MSME classification was revised to benefit smaller businesses. Understand the new criteria based on turnover and investment in plant and machinery.
Micro Enterprises
Micro manufacturing enterprises have investment up to Rs. 1 crore and turnover up to Rs. 5 crores. Micro service enterprises have turnover up to Rs. 2 crores. These are the smallest yet most numerous MSMEs.
Udyam Registration is mandatory for all MSMEs. The registration process is completely free and based on self-declaration. Registration requires only Aadhaar and PAN card details.
Small Enterprises
Small manufacturing enterprises need investment up to Rs. 10 crores and turnover up to Rs. 50 crores. Small service enterprises have turnover limit of Rs. 20 crores.
Small enterprises enjoy priority sector lending benefits. They can access various government schemes and subsidies. Registration on Udyam portal provides enterprise classification automatically.
Medium Enterprises
Medium manufacturing enterprises have investment up to Rs. 50 crores and turnover up to Rs. 250 crores. Medium service enterprises have turnover up to Rs. 100 crores.
Medium enterprises can now sell products on Government e-Marketplace (GeM). They receive preferences in government tenders. The revised classification expanded benefits to more businesses.
Registration Process
Visit udyam.gov.in and click Register. Enter Aadhaar number and PAN details. Fill business information including type, activity, and investment details. Receive Udyam Registration Number instantly.
No documents are required for registration. Self-declaration is sufficient. Existing enterprises with UDYAM, EMI, or SMERA registration must re-register on the new portal.
