Cir No. 25 / M -11 / 20

Cir No. 25 / M -11 / 20 11th July 2020



Dear Members,

Delivering the Economic Package on 26th May 2020, the Honourable Finance Minister Smt Nirmala Sitharaman had announced Revisions in the definition of Micro Small and Medium Enterprises (MSME) based on Composite Criteria of Investments put in and Annual turnover of the Company. Distinction between Manufacturing and Service MSMEs was now removed.

The Ministry of Micro, Small and Medium Enterprises vide its Notification dated 26th June 2020 in the Gazette of India has notified revision in the Criteria for Classification of MSME for Manufacturing and Services Enterprises w.e.f 1st July 2020 for Registration of MSMEs for Udyam Certificates and also notified the need for existing Udhyog Aadhar holders to Re-Register for these Udyam Certificates.

Now an Enterprise shall be classified as a Micro, Small or Medium enterprise on the basis of the following criteria, namely:

  1. A Micro Enterprise, where the Investment in Plant and Machinery or Euipment does not exceed One Crore Rupees and turnover does not exceed Five Crore Rupees;
  2. A 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; and
  3. A 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.
Composite Criteria of Investments & Annual Turnover
Classification Micro Small Medium
Manufacturing & Services Criteria Investment < Rs 1 Cr & Annual Turnover < Rs 5 Crs Investment < Rs 10 Crs & Annual Turnover < Rs 50 Crs Investment < Rs 50 Crs & Annual Turnover < Rs 250 Crs


All existing Enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration Portal on or after the 1st day of July, 2020. All Enterprises registered till 30th June, 2020, shall be re-classified in accordance with the said Notification.

The existing Enterprises registered prior to 30th June, 2020, shall continue to be valid only for a Period up to the 31st March, 2021.

However MSME and its Implementing Agencies are insisting on Re-registration before processing any New Applications for MSME Schemes.

MSME Registration is Free, Paperless and based on Self- declaration

  • MSME Registration process is fully Online, Paperless and based on Self-declaration. No Documents or Proof are required to be uploaded for registering an MSME.
  • Only Aadhaar Number and Existing Udhyog Aadhar Number will be enough for Registration.
  • PAN & GST linked details on Investment and Turnover of Enterprises will be taken automatically from Government Data bases. If no prior details available the Self-declared information will be held valid till 31st March 2021.
  • Having PAN & GST Number is mandatory from 01.04.2021.
  • No Enterprise shall file more than One Udyam Registration. However, any number of activities including Manufacturing or Service or both may be specified or added in One Registration.

You can Re-Register on the revamped Udyog Aadhar site or use below link:

All Existing MSME UAM holders are advised to Re-Register at the earliest.

This is for your kind Information.

Thanking you,

Yours truly,

P. Chandrasekharan Secretary

Kolaso is a design studio founded in London and expanded our services, and offering solutions Worldwide.