Can a Trust, Society or Section 8 Company Register Under Udyam?

Last Updated on September 24, 2026

Yes, a Trust or Society can register under Udyam if it qualifies as an MSME enterprise. The official Udyam portal specifically provides for a Society or Trust to register, with the organisation or authorised signatory providing PAN and GSTIN, where applicable, along with Aadhaar details. A Section 8 Company can similarly be considered based on its enterprise activity and applicable MSME classification requirements.

The Udyam Registration is the official process adopted by the Government of India for the determination of MSMEs (Micro, Small, and Medium Enterprises) that qualify. It offers an easy online registration for qualified MSMEs, where they get their Udyam Registration Number and Certificate. MSMEs are of great significance in India’s business environment because of their contributions in providing employment, entrepreneurship, manufacturing, and economic activity in various industries.

The process of Udyam Registration is mainly through self-certification; the businesses will be required to provide pertinent information like PAN, Aadhaar number of the authorised individual, GST number (if any), business operation, investment, and turnover. After registration, the firms will be able to use the Udyam Registration Number to prove their MSME status officially.

Through registration, businesses could benefit from various government schemes, financing, purchasing opportunities, subsidies, and other advantages available to MSMEs under different schemes. Notably, eligibility is determined according to the relevant MSME policy and not the legal status of an organisation. Therefore, enterprises as well as eligible Trusts, Societies, and Section 8 Companies need to take note of this.

What is an Udyam Registration?

Udyam Registration is the Government of India’s official registration system for Micro, Small, and Medium Enterprises (MSME). It gives qualifying businesses a permanent registration number and an online Udyam Registration Certificate.

1. Official MSME recognition: It formally certifies a qualified business as a Micro, Small or Medium Enterprise based on the stipulated investment and turnover criteria.
2. Online process: Registration is conducted using the official Udyam Registration portal and is mostly based on self-declaration.
3. Unique identification: Following successful registration, the enterprise is assigned a unique Udyam Registration Number (URN).
4. Eligibility: Various types of businesses can register as long as they meet the applicable MSME standards and engage in eligible activities.
5. Required information: The registration normally includes details such as the authorised person’s PAN, Aadhaar number, GST information (if applicable), business activity, bank details, investment and turnover.
6. Benefits access: Udyam Registration can assist qualifying MSMEs in accessing applicable government schemes, credit support, procurement perks, and other facilities, according to the terms and circumstances of each plan.

Classification of MSME

The entity should be qualified based on investment and turnover limits, revised effective 1 April 2025 (Notification S.O. 1364(E)):

• Micro: investment up to ₹2.5 crore, turnover up to ₹10 crore
• Small: investment up to ₹25 crore, turnover up to ₹100 crore
• Medium: investment up to ₹125 crore, turnover up to ₹500 crore

Classification uses a composite criterion: both investment and turnover are checked, and crossing either ceiling moves the entity up to the next category. To move back down to a lower category, both figures must fall below the lower category’s limits.”

Note: Since 2020, MSME classification applies equally to manufacturing and service activities; there’s no separate, stricter test for service-based organisations, which is directly relevant for trusts and Section 8 companies running educational, healthcare, or training services rather than manufacturing goods.

Can a Trust, Society or a Section 8 Company be Eligible to Register Under Udyam?

Yes. Udyam Registration can be availed by a Trust, Society or Section 8 Company, depending upon its qualification as an MSME and involvement in a suitable economic activity. Udyam portal is specifically meant for the registration of business, society, and trust organisations.

1. Trust: A trust can be granted the Udyam Registration, as long as it conducts an eligible enterprise or business and fits into the relevant classification of the MSME. The Udyam portal specifically includes trusts in the list of registrations possible.
2. Societies: Society which is engaged in an eligible economic activity can also register itself through the process of Udyam Registration.
3. Section 8 Companies: Section 8 companies do not have any automatic exemption on the basis of their charitable or non-profit motive. They might become eligible for such registration by conducting an eligible business or service activity under the MSME scheme.
4. Classification of MSME: The firm should be qualified based on the investment and turnover limitations set by the authority.
5. PAN, GSTIN, and Aadhaar: The Udyam portal asks for the PAN, if available, and the GSTIN number of the trust, society, or the company, along with the Aadhaar number of the authorised signatory.
6. Important point: Just the registration of the trust, society, or Section 8 company does not make the business eligible for being an MSME. The entity should be classified as an eligible enterprise based on the MSME classification.
7. Benefits: Eligible entities with Udyam Registration will be able to access the relevant incentives and schemes for MSMEs, according to the conditions of each scheme.

