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What is the Udyam Registration Number for MSMEs in India?

What is the Udyam Registration Number for MSMEs in India?

Udyam Registration is the Government of India’s official system for recognizing Micro, Small, and Medium Enterprises (MSMEs). It has replaced the earlier Udyog Aadhaar registration system. Once registered, a business receives a permanent Udyam Registration Number, which serves as its official MSME identity. This registration can make it easier to access government schemes, priority sector lending, business loans, and procurement opportunities. Since the process is completely online, paperless, and free, every eligible MSME should consider registering through the official Udyam portal.

An Udyam Registration Number (URN) is the permanent 12-digit identification number issued by the Government of India to officially recognize a registered Micro, Small, or Medium Enterprise (MSME).

Running a small business is challenging enough. The last thing any entrepreneur wants is to miss out on government benefits simply because they are not officially recognized. Yet, many businesses continue to operate without completing their registration, making it harder to access easier credit, government schemes, and other business support. If you own a Micro, Small, or Medium Enterprise (MSME) in India, getting recognized via Udyam registration can open several doors for your business.

If you are wondering what Udyam registration is, it is a free online registration provided by the Ministry of MSME that gives every registered business a unique 12-digit identity. Udyam registration for MSMEs has replaced the earlier Udyog Aadhaar system and is now the official method of MSME registration in India. In this article, we’ll explain what the Udyam Registration Number is, how it works, its benefits, and how you can obtain and verify it.

What is Udyam registration?

Many small business owners or budding entrepreneurs often wonder what Udyam registration is. It is the Government of India’s official online process for registering a Micro, Small, or Medium Enterprise (MSME) in the country. Introduced on 1 July 2020, it replaced the earlier Udyog Aadhaar system and made MSME registration simpler and fully digital. The registration process is free, paperless, and based entirely on self-declaration. No physical documents are required.

Once registration is complete, the business receives a permanent Udyam Registration Number (URN), which is a unique 12-digit identification number, along with an e-certificate carrying a QR code. This certificate serves as official proof that your business is recognized as an MSME in India. The objective of the system is to help micro, small, and medium enterprises formalize their businesses easily and access various government benefits and support schemes.

What is the Udyam Registration Number (URN)?

The Udyam Registration Number is a unique and permanent 12-digit identification number issued to every business that successfully completes Udyam Registration. It serves as the enterprise’s official digital identity and is commonly referred to as the MSME registration number. The URN is linked with the business’s PAN and GSTIN, and the details are automatically verified through the Income Tax and GST databases. This number is used while applying for various MSME schemes, government benefits, priority sector lending, and other facilities available to registered MSMEs.

What has changed between Udyam registration and Udyog Aadhaar?

Earlier, MSMEs in India were registered through the Udyog Aadhaar Memorandum (UAM) and received an Udyog Aadhaar Number. From 1 July 2020, the Government introduced Udyam registration for MSMEs, making it the official registration system. Existing UAM holders were required to migrate to the new Udyam portal to continue enjoying MSME-related benefits.

The table below depicts the differences between the two systems:

BasisUdyog AadhaarUdyam Registration
Introduced In20152020
Registration MethodBased mainly on self-declarationIntegrated with PAN and GST databases for automatic verification.
VerificationLimited verificationAuto-verified through Income Tax and GST records.
Registration NumberUdyog Aadhaar NumberUdyam Registration Number
Current StatusReplaced by Udyam RegistrationOfficial MSME registration system in India

How are MSMEs classified?

MSMEs in India are grouped into three categories: Micro, Small, and Medium. The classification is based on two parameters: the enterprise’s investment in plant, machinery, or equipment and its annual turnover.

CategoryInvestment LimitTurnover Limit
Micro≤ ₹2.5 Crore≤ ₹10 Crore
Small≤ ₹25 Crore≤ ₹10 Crore – ≤ ₹100 Crore
Medium≤ ₹125 Crore≤ ₹100 Crore – ≤ ₹500 Crore

Note: The government revises the classification threshold criteria from time to time. The latest revisions were made in the Union Budget 2025 and came into effect from 1 April 2025.

What are the benefits of having an Udyam Registration Number?

An Udyam Registration Number is more than just an identification number. It helps a business become an officially recognized entity in the country. Its key advantages include:

  • Access to government schemes: Registered MSMEs can apply for various government schemes, incentives, and subsidy programs launched for the sector.
  • Easier access to business loans: Several banks and NBFCs in India require a valid MSME Registration Number to process business loan applications.
  • Priority sector lending: Registered MSMEs may benefit from priority sector lending norms and collateral-free loans under schemes such as CGTMSE.
  • Potentially lower borrowing costs: Some lenders offer better loan terms or competitive interest rates to registered MSMEs.
  • Protection against delayed payments: MSMEs receive legal protection under the MSMED Act in cases where buyers delay payments beyond the prescribed period.
  • Preference in government procurement: Many government departments and public sector organizations provide procurement benefits to registered MSMEs, including participation through the GeM portal.
  • Improved business credibility: Being officially recognized as an MSME can strengthen your credibility with lenders, suppliers, customers, and business partners.

