Key Highlights of Update in MSMEs Guidelines 2020
msme registration online.

Key Highlights of Update in MSMEs Guidelines 2020


Micro-Small & Medium Enterprises (MSMEs) contribute largely to the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSME) Act.


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MSME Process

Highlights of Update in MSMEs Guidlines

The Guidlines are effective from the 1st day of July, 2020.

New Trading entity can also register under MSME since “an Enterprise” word is being used now instead of manufacturing or service sector.

Now the MSME Registration will be called “Udyam Registration” and can be done online through the Udyam Registration portal just by self-declaration basis.

New Classification (Based on investment in Plant & Machinery and Turnover):

  • 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
Exports of goods or services or both, shall be excluded while calculating the turnover.

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

All existing enterprises registered under EM-Part-II or UAM shall register again on the Udyam Registration portal.

Turnover has been linked with the GST returns. Investment in Plant & Machinery has been linked with Income Tax Return.

How We Work?

  • Fill The Registration Form
  • Make The Payment
  • Get The Call From Expert
  • Upload Your Documents
  • Udyog Aadhar Application Submitted
  • Congratulations! Your Certificate Will Be Sent To You

Various Schemes for MSME in India

  • Udyog Aadhaar
  • Zero Defect Zero Effect
  • Quality Management Standards and Quality Technology Tools
  • Grievance Monitoring System
  • Incubation
  • Credit Linked Capital Subsidy Scheme
  • Women Entrepreneurship

Desclaimer :

These are based on our understanding and interpretation. Please go through notification issued in official Gazette in this regard on dated 26/06/2020


Most frequent questions and answers

Yes, MSME registration has been replaced with the Udyog Aadhar registration.

Yes, For registration under the Udyog Aadhar scheme, aadhar card is compulsory.

Yes, an existing and new business can apply for MSME/Udyog Aadhar registration.

There is no expiry of the Udyog Aadhar Certificate. 

No, MSME covers only manufacturing and service industries.

No, The MSME/Udyog Aadhar certificate is for a single entity irrespective of multiple branches or plants.

Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, Limited Company, Producer Company, any association of persons, co-operative societies or any other undertaking can obtain MSME registration in India.

Yes, MSME Registration procedure is compulsory.

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