Why This Differs From “NGOs Aren’t Eligible”

You may come across guidance stating that NGOs, trusts, and societies don’t qualify for Udyam registration because they lack a profit motive. This is only accurate for organisations with no genuine business or service activity a purely charitable trust distributing grants, for instance. The distinction that matters isn’t the organisation’s legal form or its non-profit status, but whether it’s actually engaged in an eligible manufacturing or service activity as defined under MSME classification. A Section 8 company running a paid vocational training program, or a trust operating a diagnostic lab on a fee basis, is engaged in exactly this kind of eligible activity even though profit isn’t its ultimate purpose.

Documentation Required for a Trust, Society and Section 8 Company to Register Under Udyam

The documentation for Udyam Registration of Trust, Society, and Section 8 Company depends on the structure of the entity and the nature of its business activity. This could include:

1. PAN Card: The PAN of the Trust, Society, and Section 8 Company will be needed for identification and verification purposes.
2. Aadhaar Details: Authentication on the Udyam portal may require the proprietor, partner, or authorised signatory/person in charge of the firm to provide Aadhaar details.
3. Registration/Certificate of Incorporation: The registration or incorporation certificate of the trust deed, society, and Section 8 company will need to be kept.
4. Constitutional Documents: The Trust Deed, Society Bye-Laws/Rules/Memorandum, and the Memorandum and Articles of Association of a Section 8 Company will need to be considered while creating the entity’s structure and business activity.
5. GSTIN: Information relating to GST registration must be given where applicable.
6. Bank Details: The organisation’s bank account number and IFSC code must be known.
7. Details of the Business Activity: Information related to the major business activity, type of services/business, NIC code, and inception date must be given.
8. Investment and Turnover Details: MSME category may require details regarding plant & machinery/equipment investment and turnover.
9. Authorising Details: Information about the authorising individual responsible for the submission of the Udyam application must be known.

For a complete, general checklist covering every document type across all applicant categories, see our guide on documents required for MSME/Udyam registration.

Process of Udyam Registration for a Trust, Society and Section 8 Company

1. Check Eligibility: First, make sure that the Trust, Society, or Section 8 Company indulges in an eligible economic activity and satisfies the MSME investment and turnover criteria.
2. Collect Documents: Collect PAN card details, registration/ incorporation documents, Aadhaar details of the authorised person, GSTIN (if available), bank details, and the activities carried out by the organisation.
3. Visit the Udyam portal and register using the Udyam Registration portal. The registration process is completely online and does not require an application to be submitted physically.
4. Enter Aadhaar details: As per requirement, enter the Aadhaar details and name of the authorised person and complete the Aadhaar authentication process.
5. Enter organisation details: Select the kind of organisation and enter the details like the name of the Trust, Society, or Section 8 Company, PAN, address, contact details, and the date of incorporation.
6. Provide information about business: Provide information regarding the main business of the organisation, any other business it indulges in, NIC code, and details about the nature of goods or services provided.
7. Enter Investment and Turnover Details: Provide all the necessary investment and turnover details required to classify the MSME category.
8. Provide Banking Information: Provide all the banking details of the organisation, including the bank account number and IFSC.
9. Submit the application: Carefully submit the application after verifying all the details.
10. Get Udyam Registration Number: After the successful registration, the organisation is provided with a unique URN.
11. Get the certificate: The registered organisation can download the certificate online and use it as proof of registration.
12. Update Udyam Details: After getting registered, the organisation needs to keep their Udyam details updated.

The portal automatically recalculates classification each year using the entity’s PAN-linked ITR and GST data; there’s no need to file a fresh application for reclassification, but ITR filing and GST filings must stay current for this to work correctly. Failing to keep information updated can result in the Udyam status being marked inactive.

