How to Apply for Udyog Aadhaar

Udyog Aadhaar, now officially known as Udyam Registration, is a unique identification number issued by the Ministry of Micro, Small and Medium Enterprises (MSME) under the Government of India. It serves as a critical gateway for small business owners to access a wide range of benefits, including government subsidies, easier credit access, tax incentives, and priority in public procurement. For entrepreneurs, artisans, and self-employed individuals, securing Udyam Registration is not just a bureaucratic formality—it’s a strategic move toward sustainable growth and formal recognition in India’s economic ecosystem.

Unlike traditional registration processes that required extensive paperwork and multiple visits to government offices, Udyam Registration has been designed as a fully online, paperless, and self-declaration-based system. This simplification has dramatically reduced barriers to entry for small businesses, especially in rural and semi-urban areas. The process takes less than 15 minutes to complete, and once registered, businesses receive an instant Udyam Registration Number (URN) along with a digitally signed certificate.

This tutorial provides a comprehensive, step-by-step guide to applying for Udyam Registration. Whether you’re a sole proprietor running a local bakery, a craftsman manufacturing handloom products, or a startup offering digital services, this guide will walk you through every phase—from eligibility verification to certificate download—with clarity and precision. We’ll also cover best practices, essential tools, real-world examples, and frequently asked questions to ensure you complete your registration without errors or delays.

Step-by-Step Guide

Applying for Udyam Registration is designed to be simple, but accuracy is key. A single mistake in data entry—such as an incorrect PAN or Aadhaar number—can lead to rejection or delays. Follow these steps carefully to ensure a seamless registration experience.

Step 1: Verify Eligibility

Before beginning the application, confirm that your enterprise qualifies under the Udyam Registration framework. The Government of India classifies enterprises into three categories based on investment in plant and machinery or equipment and annual turnover:

• Micro Enterprise: Investment up to ₹1 crore and turnover up to ₹5 crore
• Small Enterprise: Investment up to ₹10 crore and turnover up to ₹50 crore
• Medium Enterprise: Investment up to ₹50 crore and turnover up to ₹250 crore

These thresholds were revised under the new MSME definition effective from July 1, 2020. The classification now considers both investment and turnover, giving businesses flexibility based on their financial structure. Note that service-based enterprises are also eligible, with the same turnover limits applying.

Eligible entities include:

• Sole proprietorships
• Partnership firms
• Private limited companies
• One Person Companies (OPCs)
• LLPs (Limited Liability Partnerships)
• Hindu Undivided Families (HUFs)
• Cooperative societies
• Trusts and societies engaged in manufacturing or services

If your business falls under any of these categories and meets the investment or turnover criteria, you are eligible to apply.

Step 2: Gather Required Documents

Udyam Registration is a self-declaration system, meaning you do not need to upload documents. However, you must have the following details ready before starting the application:

• Aadhaar Number: The Aadhaar of the enterprise owner or authorized representative. This is mandatory and must be linked to a mobile number.
• PAN Number: Permanent Account Number of the business owner or entity. If the business is registered as a company or LLP, use the entity’s PAN.
• Business Name and Address: The official name under which the business operates and its registered address.
• Bank Account Details: The name of the bank, branch, and account number. The account must be in the name of the business or owner.
• Nature of Business: Select the correct NIC (National Industrial Classification) code that best describes your primary activity. This can be found on the NIC website or during the application process via a searchable dropdown.
• Investment and Turnover Estimates: You’ll need to declare your approximate investment in plant and machinery or equipment, and your turnover for the previous financial year. If you’re a new business without turnover data, you may leave this blank and update later.

Ensure that the Aadhaar and PAN details you provide match exactly with government records. Any mismatch will result in an error during verification.

Step 3: Visit the Official Udyam Registration Portal

The only authorized portal for Udyam Registration is https://udyamregistration.gov.in. Avoid third-party websites or intermediaries claiming to assist with registration—they may charge fees or collect personal data unnecessarily.

Open your preferred web browser (Chrome, Firefox, or Edge are recommended) and navigate to the official site. The homepage is clean and straightforward, with a large button labeled “Click here for new Udyam Registration.” Click on it to begin.

Step 4: Enter Aadhaar and Validate

The first screen prompts you to enter your 12-digit Aadhaar number. After typing it, click “Get OTP.” An One-Time Password will be sent to the mobile number registered with your Aadhaar.

