If a proprietorship becomes a company or LLP, the PAN changes. The new entity needs its own fresh Udyam registration, and the old one should be cancelled.

Keep the data behind your category clean

Your category is read from your ITR and GST returns. Late or wrong returns can show the wrong turnover. File your GST returns and income tax return on time, so the certificate stays correct.

Many private websites look like the government portal. They use words like "Udyam" or "MSME" in their web address, show a form and then ask for payment. The official portal warns users about such fake sites.

• The official Udyam site is udyamregistration.gov.in. Check that the address ends with .gov.in.
• The government does not charge any fee. A "click to pay" button on a registration form is a warning sign.
• Do not share Aadhaar OTPs with unknown callers or websites.
• A real certificate can be checked with the verify option on the official portal.
• Complaints can be raised through the complaint link on the official portal.

TaxCaller is a private professional firm. We do not pretend to be a government site. We fill your form on the official portal while you watch, and our fee is for that help only.

2026 brought the biggest changes to MSME law since 2006. Here is what changed, with the official reference.

1. MSMED (Amendment) Act, 2026

Parliament passed the Micro, Small and Medium Enterprises Development (Amendment) Bill in August 2026, as noted in a PIB backgrounder. It became the amending Act of 2026. Notification a Ministry notification dated 12 October 2026 brought most parts into force from 15 October 2026.

• Registration (new Section 8): Filing is free and voluntary for all MSMEs, on a national digital platform notified by the Centre. States may notify their own platforms. Registration still happens on the Udyam portal today.
• Classification (Section 7): Limits are now set by notification, based on investment and turnover. The Udyam portal still shows the limits that apply from 1 April 2025.
• TReDS (new Sections 15A and 22A): Central public sector enterprises must settle MSME invoices through an RBI-authorised TReDS platform and report these payments. The Ministry had already required this of operating CPSEs through Notification S.O. 3507(E) dated 30 June 2026.
• Penalties (Sections 27 and 27A): Warning first, then money penalties decided by an adjudicating officer.
• Facilitation Councils (Section 21): New composition from 15 December 2026.
• Dispute timelines: The Act sets 90 days for mediation and 90 days for an arbitral award. These parts were not covered by a Ministry notification, so check their start date before relying on them.

2. Income-tax Act, 2025 from 1 April 2026

The new Act replaced the 1961 Act from tax year 2026-27. The MSE payment rule moved from Section 43B(h) to Section 37(2)(g). Section 43B(h) still applies to years up to FY 2025-26.

3. Union Budget 2026-27

• A ₹10,000 crore SME Growth Fund for growing MSMEs.
• ₹2,000 crore more for the Self-Reliant India Fund.
• TReDS to be the settlement platform for CPSE purchases from MSMEs, with CGTMSE-backed support for invoice discounting and a link between GeM and TReDS.
• Training of "Corporate Mitras" through ICAI, ICSI and ICMAI to help MSMEs with compliance in smaller towns.

4. Category change rules in force for 2026-27

The Ministry's circular of 24 October 2025 confirmed that the higher limits apply from 1 April 2025, and that reverse movement to a lower category takes effect only from the next 1 April.

Udyam registration is fully online, so it works the same in every state. Your certificate links you to the District Industries Centre (DIC) and the MSME office for your area. These offices help with schemes, clusters and local incentives.

• For loans and subsidies, your DIC is the first government contact.
• State industrial policies use your Udyam number for capital subsidy, interest subsidy and stamp duty benefits. Each state sets its own terms.
• Delayed payment cases go to the MSEFC of the state where the supplier is located.
• Help desks such as the Champions control rooms and the Ministry of MSME grievance system can also guide you.

TaxCaller's office is in Ghaziabad, Uttar Pradesh. We handle Udyam registration for businesses in Ghaziabad, Noida, Delhi and the rest of India by phone and video call.

• Registered firm since 2018: TaxCaller India LLP (LLPIN AAQ-7388), with an office in Ghaziabad.
• Official portal only: We file on udyamregistration.gov.in in front of you. You see every field.
• Fee told upfront: You know our fee, + GST, before work starts. The government fee is nil.
• Category and code check: We check your ITR and GST figures and choose NIC codes with care.
• Help after the certificate: Yearly updates, buyer letters on the 45-day rule and links with GST and income tax work.
• Content reviewed by an advocate: This page is reviewed by Abhinay Rai, Advocate and founder.
• Clear hours: Monday to Friday 9 AM to 6 PM, Saturday 10 AM to 4 PM.

Have a question first? Contact us or try our free tax tools.

Udyam registration is often the first step. These services usually follow.

• GST registration if your turnover crosses the GST limit or you sell across states.
• GST return filing to keep your turnover data correct.
• Company registration when you want to convert into a private limited company.
• Trademark registration at the lower small enterprise fee.
• Accounting and bookkeeping to track MSE dues and the 45-day limit.
• Income tax filing so your ITR supports your MSME category.
• TDS return filing for businesses with staff or contractor payments.
• FSSAI registration for food businesses.