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Udyog Aadhaar / Udyam Registration : MSME Guide
Udyog Aadhaar no longer exists as an active registration system. It was the earlier MSME registration process built around the business owner’s Aadhaar number and it was phased out on 1 July 2020. Udyam Registration took its place and is now the government’s official system for recognising Micro Small and Medium Enterprises.
Registering gives your business a permanent Udyam Registration Number and an e-certificate. These open up priority lending payment protections government tender access and a range of scheme benefits. There is no registration fee and the system pulls your PAN GST and income tax records automatically through Aadhaar-based verification.
What Changed When Udyog Aadhaar Became Udyam
The old system had a significant gap: businesses self-declared their figures and nothing was verified. Udyam closed that gap. PAN GST filings and income tax records are now checked automatically which makes fraudulent registrations and duplicate entries much harder to push through.
How businesses are classified also changed. Previously only investment figures mattered. Under Udyam both investment and annual turnover must meet the defined thresholds for a given category. Neither figure alone is sufficient.
Udyam certificates also come with a QR code allowing banks and tender portals to verify them on the spot.
One practical point worth noting: an old Udyog Aadhaar Memorandum carries no weight with banks or government portals today. If that is all a business holds migration to Udyam is the only way to restore MSME recognition.
How to Register on the Udyam Portal?
The official portal is udyamregistration.gov.in. Registration costs nothing. Several unofficial websites that charge fees for this service exist and are worth avoiding. Go directly to the government URL.
- Visit udyamregistration.gov.in and select “For New Entrepreneurs not registered as MSME”
- Enter the Aadhaar number of the proprietor managing partner or authorised signatory and verify with the OTP sent to the Aadhaar-linked mobile
- Enter your PAN which is cross-checked against income tax records without any manual input needed
- Fill in enterprise details: name type address bank information and the relevant NIC activity code
- Link GSTIN where applicable and submit the self-declaration
A clean application generates the Udyam Registration Number and e-certificate quickly sometimes within minutes. The Aadhaar-linked mobile number needs to be active at the time of registration as the OTP goes only to that number.
What Udyam Registration Gets You?
Collateral-free loans and priority-sector credit are among the more immediate benefits. Registered MSMEs generally access these at better rates than unregistered businesses.
On payments the MSMED Act sets a 45-day settlement requirement for buyers. If that deadline is not met the MSME Samadhaan portal provides a formal channel to escalate the matter.
In government procurement registered businesses get quota reservations tender preferences and entry into the GeM platform. Trademark and patent filing fees also come at a lower rate for registered MSMEs. Scheme eligibility across central and state government programmes is tied to registration status as well.
For most small businesses completing this registration is the single most direct route into the government’s MSME support structure.
Migrating from Udyog Aadhaar to Udyam
Any business that holds only an old Udyog Aadhaar Memorandum is treated as unregistered under the current system. The benefits and recognition that came with the old certificate no longer apply.
Migration is done on the same portal. On udyamregistration.gov.in select the option for businesses holding a UAM or EM-II registration verify via Aadhaar OTP and enter current PAN GSTIN and financial details. A new Udyam Registration Number and certificate are issued after verification.
Migration is not legally compulsory but not migrating means losing all MSME status. Once completed turnover and investment figures should be reviewed and updated each financial year to keep the classification accurate.
MSME Classification Limits (Both Conditions Must Apply)
| Category | Investment Up To | Turnover Up To |
| Micro | ₹1 crore | ₹5 crore |
| Small | ₹10 crore | ₹50 crore |
| Medium | ₹50 crore | ₹250 crore |
Limits revised effective 1 April 2025. GST and export turnover are excluded from these calculations.
Source: Ministry of MSME udyamregistration.gov.in
Written By
Reviewed ByLast Updated: 6th July 2026
Frequently Asked Questions (FAQs)
What is Udyog Aadhaar?
Udyog Aadhaar was the MSME registration system that ran until 1 July 2020 formalised through a Udyog Aadhaar Memorandum. Udyam Registration replaced it and is now the only recognised system. A standalone UAM does not provide MSME benefits and businesses still holding one need to migrate to Udyam to regain recognition.
Is Udyog Aadhaar the same as Udyam registration?
No. Both relate to MSME recognition but they are different systems entirely. Udyam introduced automatic verification of PAN GST and tax data and changed classification to factor in both investment and turnover. Banks and tender portals do not accept the old Udyog Aadhaar certificate.
How do I register for Udyam using Aadhaar?
Go to udyamregistration.gov.in select the new-entrepreneur option enter the Aadhaar number of the proprietor or authorised signatory and verify via OTP. Enter PAN for automatic verification fill in enterprise and bank details along with the NIC code link GSTIN where applicable and submit. The registration number and certificate are issued after verification.
What are the benefits of Udyam registration?
Access to collateral-free loans and priority-sector lending 45-day payment protection under the MSMED Act preference in government tenders GeM access reduced trademark and patent fees and eligibility for government subsidy schemes. All from a free registration.
How do I download my Udyam certificate?
The certificate is sent to the registered email on completion. To retrieve it later use the Print Certificate option on the portal enter the Udyam Registration Number and verify with an OTP on the Aadhaar-linked mobile. The certificate PDF contains a QR code for direct verification.
Can I migrate from Udyog Aadhaar to Udyam?
Yes. On udyamregistration.gov.in select the migration option for UAM or EM-II holders verify via Aadhaar OTP and submit current details and financials. A fresh Udyam Registration Number and certificate are issued. Since the old UAM holds no MSME status migration is a practical necessity.
Is Aadhaar mandatory for MSME registration?
Yes. The Aadhaar number of the proprietor managing partner or authorised signatory is required and verified against UIDAI records via OTP. Companies and LLPs must also provide PAN and GSTIN where applicable. Registration cannot proceed without this step.
How do I update my Udyam registration
Log in at udyamregistration.gov.in using the Udyam Registration Number and an OTP on the Aadhaar-linked mobile then go to the update section. Turnover and investment data is pulled from GST and tax records automatically. Address contact details and bank information can be edited manually. Reviewing this annually prevents classification errors during loan applications or tender submissions.
