FreeComplianceMSME classification: micro, small and medium enterprise limits
Enterprises are classified as micro, small or medium based on investment in plant and machinery or equipment and turnover. Both tests must be met. The limits were revised upward with effect from 1 April 2025.
Current limits
| Category | Investment up to | Turnover up to |
|---|---|---|
| Micro | ₹2.5 crore | ₹10 crore |
| Small | ₹25 crore | ₹100 crore |
| Medium | ₹125 crore | ₹500 crore |
Export turnover is excluded when calculating turnover for classification.
Moving between categories
If an enterprise crosses the limit, it moves up a category from the next financial year. If it falls below, it moves down only after a full year below the limit. Classification is updated from income-tax and GST data.
Frequently asked questions
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
- Udyam registration: MSME registration for companies
How to get Udyam (MSME) registration for a private limited company, documents needed, benefits, and keeping it updated.
- MSME 45-day payment rule and its income-tax impact
The MSMED Act payment deadline for micro and small suppliers, interest on delay, and the income-tax rule that disallows late payments.
- Small company under the Companies Act: definition and benefits
What counts as a small company in India after the December 2025 revision (₹10 crore capital, ₹100 crore turnover), exclusions and benefits.