The law
MSMED Act 2006, Sec 7
Basis for classifying enterprises as micro, small or mediumSource
MoMSME notification S.O. 2119(E), 26 June 2020
Introduced Udyam Registration from 1 July 2020: online, paperless, self-declaration, no feeSource
MoMSME notification S.O. 1364(E), 21 March 2025 (from 1 April 2025)
Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore; small: ₹25 crore and ₹100 crore; medium: ₹125 crore and ₹500 crore. Composite test; exports excluded from turnoverSource
Udyam notification, investment and turnover computation
Investment is written-down value of plant, machinery or equipment as per the last ITR; all GSTINs under one PAN are aggregatedSource
Udyam notification, one registration rule
No enterprise shall file more than one Udyam Registration; several activities can be listed in oneSource
MSMED Act 2006, Sec 27, read with the Udyam notification
Intentional misrepresentation or suppression of self-declared figures is punishable: fine up to ₹1,000 on first conviction, ₹1,000 to ₹10,000 on later convictionsSource
RBI circular FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21, 21 August 2020
Lenders may obtain the Udyam Registration Certificate for MSME classificationSource
Government fee
Nil. 'Registration Process is totally free. No Costs or Fees are to be paid to anyone.' Source: https://udyamregistration.gov.in/Important.aspx