What Udyam registration is
Udyam is the government's registration for micro, small and medium enterprises (MSMEs). You file it online on the Udyam portal of the Ministry of MSME. The portal says the process is free, paperless and based on self-declaration. You do not upload any documents. Your Aadhaar number starts the form. Your PAN and GST details then pull in your investment and turnover from government records. Once you finish, you get an e-certificate with a QR code. It never needs renewal.
Micro, small or medium: the limits
| Category | Investment up to | Turnover up to |
|---|---|---|
| Micro | ₹2.5 crore | ₹10 crore |
| Small | ₹25 crore | ₹100 crore |
| Medium | ₹125 crore | ₹500 crore |
How the form works
Pick the option for new entrepreneurs who are not yet registered as an MSME. If you hold an older Udyog Aadhaar, use the migration option instead. The form runs in six parts: Aadhaar, PAN, basic details, official address, plant or unit details, and other details. For a proprietorship, the Aadhaar is the owner's own. For a partnership firm, it is the managing partner's. An LLP or company also gives its GSTIN and PAN.
Where most online stores fit
Almost every new online store is a micro enterprise. A home seller with a laptop, a label printer and some stock is far below the micro investment limit. To stay in a category, you must be inside both limits, investment and turnover. Exports are not counted in turnover, so a store that ships abroad keeps more headroom. The limits went up from 1 April 2025. Older guides that quote ₹1 crore and ₹5 crore for micro are out of date.
Reselling versus making your own products
This is the catch for many online sellers. If you buy finished goods and resell them, you are a retail or wholesale trader. The RBI says traders were added as MSMEs only for the limited purpose of priority sector lending. They can still register on the Udyam portal. So a reseller's certificate mainly helps with bank loans. If you make your own products, more of the benefits below can apply. If you sit between the two, check with a CA.
What the certificate unlocks
The Ministry of MSME lists what registration can open up. You become eligible for priority sector lending, a kind of bank credit the RBI sets targets for. You can use schemes such as the Credit Guarantee Scheme, and get an edge in government tenders. You can also sign up on GeM, the government marketplace, and on the Samadhaan portal for late payments. Under the MSMED Act, a buyer's agreed payment period cannot be more than 45 days. If the buyer pays late, interest is due. That matters most if you sell to businesses, not shoppers.
Is it worth it for an online seller?
For most sellers, yes, because it costs nothing and needs no uploads. The everyday wins are small but real. Banks accept an Udyam certificate as one of two proofs of business when a sole proprietor opens a current account. Razorpay lists it among the documents a proprietorship can upload for activation. Register only on the official portal, which warns against fake sites. On The Storemate, every order gets a GST-correct invoice, which helps keep your GST records clean.