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I. New Classification for MSMEs

As announced as a part of economic stimulus and reforms in response to Covid 19, the Ministry of Micro, Small and Medium Enterprises has modified the classification criteria for MSMEs as follows-

Existing Criteria-





Mfg Enterprises

Investment < INR 25 lacs

Investment < INR 5 cr

Investment < INR 10 cr

Service Enterprises

Investment < INR 10 lacs

Investment < INR 2 cr

Investment < INR 5 cr

Udyam registration and new Classification for MSMEs

New Criteria (Applicable from 1st July, 2020)-





Mfg and Services

Investment < INR 1 cr


Turnover < 5 cr

Investment < INR 10 cr


Turnover < 50 cr

Investment < INR 20 cr


Turnover < 100 cr


Note: All units with GSTIN listed against same PAN shall be collectively treated as one enterprise for the purpose of calculation of limits.

For the purposes of Investments in Plant and Machinery, the calculation will be linked to the previous ITRs filed. If such ITRs are not available, self-declaration to be filed.

For the purpose of Turnover, exports will be excluded from the calculation.


II. Registration

  • Form of registration will be available at the Udyam Registration Portal.
  • Aadhaar number will be required for registration.
  • In the case of company/LLP/Society/Trust, PAN and GSTIN will be required along with Aadhaar.
  • All existing enterprises registered under EM- Part II or UAM to register again on the Udyam Registration portal on or after 1st July 2020.
  • The existing enterprises registered prior to 30th June 2020 will continue to be valid till 31st March 2021.

III. Other Matters

  • An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required.
  • Failure to update such information can result in the suspension of the status of the enterprise.


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Category Corporate Law   Report

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