MSME & Udyam — the essentials
Clear, factual information about how micro, small and medium enterprises are classified and registered in India.
How enterprises are classified
Micro, small and medium enterprises are classified using a combined criterion of investment in plant, machinery or equipment and annual turnover. The thresholds below reflect the classification used for Udyam Registration. Applicable limits are defined by the Ministry of MSME and may be revised.
| Category | Investment | Turnover |
|---|---|---|
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
Understanding the NIC code
The National Industrial Classification (NIC) code is a standard numeric code that describes what a business actually does. During registration an enterprise selects the NIC code for its main activity and may add codes for additional activities. Choosing the correct code matters because it defines how the enterprise is recorded.
After registration
A successfully registered enterprise receives a permanent Udyam Registration Number and an e-certificate. Registration details are linked to the enterprise's PAN and GSTIN where applicable, and enterprise information should be kept up to date on the official portal.
Information generally required
- Type of organisation (proprietorship, partnership, company, LLP, etc.)
- Name and basic details of the enterprise and its owner
- Nature of activity — manufacturing or services
- Applicable NIC code(s) for the business activity
- Business address and location details
- Bank account details of the enterprise
- Number of persons employed
The definitive list of requirements is published on the official Udyam portal.
Official portal
Registration itself must be completed on the Government of India portal.
Visit Official Udyam Portal