Udyam (MSME) registration: a free guide for small businesses in Bihar
Udyam registration is free, online and takes minutes with Aadhaar and PAN. Here is who can register, what it gives you, and how to avoid websites that charge for it.
Bihar Directory Team · · 2 min read
Udyam registration is the government's official MSME registration. It is free, done online, and gives a small business an identity that banks and government schemes recognise.
Who can register
Any business that makes goods or provides services — a kirana store, a coaching centre, a repair shop, a small factory — can register as a Micro, Small or Medium Enterprise. Since April 2025 the classification is:
- Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore
- Small: investment up to ₹25 crore and turnover up to ₹100 crore
- Medium: investment up to ₹125 crore and turnover up to ₹500 crore
Most shops and service businesses in Bihar are Micro. (Trading businesses can also register; some benefits, such as priority lending, apply to them too.)
What you need
- Aadhaar number of the proprietor (or partner/director), linked to a mobile for OTP
- PAN of the business or proprietor
- GSTIN, if you have one
- Bank account number and IFSC
- Basic details: business address, activity, number of employees, investment and turnover
How to register
- Go to the official portal udyamregistration.gov.in.
- Choose the option for new entrepreneurs not yet registered.
- Verify Aadhaar with OTP, then PAN.
- Fill in the business details and choose your activity (NIC code) — pick the one that best describes what you actually do.
- Submit. The Udyam certificate is issued online.
There is no fee. Many look-alike websites charge ₹500–₹2,000 for the same form — avoid them.
What it gives you
- Easier access to bank loans for MSMEs, including collateral-free credit guarantee schemes
- Eligibility for many central and state schemes, and for Government e-Marketplace (GeM) seller registration
- Protection on delayed payments: buyers are expected to pay registered micro and small suppliers within the agreed time, up to 45 days
- A recognised identity that helps with tenders and business accounts
Keep it updated
The classification is updated from your income tax and GST data. If your address, activity or bank changes, update the registration on the same portal.
Related guides
Planning a loan? Read about Mudra loans (Hindi). Selling goods above the GST limit? See our GST registration guide.
Frequently asked questions
Is Udyam registration free?
Yes. Registration on the official portal udyamregistration.gov.in is completely free. Websites that charge a fee are private agents.
Can a kirana or retail shop get Udyam registration?
Yes, retail and wholesale traders can register on the Udyam portal, and several benefits such as priority sector lending apply to them.
Does Udyam registration need renewal?
No. It does not expire. Classification is updated automatically from income tax and GST data, but you should update changed details yourself.
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