MSME Classification (Revised 2020)

Category	Investment in Plant & Machinery	Annual Turnover
Micro Enterprise	Up to ₹1 crore	Up to ₹5 crore
Small Enterprise	Up to ₹10 crore	Up to ₹50 crore
Medium Enterprise	Up to ₹50 crore	Up to ₹250 crore

Key Benefits of MSME / Udyam Registration

• Priority Sector Lending: Banks must lend a portion of their credit to MSMEs — easier loan approvals
• Collateral-free loans: CGTMSE scheme provides credit guarantee for loans up to ₹2 crore
• Lower interest rates: Priority sector loans typically at lower rates than standard business loans
• Government tender preference: MSMEs get price preference and exemption from tender deposits
• MSMED Act protection: Buyers must pay within 45 days — delays attract 3x bank rate compound interest
• Electricity bill concession: Many states offer reduced electricity tariffs for registered MSMEs
• ISO certification subsidy: Government reimburses ISO certification fees for MSMEs
• Patent and trademark fee rebate: 50% rebate on patent/trademark filing fees

Documents Required for Udyam Registration

• Aadhaar card of the proprietor / managing partner / director (mandatory)
• PAN card of the business entity
• GSTIN (if registered under GST)
• Bank account details
• NIC Activity Code (business activity code) — we help identify the correct code

MSME FAQ

Is Udyam registration free?

Yes, the government Udyam portal (udyamregistration.gov.in) is completely free. Professional fees, if any, are only for assistance with the registration process.

Does my old Udyog Aadhaar registration need to be migrated?

Yes. All Udyog Aadhaar registrations must be migrated to the new Udyam portal. Old UAM certificates are no longer valid for government schemes and bank benefits.