How to apply for an Udyam Registration Number?

The process to apply for Udyan registration for MSMEs is completely free, online, and paperless. It involves these simple steps:

  1. Visit the official Udyam registration portal <udyamregistration.gov.in>. Register only on the official government website and be cautious of fake websites that charge a fee.
  2. If you are registering for the first time, select “For New Entrepreneurs”.
  3. Enter your Aadhaar details and validate using a One-Time Password (OTP).
  4. Fill in the business details. These may include GSTIN, business type, office address, etc.
  5. The system verifies your details automatically through the Income Tax and GST databases.
  6. Submit the application form to generate your URN. You can download the Udyam Certificate and the QR code for future use.

What are the documents needed for Udyam registration?

You should keep the following documents ready when applying for Udyam registration:

  • Aadhaar card (of the proprietor, managing partner, or authorized director).
  • PAN card
  • GSTIN (Goods and Services Tax Identification Number)
  • Bank passbook or cheque
  • Business’s NIC code

Since the portal verifies most information directly through government databases, the registration process remains quick, paperless, and does not normally require document uploads.

How to check or verify an Udyam Registration Number?

If you already have a URN, you can verify it in the following steps:

  1. Visit the official Udyam registration portal.
  2. Click on the “Verify Udyam Registration Number” or “Print/Verify” option.
  3. Enter the URN and complete OTP verification.
  4. The business’s details will be displayed on the screen for verification. This option is useful for those verifying a vendor’s MSME status.

How does Udyam registration help you get an MSME business loan?

You already know what Udyam registration is for MSMEs in India. But do you know how it helps in getting an MSME business loan? The answer is quite simple. It allows lenders to assess your business status and retrieve all essential details by just entering your MSME registration number on the Udyam portal. It also makes your business eligible for priority sector lending and specialized collateral-free credit schemes for MSMEs. Tata Capital offers customized business loan solutions for enterprises registered as MSMEs in India. You can get financing of up to Rs. 90 lakhs at highly competitive interest rates.

What is the Udyam Registration Number?

Whether you are a budding entrepreneur or someone who has just started a small business in India, understanding what Udyam registration is critical. It is the first step towards formalizing your business and accessing the benefits available to MSMEs. An Udyam Registration Number serves as your enterprise’s official digital identity and can help you access government schemes, business credit, and procurement opportunities.

However, you must complete the registration only through the official government portal and verify the latest MSME classification limits before applying. Once registered, you can explore Tata Capital Business Loans to support your business expansion and funding needs.

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FAQs

What is the Udyam Registration Number?

The Udyam Registration Number (URN) is the unique identification number given to a business after it is registered as an MSME on the Udyam portal. It remains with the enterprise permanently and acts as official proof of its MSME status while applying for government benefits, loans, or other support programs.

Is Udyam Registration free?

Yes. There is no fee for registering your business under the Udyam portal. The registration process is provided by the Government of India and can be completed online without paying any charges. To avoid unnecessary costs, always use the official Udyam Registration website and stay away from unofficial portals that charge money.

What is the difference between Udyam and Udyog Aadhaar?

Udyog Aadhaar was the earlier method of registering MSMEs. Today, new registrations are done only through the Udyam portal. Unlike the old system, Udyam checks business details through PAN and GST records, making the registration process more accurate and easier for government agencies and lenders to verify.

How do I get an Udyam Registration Number?

To get an Udyam Registration Number, visit the official Udyam portal and complete the online registration. After you enter your Aadhaar and business details, the system verifies the information through government records. Once the process is complete, your Udyam certificate is generated along with your unique registration number.

How can I check my Udyam Registration Number?

If you have already registered your business, you can find your Udyam Registration Number on your Udyam certificate. You can also visit the official Udyam portal and access your registration details using the required information. From there, you can view or download the certificate whenever required.

Is GST mandatory for Udyam Registration?

Not every business needs a GSTIN to register under Udyam. If your business is required to obtain GST registration under the applicable tax rules, you should provide your GSTIN during the registration process. Whether GST is compulsory depends on the type of business you run and its turnover.

Does an Udyam Registration Number help in getting a business loan?

Having an Udyam Registration Number can make your business easier to identify as a recognized MSME. Many banks and financial institutions ask for it while evaluating MSME loan applications. Although it does not guarantee loan approval, it can support your application and help you access MSME-specific lending schemes.
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