MSME / Udyam
Eligibility Checker
Micro · Small · Medium — Budget 2025 New Limits

Budget 2025 (Finance Act) revised MSME classification limits effective April 1, 2025 (S.O. 1364(E) dated March 21, 2025): Micro Enterprise — Investment ≤ ₹2.5 crore AND Turnover ≤ ₹10 crore (previously ₹1Cr / ₹5Cr). Small Enterprise — Investment ≤ ₹25 crore AND Turnover ≤ ₹100 crore (previously ₹10Cr / ₹50Cr). Medium Enterprise — Investment ≤ ₹125 crore AND Turnover ≤ ₹500 crore (previously ₹50Cr / ₹250Cr). Investment limits raised 2.5× and turnover limits doubled. Export turnover excluded from calculation. An estimated 7.5 lakh additional businesses now qualify as MSME under these revised limits.

Yes — since July 2020, Udyam Registration is open to manufacturing, service, and trading enterprises under identical classification criteria. Before July 2020, the old Udyog Aadhaar system primarily covered manufacturing. Now, retail traders, wholesale dealers, IT companies, restaurants, logistics providers, consultants, and all service businesses can register. The NIC code (National Industrial Classification) covers all business types. Trading companies previously had a separate scheme — that's been merged into Udyam for simplicity.

Section 43B(h) was inserted into the Income Tax Act by Finance Act 2023, effective FY 2023-24. It provides that any payment owed to a Micro or Small Enterprise must be paid within the time limits of the MSMED Act (15 days where no agreement, or 45 days where written agreement exists). If payment is delayed beyond this: (1) The buyer cannot claim the amount as a deductible business expense, (2) The buyer pays income tax on higher profits. In practice, this means a company paying a registered Micro/Small MSME after 45 days effectively loses the tax deduction — a powerful commercial incentive to pay on time. Important: Medium enterprises are excluded from Section 43B(h) — this benefit applies only to Micro and Small. Udyam certificate with Micro/Small classification is needed to enforce this — buyers often ask for the certificate before agreeing to the 45-day clause.

No — Udyam Registration certificate is lifetime valid with no annual renewal. However, you must update your Udyam registration if: (1) Business turnover or investment crosses your current category limit, (2) Business name, address, or constitution changes, (3) GSTIN changes, (4) You want to add new business activities. The Udyam portal auto-updates classification based on ITR data filed annually — so if your turnover grows from Micro to Small range, the portal may auto-upgrade your classification. Review your Udyam certificate each year after ITR filing to ensure category is accurate. Under Budget 2025 revised limits, many businesses should re-check — they may have been downgraded to a lower (more beneficial) category.

Yes — Private Limited Companies, LLPs, OPCs, Partnership Firms, HUFs, Co-operatives, Trusts, and Societies can all register as MSME on the Udyam portal. For companies/LLPs: registration is done using the Aadhaar of the authorised signatory (director/designated partner) and PAN of the company. The company's investment and turnover (from ITR) are used for classification. A Private Limited company with ₹2 crore investment and ₹8 crore turnover qualifies as Micro Enterprise under Budget 2025 limits and gets full Section 43B(h) protection. TAXAJ handles Udyam registration for all entity types including complex cases like group companies with multiple units.