In India, MSME registration has been simplified through the introduction of Udyam Registration. Earlier, businesses were registered under Udyog Aadhaar, but now it has been replaced by Udyam Registration as per the guidelines of the Ministry of Micro, Small and Medium Enterprises.
If you are running a small business and still have Udyog Aadhaar, this guide explains who is eligible, required documents, benefits, and why conversion to Udyam is important in 2026.
What is Udyam Registration?
Udyam Registration is a government recognition for Micro, Small and Medium Enterprises (MSMEs) in India. It provides a unique Udyam Registration Number (URN) and an official certificate that helps businesses avail government benefits.
Udyam Registration is mandatory for businesses that want to claim MSME schemes, subsidies, and priority benefits.
Who is Eligible for Udyam Registration?
Any business engaged in manufacturing, trading, or service activities can apply if it falls under MSME classification based on:
Micro Enterprise
- Investment: Up to ₹1 Crore
- Turnover: Up to ₹5 Crore
Small Enterprise
- Investment: Up to ₹10 Crore
- Turnover: Up to ₹50 Crore
Medium Enterprise
- Investment: Up to ₹50 Crore
- Turnover: Up to ₹250 Crore
Eligible Business Types:
- Proprietorship
- Partnership Firm
- LLP
- Private Limited Company
- One Person Company (OPC)
- Hindu Undivided Family (HUF)
- Co-operative Societies
- Trusts
Why Convert Udyog to Udyam in 2026?
Earlier, MSME registration was done under Udyog Aadhaar. Now it has been replaced by Udyam Registration.
Conversion is important because:
- Udyog Aadhaar is no longer valid for new government benefits.
- Banks require Udyam certificate for MSME loans.
- Many government tenders require updated Udyam registration.
- Subsidies and schemes are linked only with Udyam.
Documents Required for Udyam Registration
1. Aadhaar Number
- Proprietor Aadhaar (for proprietorship)
- Authorized signatory Aadhaar (for company/LLP)
2. PAN Card
- Business PAN
- Individual PAN (for proprietorship)
3. GSTIN (if applicable)
4. Business Details
- Business address
- Bank account details
- NIC code of business activity
- Investment & turnover details
Major Benefits of Udyam Registration
1. Easy Bank Loans
Banks provide collateral-free loans under MSME schemes with lower interest rates.
2. Subsidy & Government Schemes
Eligible for schemes from Government of India including:
- Credit Guarantee Scheme
- Technology Upgradation Scheme
- Capital Subsidy Schemes
3. Government Tenders
- Exemption from Earnest Money Deposit (EMD) in many tenders.
Important Points for 2026
- PAN and GST are mandatory for proper classification.
- Turnover data is auto-verified from Income Tax and GST returns.
- Udyam certificate does not require renewal.
- Any changes in business details must be updated online.
Conclusion
Udyam Registration is essential for every small and medium business in India in 2026. If you are still using Udyog Aadhaar, converting to Udyam ensures access to loans, subsidies, and government benefits without interruption.