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MSME Registration
MSME Registration In India: Procedure, Documents Required
Recently, the government introduced changes in Micro, Small, and Medium Enterprises (MSME) investment and turnover limits, thus bringing many industries and companies within the MSME purview. The revised classification is effective from 1 April 2025, enhancing business opportunities and flexibility for MSMEs. This article provides the revised MSME classification, MSME eligibility, MSME registration process, documents required for registration and much more.
What is MSME Classification?
Initially, when the government introduced the MSME registration in 2006, the MSME classification was based on the investment criteria in plant and machinery or equipment. Later, the government revised the MSME classification by inserting annual investment and annual criteria. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed.
The Budget 2025 revised the MSME classification. This revised classification is effective 1 April 2025. The previous and the revised limits are provided below:
Criteria
Micro
Small
Medium
Previous Investment & Annual Turnover |
Up to Rs. 1 crore
Up to Rs. 10 crore
Up to Rs. 50 crore |
Revised Investment & Annual Turnover
Up to Rs. 2.5 crore |
Up to Rs. 25 crore
Up to Rs. 25 crore
Previous Turnover Limit |
Up to Rs. 5 crore
Up to Rs. 50 crore |
Up to Rs. 250 crore
Revised Turnover Limit
Up to Rs. 10 crore
Up to Rs.100 crore
Up to Rs. 500 crore
What is MSME Udyam Registration?
MSME registration is also called Udyam registration. The entities that fulfil the MSME classification can apply for MSME registration from the government portal, the Udyam portal. The MSME registration is entirely online and can be obtained from the Udyam registration portal. It is not mandatory for MSMEs to obtain this registration, but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. Over 1 crore registered MSMEs, employing 7.5 crore people, contribute 36% to India's manufacturing and 45% to exports, establishing the country as a global manufacturing hub with their high-quality products.
MSME Registration Eligibility
All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration. Thus, the MSME registration eligibility depends on an entity’s annual turnover and investment. The following entities are eligible for MSME registration: • Individuals, startups, business owners, and entrepreneurs • Private and public limited companies • Sole proprietorship • Partnership firm • Limited Liability Partnerships (LLPs) • Self Help Groups (SHGs) • Co-operative societies • Trusts
PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases since the portal is integrated with Income Tax and GSTIN systems. GST registration is not compulsory for enterprises that do not require a GST registration. However, enterprises that mandatorily need to obtain GST registration under the GST law, must enter their GSTIN for obtaining the MSME Registration or Udyam Registration.
Payment Priority
Business enterprises are required to pay MSMEs within 45 days, as per section 15 of the MSMED Act, 2006, depending on the presence of a written agreement. In case there is no written agreement, payment should be made within 15 days
Silver
₹ 1150*/
No credit card required
Gold
₹ 5150*/
No credit card required
Platinum
₹ 6150*/
No credit card required
Documents Required for MSME Registration
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