{"id":3210,"date":"2020-07-06T11:05:33","date_gmt":"2020-07-06T11:05:33","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/new-learn?p=2749"},"modified":"2025-06-18T11:17:40","modified_gmt":"2025-06-18T05:47:40","slug":"udyam-registration-msmes-procedure-registration","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/udyam-registration-msmes-procedure-registration\/","title":{"rendered":"Udyam Registration in India: MSME Classification and Registration Procedure"},"content":{"rendered":"

Micro, Small and Medium Enterprises (MSMEs) play a vital role in the Indian economy by generating employment, encouraging innovation, and contributing to exports. To promote and support MSMEs, the Indian government introduced the Udyam Registration<\/strong><\/a> portal, replacing the earlier system of Udyog Aadhaar. This system simplifies the process of registering MSMEs and provides them access to various schemes and benefits.<\/p>\n

This article explains the classification of MSMEs under Udyam Registration and provides a step-by-step guide to the registration process.<\/p>\n

What is Udyam Registration?<\/h2>\n

Udyam Registration is an online registration process which is launched by the Ministry of Micro, Small and Medium Enterprises on July 1, 2020. It is a government-recognized certificate that identifies and categorizes MSMEs in India. This registration is mandatory for businesses that wish to avail themselves of MSME benefits such as financial support, subsidies, collateral-free loans, and priority sector lending.<\/p>\n

Classification of MSMEs<\/h2>\n

The classification of MSMEs is based on two main criteria:<\/p>\n

    \n
  1. Investment in Plant and Machinery or Equipment<\/li>\n
  2. Annual Turnover<\/li>\n<\/ol>\n

    The classification as per the MSME notification dated June 26, 2020, is as follows:<\/p>\n\n\n\n\n\n\n\n
    Type of Enterprise<\/strong><\/td>\nInvestment (in \u20b9)<\/strong><\/td>\nTurnover (in \u20b9)<\/strong><\/td>\n<\/tr>\n<\/thead>\n
    Micro Enterprise<\/td>\nUp to \u20b91 crore<\/td>\nUp to \u20b95 crore<\/td>\n<\/tr>\n
    Small Enterprise<\/td>\nUp to \u20b910 crore<\/td>\nUp to \u20b950 crore<\/td>\n<\/tr>\n
    Medium Enterprise<\/td>\nUp to \u20b950 crore<\/td>\nUp to \u20b9250 crore<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    These limits are applicable for both manufacturing and service enterprises, ensuring a uniform classification system across all sectors\u2026!<\/p>\n

    Benefits of Udyam Registration<\/h2>\n

    Businesses registered under the Udyam scheme enjoy the following benefits:<\/p>\n