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MSME classification and Udyam official process

Check the current investment and turnover limits, use the free government registration process and keep your classification evidence organised.

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Current classification limits

From 1 April 2025, both the investment and turnover limits apply:

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

Use the official, free process

Udyam registration is free, online and based on self-declaration, without document uploads. Use the government portal or government single-window systems. Kosha.Services is not the official registration portal.

Aadhaar, PAN and GSTIN requirements depend on entity type and GST applicability. The portal draws investment and turnover information from government records. One enterprise has one registration, which can contain multiple activities. The certificate does not require renewal.

Prepare before entering the portal

  • Check the legal name and entity type against your existing records.
  • Identify the correct authorised person and ensure they control the authentication process.
  • Reconcile activity descriptions, business addresses and classification figures before making declarations.
  • Keep an internal record of the information reviewed and any discrepancy requiring correction.

Work through the registration carefully

Start at the official portal linked below. Follow its identity validation, enterprise-information and declaration steps. Review every field before submission and retain the resulting number and certificate. If validation fails, identify the underlying mismatch rather than repeatedly entering different figures.

Keep authentication codes private. For official assistance, use Champions or the District Industries Centre.

Example: turnover changes the classification

A business with eligible investment of ₹2 crore and relevant turnover of ₹12 crore exceeds the micro turnover limit, even though its investment remains within the micro limit. On those figures it falls within the small thresholds. Confirm the measurement basis and applicable period before drawing a final classification conclusion.

Treat registration and benefits separately

Create a separate eligibility note for any loan, procurement preference, incentive or payment-related claim. A registration certificate should not be used as a blanket statement that every scheme applies to the business. Check the specific scheme, activity, qualifying date and evidence requirements.

When sharing a certificate with a customer, keep a copy of the version shared and its date. This helps both sides reconcile supplier records if the enterprise’s details or classification later change.

Maintain a useful evidence file

  • Registration certificate and number, together with the date of verification.
  • Internal classification calculation and references to the relevant financial records.
  • Activity and address review notes and any correction correspondence.
  • Separate applications, eligibility assessments and decisions for individual benefits.

References and official procedures

Source material consulted 1 October 2026. Check the applicable instrument, period and portal instructions for the actual assignment.

Related starting points

Company law guides

MSME 1 applicability

Assess MSME-1 using the supplier’s micro or small enterprise status and the age of pending payments. The buyer’s own Udyam registration does not answer whether it has a company reporting obligation.

Explore MSME 1 applicability