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MSME Act · Udyam Registration · Composite Criteria

MSME / Udyam Eligibility Checker

Enter your investment and turnover to instantly see whether you are a Micro, Small or Medium enterprise — and whether you qualify for free Udyam registration.

🏭 Investment in plant & machinery / equipment
Investment Original cost of plant, machinery & equipment
📈 Annual turnover
Turnover Gross turnover, exports excluded
Both conditions must be met for a category — the enterprise is classified in the higher bracket triggered by whichever figure (investment or turnover) pushes it up. Export turnover is excluded from the turnover limit.

Your figures vs the MSME limits

CategoryInvestment limitTurnover limitQualifies?
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Disclaimer: Indicative classification per the revised MSME composite criteria (effective from FY 2020-21, notified under the MSMED Act, 2006). Actual eligibility is confirmed on the Udyam portal using PAN, Aadhaar and GST-linked data.

MSME classification — composite criteria

Under the revised criteria, manufacturing and service enterprises share the same limits. An enterprise is classified using a composite criterion of investment in plant & machinery / equipment and annual turnover — both conditions apply, and the higher figure decides the category.

CategoryInvestment (up to)Turnover (up to)
Micro₹1 crore₹5 crore
Small₹10 crore₹50 crore
Medium₹50 crore₹250 crore
Not MSME (large)Above ₹50 croreAbove ₹250 crore
If either investment or turnover crosses the upper limit of a category, the enterprise moves into the next higher category. If both cross the Medium limits, it is no longer an MSME and is treated as a large enterprise.

How Udyam registration works

Udyam registration is the official MSME registration on the Government of India portal. It is completely free, paperless and self-declaration based — investment and turnover are auto-fetched from linked databases.

STEP 1

Aadhaar & PAN

Enter the proprietor's / authorised signatory's Aadhaar and the enterprise PAN — no documents to upload.

STEP 2

Auto data pull

Investment and turnover are auto-fetched from linked PAN, Income Tax and GST (GSTIN) databases.

STEP 3

Self-declaration

Confirm business details, activity (manufacturing / service), address and bank account — then submit.

STEP 4

Udyam certificate

A permanent Udyam Registration Number (URN) and e-certificate are issued — no renewal needed.

Key terms explained

Composite criteria

Classification uses both investment and turnover together. An enterprise is placed in the higher category triggered by either figure — you cannot be Micro on investment if your turnover exceeds ₹5 crore.

Udyam registration

The single, free online MSME registration on udyamregistration.gov.in. It replaces the old Udyog Aadhaar, is permanent, and links PAN, Aadhaar and GST for automatic investment/turnover updates.

Excluded turnover

Export turnover is excluded when computing the turnover limit, so export-heavy units can stay within a lower MSME category even with large total sales.

MSME benefits

Registered MSMEs get collateral-free loans, priority-sector lending, lower interest, 45-day payment protection, subsidies, and preference in government tenders (GeM).

Frequently Asked Questions
How is an MSME classified?

By investment in plant, machinery or equipment and by turnover, whichever puts the enterprise in the higher category. Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore. Small: up to ₹25 crore and ₹100 crore. Medium: up to ₹125 crore and ₹500 crore.

Is export turnover counted?

No. Exports are excluded when computing turnover for classification, which allows an exporting enterprise to stay in a lower category and retain its benefits.

What happens if I cross a threshold?

Classification is updated based on the returns filed. An enterprise that grows into a higher category retains the benefits of its earlier status for a transition period, and one that shrinks is reclassified from the following financial year.

Who can register on Udyam?

Manufacturing and service enterprises, including proprietorships, partnerships, LLPs, companies, societies and trusts, as well as retail and wholesale traders for the limited purpose of priority sector lending.

Is Udyam registration mandatory?

It is not compulsory to run a business, but it is mandatory to claim any MSME benefit — the 45-day payment protection, procurement preference, subsidy schemes and collateral-free credit all require a valid registration.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.