The Government has once again revised the MSME threshold limit. Recently, under the newly announced Atmanirbhar Bharat Special economic & comprehensive relief package of ₹20 lakh crores, the Government had revised the definition of MSMEs and had given a new threshold limit for MSMEs.
Now, the Ministry of Micro, Small and Medium Enterprises has again revised the threshold limit for MSMEs.
MSME Threshold Limit raised by the Government
An enterprise shall be classified as a micro, small, or medium enterprise on the basis of the following criteria, namely:
- Micro-enterprise: If the investment in plant and machinery or equipment does not exceed ₹ 1 crore and turnover does not exceed ₹ 5 crores;
- Small enterprise: If the investment in plant and machinery or equipment does not exceed ₹ 10 crores and turnover does not exceed ₹ 50 crores; and
- Medium enterprise: If the investment in plant and machinery or equipment does not exceed ₹ 50 crores and turnover does not exceed ₹ 250 crores.
Also, read the Gazette Notification.
Notably, for medium enterprises, the threshold limit for turnover was previously ₹ 200 crores.
How can I become a micro, small, or medium enterprise (MSMEs)?
Now, any person who wishes to establish micro, small or medium enterprises (MSMEs), must obtain the Udyam Registration online. This is done on the Udyam Registration portal.
- The Udyam MSME Registration shall be based on self-declaration.
- There’s no requirement to upload documents, papers, certificates, or proof.
- Only relevant information about the scope of business shall be required.
- However, calculation of investment in plant and machinery or equipment shall be done by linking of previous years’ ITR filing.
How can I get Udyam MSME Registration?
We shall help you throughout the process of obtaining the Udyam MSME Registration. Our professionals will assist in the entire procedure and formalities for obtaining the Udyam MSME Registration.
If you require any other guidance with respect to Udyam MSME registration, please feel free to contact our business advisors at 8881-069-069.