2-minute answer
MSME and Udyam Classification Checker — 2026 is organised around the user decision first: identify the applicable law/status, apply it to the facts, work through the examples/checks, and then verify the conclusion against the primary sources.
What this page answers
- Classify an enterprise under current MSME limits
- Classification result
- Current classification
- How This Is Calculated
- Evidence and verification checklist
Practical checklist
- Start with the primary source and effective date.
- Use the page navigation to move from rule to practical implementation.
- Cross-check forms, thresholds and exceptions before filing or acting.
- Retain evidence and source documents for the conclusion reached.
Official sources
Related Finin2min guidance
- Use the contextual links already embedded in this page for related provisions and tools.
MSME classification logic effective 1 April 2025
| Class | Investment ceiling | Turnover ceiling |
|---|---|---|
| Micro | ₹2.5 crore | ₹10 crore |
| Small | ₹25 crore | ₹100 crore |
| Medium | ₹125 crore | ₹500 crore |
The enterprise must fit within both ceilings of a category. Export turnover is treated in accordance with the notified Udyam framework; use portal data and prescribed investment computation rather than a casual balance-sheet approximation.
Example
An enterprise with ₹2 crore qualifying investment but ₹18 crore turnover is not Micro because it breaches the Micro turnover ceiling; it moves to the appropriate higher category if both limits of that category are met.
Primary sources
Classify an enterprise under current MSME limits
Classification result
| Category | Investment / Turnover ceiling |
|---|---|
| Micro | ₹2.5 crore / ₹10 crore |
| Small | ₹25 crore / ₹100 crore |
| Medium | ₹125 crore / ₹500 crore |
How This Is Calculated
MSME classification (micro, small, medium) under the current framework is based on a composite of investment in plant & machinery/equipment AND annual turnover — both criteria are checked together, and a business is classified into the higher category if it exceeds the threshold on either measure, not just one.
Frequently Asked Questions
Evidence and verification checklist
- Confirm the current, in-force text governing MSME and Udyam Classification Checker — 2026 on the official source linked above - the summary on this page is an implementation aid, not a substitute for it.
- Record the exact event/transaction date, since the applicable version of the law, form or threshold can change between the date of the underlying event and today.
- Preserve the primary documents (notices, applications, orders, acknowledgements) that would let a reviewer reconstruct how the facts were classified and what was actually done.
- Check for a State-specific rule, later amendment or binding judicial decision that may modify how this applies on your facts.
Before relying on this page
This page is a structured implementation summary, not the operative legal text. Portal or process acceptance of a filing does not by itself establish legal compliance - the underlying classification, authority, evidence and timeline still have to be independently correct. Where the facts are contested, high-value, or time-barred if delayed, verify the current position with the official source and, where appropriate, a qualified professional before acting.