The Government of India (GOI), through Gazette Notification S.O. 2119 (E) dated June 26, 2020, has notified new criteria for classifying the enterprises as Micro, Small and Medium Enterprises. The new criteria will come into effect from July 01, 2020.

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

1. (i) a Micro Enterprise, where the investment in plant and machinery or equipment does not exceed INR one crore and turnover does not exceed INR five crore;
2. (ii) a Small Enterprise, where the investment in plant and machinery or equipment does not exceed INR ten crore and turnover does not exceed INR fifty crore; and
3. (iii) a Medium Enterprise, where the investment in plant and machinery or equipment does not exceed INR fifty crore and turnover does not exceed INR two hundred and fifty crore.

a) A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.

b) If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category, but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

c) All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the total values will be considered for deciding the category as micro, small or medium enterprise.

d) Information regarding turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.

e) Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.

All enterprises registered till June 30, 2020 will be re-classified as per the gazette notification dated June 26, 2020 and the existing enterprises are required to register again on the Udyam Registration Portal on or after the July 01, 2020. Further, the existing enterprises registered prior to June 30, 2020, shall continue to be valid only for a period up to March 31, 2021 and an enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises is required to register itself under Udyam Registration Portal.

For detailed guidelines on Udyam Registration, visit https://udyamregistration.gov.in

For Enterprises, who have generated Udyam Registration Certificate (URC), as per the new guidelines, click on the tab below to submit the same.