Explaining the Udyam Registration Portal Eligibility Criteria for MSMEs

Small and Medium Enterprises (SMEs) play a crucial role in driving economic growth and generating employment opportunities in any country. To support and promote the growth of these enterprises, the Indian government launched the Udyam Registration Portal. This portal aims to provide various benefits and schemes to Micro, Small, and Medium Enterprises (MSMEs). However, to avail of these benefits, enterprises must meet specific eligibility criteria. In this article, we will explore the essential eligibility requirements for registering on the Udyam Registration Portal.

1. Definition of MSMEs

Before delving into the eligibility criteria, let’s first understand what constitutes a Micro, Small, or Medium Enterprise. The categorization is based on the investment and annual turnover of the enterprise. As per the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006, the classification is as follows:

Micro Enterprises

  • Investment: Up to INR 1 crore
  • Annual Turnover: Up to INR 5 crores

 Small Enterprises

  • Investment: Up to INR 10 crores
  • Annual Turnover: Up to INR 50 crores

Medium Enterprises

  • Investment: Up to INR 50 crores
  • Annual Turnover: Up to INR 250 crores

Related Read: Udyam Registration For Women Entrepreneurs: Empowering Small Businesses

2. Eligibility Criteria for Udyam Registration

To avail the benefits provided through the Udyam Registration Portal, enterprises must meet the following eligibility criteria:

Age of the Enterprise

  • The enterprise must be a new or existing entity. It should not have completed more than ten years from the date of incorporation/registration.

Aadhaar Number of the Proprietor/Partners/Directors

  • The enterprise should have an Aadhaar number for the proprietor or partners or directors. This number will be used for registration purposes.

PAN Number of the Enterprise

  • The enterprise must have a valid Permanent Account Number (PAN), which is essential for financial transactions and verification.

GSTIN (Goods and Services Tax Identification Number)

  • The enterprise should possess a valid GSTIN. This is necessary for businesses engaged in the supply of goods and services.

Turnover and Investment Limits

  • The enterprise must fall within the investment and annual turnover limits specified for each category (Micro, Small, or Medium).

Exclusion from Registration

  • Enterprises involved in manufacturing or producing goods that require compulsory industrial licenses do not qualify for Udyam Registration. They must apply for Industrial Entrepreneur Memorandum (IEM) or Industrial License (IL) instead.

3. The Udyam Registration Process

Once the enterprise meets the eligibility criteria, it can proceed with the Udyam Registration process. Here are the steps to register:

Online Registration

  • The registration process is entirely online, and applicants can visit the official Udyam Registration Portal to apply.

Aadhaar Verification

  • During the registration process, the Aadhaar number of the proprietor/partners/directors will undergo verification.


  • The applicant needs to provide self-declaration regarding the enterprise’s details, including ownership, bank account, and employment.

Verification of Details

  • The provided information will be verified by the authorities, and any discrepancies may lead to the rejection of the application.

 Udyam Registration Certificate

  • Upon successful verification, the enterprise will receive the Udyam Registration Certificate, confirming its registration on the portal.

4. Benefits of Udyam Registration

The Udyam Registration Portal offers various benefits to registered MSMEs:

Access to Government Schemes

  • Registered enterprises gain access to a wide range of government schemes and initiatives that aim to support and promote their growth.

Collateral-Free Loans

  • MSMEs can avail collateral-free loans at low interest rates from various financial institutions.

Subsidies and Incentives

  • The government provides subsidies and incentives to MSMEs, encouraging them to thrive in a competitive market.

 Quicker Payment Cycles

  • MSMEs registered on the portal often receive timely payments for their products and services.

Also Read: Udyam Registration Benefits in Hindi


The Udyam Registration Portal has emerged as a game-changer for Micro, Small, and Medium Enterprises in India. By meeting the eligibility criteria and registering on the portal, MSMEs can access numerous benefits and opportunities that can help them grow and succeed in today’s dynamic business environment.


1. Can existing enterprises apply for Udyam Registration?

Yes, existing enterprises that meet the eligibility criteria can apply for Udyam Registration.

2. Is Udyam Registration mandatory for all MSMEs?

Udyam Registration is not mandatory but highly recommended for MSMEs to avail of various government benefits.

3. How often should an enterprise renew its Udyam Registration?

The Udyam Registration Certificate is valid for a lifetime and does not require renewal.

4. Are service-based businesses eligible for Udyam Registration?

Yes, service-based businesses can also apply for Udyam Registration if they meet the eligibility criteria.

5. Can enterprises with more than ten years of existence apply for Udyam Registration?

No, enterprises with more than ten years of existence are not eligible for Udyam Registration.

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