Who Is Eligible For Udyog Aadhar?

Udyog Aadhar was a registration provided to micro, small, and medium-sized businesses in India under the Micro, Small, and Medium Enterprise Development Act, 2006 (MSMED). Since July 2020, Udyog Aadhaar registration has become Udyam registration. Udyam Registration is more accessible than registration for Udyog Aadhaar.

Udyog Aadhar Registration for MSME

The Ministry of MSME has notified a one-page Udyog Aadhar Memorandum (UAM) through the Gazette of India on 18.09.2015 as part of an initiative to ease the Registration of MSMEs. The process for obtaining MSME registration has been simplified by introducing the Udyog Aadhar for MSME in India. Before the Udyog Aadhaar, two filings, namely Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-II), had to be filed to obtain MSME or SSI Registration. With Udyog Aadhaar, obtaining SSI or MSME registration has been drastically simplified. In addition to simplifying the registration process, the MSME registration form has also been simplified. Udyog Aadhaar registration form was made in a self-declaration format under which the MSME self-certifies its existence, bank account details, promoter/owners’ Aadhar, and other essential information required. Based on the simple form submitted, the business would be issued online, at a minimum, a unique identifier or Udyog Aadhaar, making the unit formally registered as an SSI or MSME. Click here to learn more about MSME Clarification on New Udyam Registration

Udyam Registration

Udyam registration is the new process for registering MSMEs launched by the Ministry of Micro, Small, and Medium Enterprises on July 1, 2020. To make registration with the government portal easier for MSMEs, the government of India introduced Udyam registration in place of Udyog Aadhaar.

Who Is Eligible For Udyog Aadhar?

Anyone wishing to establish a micro, small, or medium enterprise can apply for Udyam Registration.

Partnership Firm
One Person Company
Proprietorships
Private Limited Company
Limited Company
Producer Company
Limited Liability Partnership
any association of persons
co-operative societies
Hindu Undivided Family (HUF)

Note: As per the Revised Guidelines for MSME, retail and wholesale trades will be allowed to register on Udyam Registration Portal.

Eligibility Criteria for Udyog Aadhar/Udyam Registration - Revised MSME Definition

A revision to the MSME definition was announced in the Atmnirbhar Bharat package on May 13, 2020, to bring more units under the purview of the schemes. According to this scheme, the criteria for classifying MSME are investment and turnover. The limit has been revised upwards. The difference between the service and the manufacturing sector has also been eliminated.

Who Is Eligible For Udyog Aadhar?

Composite Criteria: Investment in Plant or Machinery and Turnover
Sl.No	Type of Enterprises	Investment	Turnover
1	Micro enterprises	Less than Rs.1 Crore	Less than Rs.5 Crore
2	Small enterprises	Less than Rs.10 Crore	Less than Rs.50 Crore
3	Medium enterprises	Less than Rs.20 Crore	Less than Rs.100 Crore

IndiaFilings can help you get UDYAM/ Udyog Aadhar registration.

Revised Classification Criteria for MSMEs

In the Union Budget 2025, the government announced a significant revision in the classification criteria for Micro, Small, and Medium Enterprises (MSMEs). It is stated that the investment limit for MSME classification has been increased by 2.5 times, while turnover limits have been doubled. It is expected to boost the confidence of MSMEs, fostering growth and generating employment opportunities.

In the table below, we have provided the revised classification criteria made in Union Budget 2025,

Enterprise Category	Current Investment Limit	Revised Investment Limit	Current Turnover Limit	Revised Turnover Limit
Micro Enterprise	₹1 crore	₹2.5 crore	₹5 crore	₹10 crore
Small Enterprise	₹10 crore	₹25 crore	₹50 crore	₹100 crore
Medium Enterprise	₹50 crore	₹125 crore	₹250 crore	₹500 crore

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Frequently Asked Questions

Common questions about Udyam Registration for MSMEs: Eligibility Criteria 2023.

Udyog Aadhaar (now replaced by Udyam Registration) was a registration provided by the government of India to micro, small, and medium-sized enterprises (MSMEs) under the MSME Development Act, 2006. It simplifies the registration process for MSMEs by offering a unique identification number through a self-declaration form.

As per the revised guidelines, any individual or entity intending to establish a micro, small, or medium enterprise can apply for Udyam Registration. This includes proprietorships, partnerships, companies, producer companies, limited liability partnerships, cooperative societies, Hindu Undivided Families (HUFs), and associations of persons.

The revised criteria for classifying MSMEs are based on investment in plant and machinery or equipment and turnover. The limits for micro, small, and medium enterprises have been increased in terms of both investment and turnover.

According to the revised criteria, a micro enterprise is one where the investment in plant and machinery or equipment does not exceed Rs. 2.5 crore, and the annual turnover does not exceed Rs. 10 crore.

A small enterprise is defined as one where the investment in plant and machinery or equipment does not exceed Rs. 25 crore, and the annual turnover does not exceed Rs. 100 crore.

A medium enterprise is one where the investment in plant and machinery or equipment does not exceed Rs. 125 crore, and the annual turnover does not exceed Rs. 500 crore.

Yes, Udyam Registration is mandatory for all MSMEs to avail various government schemes, subsidies, and benefits specifically designed for the MSME sector.

Udyam Registration provides MSMEs with a unique identification number, making them officially registered with the government. This allows them to access various government schemes, subsidies, and benefits, as well as participate in public procurement processes.

Udyam Registration can be applied for online through the Ministry of Micro, Small and Medium Enterprises' Udyam Registration portal. The application process involves filling out a self-declaration form with relevant details about the enterprise.

Yes, as per the revised guidelines, retail and wholesale trades are now allowed to register on the Udyam Registration portal.