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Udyam registration for government tenders

Why it matters, how to choose activities correctly, and what to update.

4 min read · Last updated: 10 October 2026

Udyam registration is the official identity of an MSME in India. It is free on the official Udyam Registration portal and is done with the Aadhaar of the proprietor, partner or director.

Why it matters for tenders

  • Micro and small enterprises get procurement benefits, such as EMD exemption in many tenders.
  • Some tenders reserve items or give preference to MSEs.
  • GeM uses Udyam details to identify MSE sellers.

Choose activities carefully

Udyam records your business activities through NIC codes. If you supply electrical goods but your Udyam only shows "trading of garments", a buyer may refuse MSE benefits for that item. List every activity you actually do, both manufacturing and services.

Common mistakes

  • Selecting only one NIC code when the business does several things
  • Not updating Udyam after adding new products
  • Name or PAN details that do not match GST records
  • Registering a second Udyam for the same PAN instead of updating the existing one

Keep it updated

Udyam details can be updated on the portal. Review them once a year and whenever you start a new line of business or plan to bid in a new category.

Classification limits and portal steps are revised from time to time. Confirm the current rules on the official Udyam portal.

SoftTender is a private consultancy. We are not affiliated with GeM, CPPP, NSIC or any Government department. Registration on official portals such as GeM is free; we charge only for our assistance service. We do not guarantee that any tender will be awarded.

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