Enter the OTP and click “Validate.” If the details are correct, the system will retrieve your name, address, and gender as per Aadhaar records. Verify this information carefully. If it’s incorrect, you must update your Aadhaar details through the UIDAI portal before proceeding.

Once validated, the system will ask if you want to register using your Aadhaar or use an alternative method. Select “Yes, I want to register using my Aadhaar” to continue.

Step 5: Enter PAN and Business Details

The next screen requires you to enter your PAN. Type it carefully and click “Validate.” The system will cross-check the PAN with the Income Tax Department’s database. If the PAN is invalid or not linked to the Aadhaar, you’ll receive an error. In such cases, ensure your PAN is active and linked to your Aadhaar via the NSDL or UTIITSL portal.

After successful validation, you’ll be asked to fill in your business details:

• Enterprise Name: Enter the legal name of your business as it appears on bank records or GST registration.
• Enterprise Type: Select from the dropdown: Individual, Partnership, Company, LLP, Trust, Society, Cooperative, etc.
• Address: The complete registered office address. This must be a physical location, not a P.O. Box.
• State and District: The system will auto-fill based on your PIN code. If not, select manually.
• Postal Code: Enter the correct 6-digit PIN code for your business location.
• Mobile Number: Provide a contact number that is active and accessible. This will be used for future communications.
• Email Address: A valid email is required to receive your registration certificate and updates.

Ensure all information matches your bank account and GST records. Inconsistencies may affect eligibility for government schemes later.

Step 6: Declare Investment and Turnover

This is a crucial step. You must declare your investment in plant and machinery or equipment and your annual turnover for the previous financial year.

For manufacturing enterprises:

• Investment refers to the original cost of machinery, tools, and equipment used in production.
• Do not include land, buildings, or furniture.

For service enterprises:

• Investment refers to equipment used for providing services—computers, printers, diagnostic tools, etc.

For turnover:

• Use your audited financial statements or income tax returns if available.
• If you’re a new business without prior turnover, enter “Nil” or “Not Applicable.”

Use the dropdown to select your NIC code. Type a keyword related to your business (e.g., “textile,” “software,” “catering”) and choose the most accurate match. Incorrect NIC codes can lead to misclassification and loss of benefits.

Step 7: Provide Bank Details

Enter the following bank information:

• Bank Name
• Branch Name
• Account Number
• IFSC Code

The account must be active and in the name of the enterprise or the owner. If you’re registering as a partnership or company, the account must be in the entity’s name. The system does not verify bank details at the time of registration, but discrepancies may be flagged during audits or subsidy disbursements.

Step 8: Review and Submit

Before submission, the portal displays a summary of all entered details. Carefully review each field. You can click “Edit” next to any section to make corrections.

Once satisfied, check the declaration box: “I declare that the information provided above is true and correct to the best of my knowledge.”

Click “Submit.” The system will generate your Udyam Registration Number (URN) instantly. A confirmation message will appear with your URN, enterprise name, and date of registration.

Step 9: Download and Save Certificate

After submission, you will be redirected to a page displaying your Udyam Registration Certificate in PDF format. Download it immediately. The certificate includes:

• Your unique Udyam Registration Number (URN)
• Enterprise name and address
• Category (Micro, Small, Medium)
• NIC code and business activity
• Date of registration
• Digital signature of the Ministry of MSME

Save the PDF in multiple locations: your computer, cloud storage, and print a hard copy. This document is your official proof of registration and may be required for bank loans, government tenders, or tax filings.

Step 10: Update Information (If Needed)

Your Udyam Registration is valid for life, but certain details can be updated if they change:

• Business address
• Bank account
• Ownership structure
• Investment or turnover figures

To update, log in to the Udyam portal using your URN and Aadhaar. Click “Update Udyam Registration,” make the necessary changes, and submit. The system will generate a new certificate with the updated details. There is no fee for updates.

Best Practices

Applying for Udyam Registration is simple, but adopting best practices ensures long-term compliance and maximizes the benefits you receive.

Use the Correct PAN and Aadhaar

Never use someone else’s Aadhaar or PAN, even if they are a family member or partner. The system cross-verifies these with government databases. Mismatches result in rejection and may trigger compliance alerts. If your PAN is not linked to your Aadhaar, link it immediately via the Income Tax Department’s website.

Declare Accurate Investment and Turnover

Understating your turnover to qualify as a micro enterprise may seem advantageous, but it can backfire. Government schemes often have tiered benefits based on enterprise size. If you later grow beyond micro limits, you’ll need to re-register as a small or medium enterprise. Accurate declarations ensure you receive the right level of support from day one.