Benefits of Udyam Registration for a Society, Trust and Section 8 Company

1. Recognition of MSME: The MSME is officially recognised by the Udyam Registration in case of a trust, society, or Section 8 company which fulfils the relevant MSME criteria.
2. Eligibility for Government Schemes: The registered entity may be eligible to apply for the various government schemes intended for MSMEs, based on specific conditions of the scheme.
3. Facilitating Financing: This MSME registration helps in applying for loans and other financial services, but the eligibility of the entity is still decided by the bank.
4. Credit Related Advantages: The registered companies that qualify for certain criteria can avail credit and guarantee schemes intended for MSMEs.
5. Late Payment Management: Qualified micro and small enterprises benefit from the MSMED Act’s legal framework for delayed payments. Separately, under Section 43B(h) of the Income Tax Act, a buyer who fails to pay a registered Micro or Small supplier within the prescribed timeline (45 days where there’s a written agreement) loses the income tax deduction for that expense entirely, giving Udyam-registered trusts, societies, and Section 8 companies real financial leverage when dealing with corporate buyers on payment terms.
6. Participation in Tenders/Procurements: Firms registered under Udyam are eligible to utilise certain provisions for MSMEs in government procurements/tendering processes.
7. Boosting Credibility: MSME registration lends legitimacy and credibility to the organisation, which is helpful while dealing with institutions, vendors, etc.
8. Access to Relevant Subsidies: The registered firms can avail various subsidy and incentive schemes for MSMEs as per the scheme and its eligibility criteria.

Conclusion

Udyam Registration is available for qualified companies having MSME recognition and also helps them in accessing various government schemes, funding, procurement opportunities, and other related advantages. Whether trusts, societies, or Section 8 companies qualify for Udyam Registration needs to be identified based on their operations and the MSME criteria. It will aid in achieving proper compliance by registering through accurate information and updating facts from time to time. The process of registration can become more streamlined with professional assistance, which enables them to concentrate on their core business.

If you’re also weighing this question for a different entity type, see our companion guide on whether a Private Limited Company can register under Udyam/MSME.

Frequently Asked Questions

1. Is it possible to get Udyam Registration from a Trust?

Yes, a Trust can get Udyam Registration if it is doing the economic activity of choice and also satisfies the MSME requirements. The information needed on the Udyam portal includes the PAN number, registration number, Aadhaar of the authorised person, and all other information required. The eligibility of a Trust will depend on the activity it carries out.

2. Is it possible for a Society to get Udyam Registration?

Yes, a Society that does the appropriate economic activity can obtain Udyam Registration. The Society has to meet the MSME classification requirements and submit all the information needed for the organisation and also its activities. Udyam Registration will not necessarily mean that the Society becomes an MSME.

3. Is it possible for a Section 8 Company to get Udyam Registration?

A Section 8 Company can register under Udyam if it is involved in a qualifying activity and fulfils the MSME requirements. The non-profit nature of the company will not determine its eligibility. During registration, information has to be given by the organisation, including the PAN, authorised person and activity carried out.

4. What are the documents needed for Udyam Registration?

Generally speaking, documents related to the PAN and Aadhaar of the authorised individual, registration or incorporation documents, GSTIN (if applicable), bank documents, and documents about the activities of the organisation need to be submitted. Investment and turnover documents can also prove helpful to classify the business into the MSME category.

5. What are the benefits of Udyam Registration?

If a trust, society, or Section 8 company meets the eligibility criteria, then an official MSME status and access to government schemes, along with credit and procurement facilities for MSMEs, become available. Micro and small enterprises can also seek protection under the MSMED Act for delayed payment as well.

6. Does a purely charitable trust with no business activity qualify for Udyam registration?

No. Udyam eligibility depends on whether the organisation is engaged in an eligible manufacturing or service activity, not on its non-profit status. A trust that only distributes grants or runs purely charitable programs without any commercial or fee-based activity generally won’t qualify, but a trust or Section 8 company running a paid service (education, healthcare, training) on a genuine business basis can.

7. Do Small and Medium classified trusts or Section 8 companies get the same benefits as Micro ones?

Most core benefits, government scheme eligibility, and procurement preferences extend across all three categories, but some specific protections, particularly the delayed-payment provisions under Section 43B(h) of the Income Tax Act and the MSMED Act, apply only to Micro and Small enterprises, not Medium.

8. Does Udyam registration need to be renewed?

No, registration itself is permanent and doesn’t expire. However, the entity must keep its Aadhaar, PAN, and GST-linked information current, since the portal automatically recalculates classification annually from that data.

Simplify Your MSME Compliance with Kanakkupillai

Managing MSME registration and compliance requirements might become a tedious task for you when you have to manage your own business at the same time. KANAKKUPILLAI may offer help with Udyam Registration, modifications, paperwork, and many more MSME compliance requirements. We will make sure that everything from assessing the eligibility criteria to completing all the formalities is done in a systematic and hassle-free way. KANAKKUPILLAI can offer you practical assistance for your MSME compliance requirements.