Classification, from 1 April 2025
| Category | Investment in plant, machinery or equipment | Annual turnover |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
An enterprise must be within both limits for a category; crossing either moves it up. Export turnover is left out when calculating turnover.
Why it is worth registering
- Delayed payments. Buyers must pay micro and small suppliers within the agreed period, and never later than 45 days. Late payments carry compound interest at three times the RBI bank rate, and unpaid dues can be referred to the MSME Facilitation Council through MSME Samadhaan.
- Leverage with buyers. Under income-tax rules, buyers who pay micro and small enterprises late cannot deduct the expense until they pay.
- Credit. Collateral-free loans under the credit guarantee scheme, and priority-sector lending.
- Tenders. Benefits such as exemption from earnest money deposits in government purchases.
What is needed
- Aadhaar of the proprietor, managing partner or authorised director
- PAN of the business, and GSTIN where GST applies. Investment and turnover are taken from income-tax and GST records.
Questions we are asked
Is Udyam registration mandatory?
No. It is voluntary, but you need it to claim MSME benefits, including protection against delayed payments.
We registered under the old limits. Do we need to register again?
No. Your classification is updated from income-tax and GST data. We check that it is correct and that your details are current.