Keep Your Contact Details Updated

The Udyam portal uses your mobile number and email to send alerts about scheme notifications, compliance deadlines, or policy changes. If you change your number or email, update them immediately on the portal. Failure to do so may cause you to miss critical opportunities.

Link Udyam with GST and Bank Accounts

Many state governments and financial institutions now require Udyam Registration as a prerequisite for GST subsidies, MSME loans, or credit guarantees. Link your Udyam number with your GSTIN on the GST portal and ensure your bank account is linked to your Udyam profile. This integration streamlines subsidy disbursement and reduces paperwork.

Regularly Monitor Scheme Notifications

The Ministry of MSME regularly announces new schemes—such as interest subvention, collateral-free loans, or export incentives. Registered enterprises receive priority access. Bookmark the MSME portal and subscribe to their newsletter via email to stay informed.

Do Not Rely on Third-Party Agents

Many websites and agents offer “Udyam Registration Assistance” for a fee. These services are unnecessary. The entire process is free and can be completed in under 15 minutes. Paying for such services exposes you to data misuse and fraud. Always use the official portal.

Retain Proof of Registration

Always keep a digital and physical copy of your Udyam certificate. You may need to present it when applying for government tenders, participating in trade fairs, or seeking export incentives. Store it in a secure, accessible location.

Update Annually (If Required)

While Udyam Registration is permanent, you are encouraged to update your turnover and investment figures annually, especially if your business has grown. This ensures your classification remains accurate and you continue to qualify for relevant schemes.

Tools and Resources

To make your Udyam Registration process smoother and more accurate, use these official and trusted tools.

Official Udyam Registration Portal

https://udyamregistration.gov.in – The only legitimate platform for registration. All other sites are unofficial and potentially fraudulent.

National Industrial Classification (NIC) Code Finder

https://www.mospi.gov.in/national-industrial-classification-nic-2008 – Use this official database to find the correct NIC code for your business activity. Search by keyword or browse by sector. For example, “tailoring” corresponds to NIC code 14120, while “software publishing” is 62010.

Aadhaar Linking Portal

https://uidai.gov.in – If your Aadhaar is not linked to your mobile number or PAN, use this portal to update or verify your details. You can also check the status of your Aadhaar linkage here.

PAN Verification Portal

https://www.incometax.gov.in/iec/foportal – Use this to verify your PAN status and link it to your Aadhaar if needed. The portal also allows you to check if your PAN is active and correctly registered.

MSME Ministry Website

https://msme.gov.in – The official site of the Ministry of MSME. Here, you can find policy updates, scheme details, eligibility criteria, and downloadable forms. It also hosts a searchable database of registered enterprises (for public verification).

Bank IFSC Code Finder

https://www.rbi.org.in – The Reserve Bank of India’s website allows you to search for IFSC codes by bank name, branch, and city. Use this to ensure your IFSC is accurate before entering it in the Udyam form.

Document Scanner Apps

While documents are not uploaded during registration, having digital copies of your PAN card, Aadhaar card, and bank passbook can help you fill details accurately. Use free apps like Adobe Scan, CamScanner, or Google Lens to capture and store these documents securely on your phone.

Google Sheets Template for Tracking

Create a simple spreadsheet to track your registration status, URN, date of registration, NIC code, and next update date. This helps you manage multiple registrations (if you own multiple businesses) and ensures you don’t miss renewal or update deadlines.

Real Examples

Let’s examine three real-world scenarios to illustrate how Udyam Registration works in practice.

Example 1: Rural Artisan – Handmade Jute Bags

Meera, a 42-year-old woman from Odisha, runs a small home-based unit producing handwoven jute bags. She employs three local women and uses a manual loom and stitching machines with an estimated investment of ₹60,000. Her annual turnover is ₹3.2 lakh.

Meera follows the steps:

• Uses her Aadhaar and PAN (linked to her mobile number).
• Selects “Manufacturing” as enterprise type.
• Chooses NIC code 14110 (Manufacture of textiles, n.e.c.).
• Enters her home address as the registered office.
• Declares investment of ₹60,000 and turnover of ₹3.2 lakh.
• Provides her bank account details.

She receives her Udyam Registration Number within minutes. Later, she applies for a ₹1 lakh loan under the Prime Minister’s Employment Generation Programme (PMEGP) and is approved due to her Udyam status. She also gains access to free training on e-commerce platforms to sell her products online.

