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Any person who intends to establish a micro, small or medium enterprise may obtain an Udyam Registration online. Udyam registration was first introduced on effect from 1st July 2020.
Classification of MSME
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:
Micro enterprise -
where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees
Small enterprise -
where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees
Medium enterprise -
where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Considerations for an enterprise
The calculation of investment in plant and machinery or equipment is linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) is collectively treated as one enterprise and the turnover and investment figures for all of such entities is seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.
Exports of goods or services or both, is excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
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UDYAM allotted / amended
Post submission of documents with authorities, your Udyam application will be processed by Ministry of Micro, Small Medium Enterprises.