The short version
- Udyam registration is free and does not need renewing.
- It gives access to MSME lending schemes, including CGTMSE credit guarantees.
- Buyers must pay registered micro and small enterprises within 45 days at most.
- Udyam-registered businesses pay the lower government fee for trademarks.
What it is
Udyam registration replaced Udyog Aadhaar in July 2020. It is filed online, based on self-declaration, and linked to your income tax and GST records.
Protection against late payment
Under sections 15 and 16 of the MSMED Act, a buyer must pay a registered micro or small enterprise within the agreed period, and no later than 45 days. Late payments carry compound interest at three times the bank rate set by the RBI.
This guide is general information, not legal or tax advice. Rules and fees change often, so check with an advisor before you file anything.