Example 2: Urban Startup – Digital Marketing Agency

Rahul, a 28-year-old entrepreneur in Pune, runs a digital marketing agency with two employees. He uses laptops, software licenses, and a projector for client presentations. His investment is ₹1.8 lakh, and his turnover for the last financial year was ₹48 lakh.

Rahul:

• Uses his company’s PAN and his personal Aadhaar (as the director).
• Selects “Service” as enterprise type.
• Chooses NIC code 62020 (Computer programming, consultancy and related activities).
• Enters his office address and GSTIN.
• Declares investment of ₹1.8 lakh and turnover of ₹48 lakh.

He is classified as a Small Enterprise. He applies for a credit guarantee under the CGTMSE scheme and secures a ₹10 lakh loan at a reduced interest rate. He also registers on the Government e-Marketplace (GeM) portal to bid for public sector contracts, which require Udyam Registration.

Example 3: Family-Owned Bakery

The Sharma family operates a bakery in Jaipur under the name “Sharma Sweet House.” The business is registered as a sole proprietorship. They have an oven, mixers, and refrigerators with an investment of ₹9.5 lakh and annual turnover of ₹45 lakh.

Mr. Sharma:

• Uses his personal Aadhaar and PAN.
• Selects “Manufacturing” and NIC code 10710 (Manufacture of bread and fresh pastry goods).
• Enters his shop’s address and bank account.
• Declares turnover as ₹45 lakh—just under the ₹50 crore threshold for Small Enterprise.

He receives his certificate and uses it to apply for a state government subsidy on electricity bills for small businesses. He also gets listed in the local MSME directory, which brings him new wholesale clients.

FAQs

Is Udyam Registration mandatory for small businesses?

No, it is not mandatory by law. However, without Udyam Registration, you cannot access most government benefits, subsidies, or credit guarantees. Most banks, government tenders, and state schemes require it as proof of MSME status.

Can I apply for Udyam Registration if I don’t have a GSTIN?

Yes. GST registration is not a prerequisite for Udyam Registration. You can apply even if you’re not GST-registered, provided you meet the investment and turnover criteria.

How long does Udyam Registration take?

The process takes less than 15 minutes if you have all details ready. Your Udyam Registration Number (URN) is generated instantly upon submission.

Is there a fee to apply for Udyam Registration?

No. The entire process is completely free. Any website or individual charging for Udyam Registration is fraudulent.

Can I register more than one business under one Aadhaar?

Yes. You can register multiple enterprises under the same Aadhaar and PAN, as long as each has a distinct business name and address. Each will receive a separate Udyam Registration Number.

What if my business is registered as a company? Can I still apply?

Yes. Private limited companies, LLPs, and other incorporated entities can apply using the entity’s PAN. The owner or authorized signatory must use their Aadhaar for verification.

Can I update my Udyam Registration details later?

Yes. You can update your business address, bank account, turnover, or investment details anytime through the Udyam portal. There is no limit to how many times you can update.

Does Udyam Registration expire?

No. Once issued, your Udyam Registration is valid for life. However, you must update your turnover and investment figures if they change significantly to maintain accurate classification.

Can NRIs apply for Udyam Registration?

NRIs cannot apply directly unless they have an Indian Aadhaar and PAN. However, if an NRI owns a business in India through a local partner or entity, the Indian resident can apply on behalf of the business using their Aadhaar and PAN.

What happens if I enter wrong information during registration?

If you enter incorrect information, your application may be rejected or flagged for verification. You can correct errors after registration by logging in and using the “Update Udyam Registration” feature. There is no penalty for updates.

How can I verify if my Udyam Registration is genuine?

Visit the official MSME portal at https://msme.gov.in and use the “Verify Udyam Registration” tool. Enter your URN or business name to confirm its authenticity.

Conclusion

Applying for Udyam Registration is one of the most impactful steps a small business owner in India can take. It transforms an informal enterprise into a formally recognized entity, unlocking access to financial support, market opportunities, and policy protections. The process is designed to be fast, free, and user-friendly—eliminating the red tape that once discouraged millions of entrepreneurs.

By following the steps outlined in this guide, you ensure that your registration is accurate, compliant, and optimized for maximum benefit. Remember: accuracy in your details, use of official tools, and regular updates are the keys to long-term success.

Don’t delay. Whether you’re a street vendor, a tech startup, or a family-run workshop, your business deserves recognition. Complete your Udyam Registration today, and take the first real step toward scaling your enterprise with confidence and credibility.

The government has built the platform. All you need to do is click, declare, and grow.