What does your business do?
Manufacturing or processing goods.
Your figures from your latest income-tax return
Use the figures from your income-tax return and GST filings.
Written down value from your income-tax return. Leave out land, buildings, furniture and fittings.
All sales, exports included. Count every GSTIN on your PAN together.
Leave empty if you do not export.
Tells you whether your category will change.
Enter your investment and turnover to see your category.
The limits, from 1 April 2025
| Category | Plant and machinery or equipment | Turnover |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
Notification S.O. 1364(E) of 21 March 2025, which amended the limits in S.O. 2119(E) of 26 June 2020 under section 7 of the MSMED Act 2006. A business must be within both limits of a category.
How the figures are counted
- Investment is the written down value of plant and machinery or equipment at the end of the financial year, as in your income-tax return. It covers every tangible asset except land and buildings, furniture and fittings.
- The cost of pollution control, research and development and industrial safety devices is left out of investment.
- A new business without a return yet uses the purchase value of its machinery, bought new or second hand, without GST, on its own declaration.
- Turnover leaves out exports of goods and services. All GSTINs on the same PAN count as one business: their investment and turnover are added together.
- The Udyam portal takes these figures from your income-tax returns and GST filings and updates your category itself. The year it reads can lag behind the current one.
- The limits are ceilings: a figure equal to the limit is still inside it.
When your category changes
- If either figure crosses the limit of your category, you move up. For three years from that move you keep the non-tax benefits of your old category, such as the delayed-payment and tender benefits (S.O. 4926(E) of 18 October 2022).
- You move down only when both figures fall within the lower category, and only from 1 April of the next financial year. Until then you stay in your present category.
- One business can hold only one Udyam registration, and it must keep its details up to date. Check your certificate after you file your returns.
What changed on 1 April 2025
The limits were raised: investment by 2.5 times and turnover by 2 times. Some businesses that were small are now micro, and some that were medium are now small.
| Category | Until 31 March 2025 | From 1 April 2025 |
|---|---|---|
| Micro | ₹1 crore and ₹5 crore | ₹2.5 crore and ₹10 crore |
| Small | ₹10 crore and ₹50 crore | ₹25 crore and ₹100 crore |
| Medium | ₹50 crore and ₹250 crore | ₹125 crore and ₹500 crore |
Questions businesses ask
What are the MSME limits in 2025?
From 1 April 2025 a micro enterprise has up to ₹2.5 crore in plant and machinery or equipment and up to ₹10 crore turnover; a small enterprise up to ₹25 crore and ₹100 crore; a medium enterprise up to ₹125 crore and ₹500 crore. The limits were set by notification S.O. 1364(E) of 21 March 2025.
Do both investment and turnover have to be within the limit?
Yes. A business is in a category only if both figures are within its limits. If either one is higher, the business belongs to the next category up.
Are exports counted in turnover?
No. Exports of goods or services are left out of turnover for MSME classification, so an exporter can stay micro or small with a higher total turnover.
Can traders register as MSMEs?
Retail and wholesale traders can register on Udyam, but the MSME Ministry limits their benefits to priority sector lending (Office Memorandum of 2 July 2021). They should not rely on the delayed-payment protection of the MSMED Act or the other MSME benefits.
Is Udyam registration free?
Yes. Registration on the government portal udyamregistration.gov.in is free and paperless. You need your Aadhaar; companies and firms also give their PAN and GSTIN. No private agency is authorised to register you, so sites that charge a fee are not the government.
Does a medium enterprise get the 45-day payment protection?
No. Sections 15 and 16 of the MSMED Act protect micro and small suppliers only. Medium enterprises still count as MSMEs for priority sector lending and many government schemes.
How do I check what a late buyer owes me?
If you are a micro or small manufacturer or service provider, use our free MSME payment calculator. It works out the due date and the interest at three times the RBI Bank Rate and can write a polite reminder letter.
Are my figures saved?
No. The checker runs in your browser and keeps your figures only in this tab until you close it.
This checker applies the classification limits under the MSMED Act 2006, as amended, to the figures you enter. The Udyam portal decides your category from your returns; this is a guide, not legal or tax advice.