Udyam Registration: A Step-by-Step Guide for First-Time Applicants
A simple step-by-step guide to Udyam registration on udyamregistration.gov.in — required documents, classification thresholds, and common pitfalls.
BillBabu Team
BillBabu App Team
A simple step-by-step guide to Udyam registration on udyamregistration.gov.in — required documents, classification thresholds, and common pitfalls.
Before You Start: Documents You Need
Udyam registration is paperless and self-declaration based, so you do not need to upload PAN cards or balance sheets at the time of registration. However, you must have your Aadhaar number, PAN number, and GSTIN (if applicable) ready. For proprietors, the Aadhaar belongs to the owner; for partnerships and companies, the Aadhaar of the managing partner or director is used. Your bank account details and previous year turnover and investment figures are also required.
Filling the Registration Form on the Portal
Visit udyamregistration.gov.in and click on "For New Entrepreneurs who are not Registered yet as MSME". Enter your Aadhaar number and validate via OTP — this is the most critical step, so make sure your mobile is linked to Aadhaar. Next, enter your PAN, which the system auto-validates with the Income Tax database. Then fill in the business name, type of organisation, official address, and bank details exactly as they appear in your records.
Understanding Micro, Small, and Medium Thresholds
Classification is based on both investment in plant and machinery (or equipment) and annual turnover. Micro enterprises have investment up to Rs. 2.5 crore and turnover up to Rs. 10 crore. Small enterprises go up to Rs. 25 crore investment and Rs. 100 crore turnover. Medium enterprises extend to Rs. 125 crore investment and Rs. 500 crore turnover. The higher of the two criteria determines your category, so be careful while declaring these numbers.
NIC Codes and Final Submission
You will need to enter National Industrial Classification (NIC) codes for the activities your business performs. You can add multiple NIC codes if you operate in different segments — for example, one for manufacturing and one for trading. After selecting codes, declare the number of employees and submit. The portal issues a permanent Udyam Registration Number and an e-certificate within minutes, and details are automatically pulled from GST and ITR returns in subsequent years.
Put Your Udyam Number to Work with BillBabu
After getting your Udyam certificate, the immediate next step is to display the URN on every invoice. In BillBabu, you can add your Udyam number to your business profile once, and it appears on all invoices, estimates, and purchase orders generated thereafter. This is essential for claiming MSMED Act protections, applying for tenders, and onboarding with corporate buyers who specifically procure from MSMEs.
Built for Indian small businesses. BillBabu is GST-compliant billing software that helps you create invoices, manage estimates, track payments and stay audit-ready — from your phone. Learn more about BillBabu or download the app.
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