MSME Registration Eligibility

On eudyogaadhaar we have outlined the eligibility criteria for MSME registration for both service and manufacturing units.

The Union Cabinet revised the definition of MSMEs to support the growth of small trading businesses. Under the new classification, MSMEs are categorized based on investment and turnover.

Previously, manufacturing and service enterprises had separate thresholds for investment and annual turnover. However, this distinction has been removed, ensuring that both sectors now follow the same criteria.

For a Clear understanding, eudyogaadhaar.org provides a detailed table with the latest MSME classifications.

Old Classification of msme

The following criteria have been declared by the Ministry of MSMEs for plant and machinery or equipment.

Microenter Pressure Units: An enterprise with an investment of up to Rs 1 crore with less than 5 crore turnover will now be called a small enterprise unit.

Small Enterprises Units: Enterprises with an investment in investment up to Rs 10 crore with a turnover of less than 50 crores will now be called small enterprise units.

Medium Enterprises Units: Enterprises with investments up to Rs 50 crore with a turnover of less than Rs 250 crore will now be called medium enterprises.

Old Definition

Enterprise	Investment in plant and machinery or equipment	Turnover
Micro Enterprise	Not more than INR 1 Crore	Not more than INR 5 Crore
Small Enterprise	Not more than INR 10 Crore	Not more than INR 50 Crore
Medium Enterprise	Not more than INR 50 Crore	Not more than INR 250 Crore

Finance Minister Nirmala Sitharaman introduced economic measures worth ₹20 lakh crore to support India's economy during the COVID-19 pandemic.

To take advantage of these schemes and benefits offered by the Ministry of MSME, business owners must register their enterprises under MSME. Once registered and issued an MSME certificate, businesses can access several additional benefits, which are outlined below.

Updated MSME Classification

Micro Enterprises:
Investment:Up to ₹2.5 crore
Annual Turnover:Up to ₹10 crore
Small Enterprises:
Investment:Up to ₹25 crore
Annual Turnover:Up to ₹100 crore
Medium Enterprises:
Investment:Up to ₹125 crore
Annual Turnover:Up to ₹500 crore

These updated thresholds aim to accommodate the growth of enterprises and enable more businesses to avail themselves of MSME benefits.

Revised Definition

Enterprise	Investment in plant and machinery or equipment	Turnover
Micro Enterprise	Up to ₹2.5 crore	Up to ₹10 crore
Small Enterprise	Up to ₹25 crore	Up to ₹100 crore
Medium Enterprise	Up to ₹125 crore	Up to ₹500 crore

Benefits of Obtaining an MSME Certificate

Businesses registered under MSME enjoy several advantages and government incentives. Some of the key benefits include:

Subsidized Interest Rates on Bank Loans – MSME-certified businesses can avail of lower interest rates on loans
Collateral-Free Loans – Businesses can access loans without needing to pledge collateral
Protection Against Delayed Payments – MSME businesses receive legal protection if buyers delay payments for supplied goods or services
Exclusive Reservations for Manufacturing & Production – Special government policies support MSMEs in these sectors
Easier Licensing & Approvals – MSME registration simplifies the process of obtaining licenses and approvals
Eligibility for Credit-Linked Capital Subsidy Scheme (CLCSS) – MSMEs can benefit from financial aid under this scheme
Special Consideration in International Trade Fairs – MSMEs receive priority and incentives for global exhibitions.
Exemption from Government Security Deposits (EMD) – Useful when bidding for government tenders.
Electricity Bill Concession – MSMEs can avail of discounts on their electricity charges
Stamp Duty & Registration Fee Exemption – Helps reduce the cost of property and legal registrations
ISO Certification Fee Reimbursement – Financial support is provided to obtain ISO certification
Tax Exemptions – Certain direct tax benefits are available for MSMEs
NSIC Performance & Credit Rating Fee Subsidy – MSMEs can receive financial support for credit rating services
Patent & Barcode Registration Subsidy – Assistance is available for patenting innovations and barcode registration
Industrial Promotion Subsidy (IPS) Eligibility – MSMEs can benefit from government schemes aimed at industrial growth

These benefits provide financial relief, encourage growth, and improve business sustainability for MSMEs in India.

MSME registration process on eudyogaadhaar.org

Step 1: Visit the Website

Go to the Msme Registration Portal to begin the registration process.

Step 2: Fill Out the Online Application Form

Enter the required details in the online form, including

Applicant’s Full Name
Mobile Number
Email Address
Complete Business Address (State, District, and PIN Code)
Business Name

Step 3: Verification and Submission

Review all the details carefully before applying. Once verified, click on the "Submit" button to proceed.

Step 4: Payment and OTP Verification

After applying, make the online payment through credit/debit card, net banking, or UPI. Once the payment is successful, an executive will contact you for OTP verification via your registered mobile number or email.

Step 5: Receive Udyam Registration Number and Download the Certificate

After successful verification, you will be issued a Udyam Registration Number (URN), which serves as official proof of MSME registration. You can then download the Udyam Registration Certificate from the website. This certificate is essential for MSMEs to access government schemes and benefits.

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