Glossary · Compliance & Registrations
MSME
Micro, Small and Medium Enterprises — businesses classified by investment in plant and machinery and annual turnover, as per the MSMED Act, 2006.
MSMEs are registered on the Udyam Registration portal. The classification was revised in 2020 to combine investment and turnover criteria: Micro (investment up to ₹1 crore, turnover up to ₹5 crore), Small (investment up to ₹10 crore, turnover up to ₹50 crore), Medium (investment up to ₹50 crore, turnover up to ₹250 crore). Benefits include priority sector lending, lower interest rates, Credit Guarantee Fund, and easier access to government tenders.
Examples
A small bakery with ₹15 lakh invested in equipment and ₹80 lakh annual turnover registers as a Small MSME on the Udyam portal to access government schemes.
Related terms
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