How to Register MSME in 2026 and Understand the New Turnover Limits

Have you ever thought about how some small businesses get loans more easily at lower interest rates, get priority in government tenders and pay electricity at subsidised rates? The answer is MSME registration. Registering as an MSME (now referred to as Udyam) in 2026 will be more important than ever before for Indian businesses like yours due to new turnover limits and enhanced governmental support.

Owing to its importance, you should know how to register your business as an MSME, what documents you need and its eligibility; everything we will cover in this blog. 

What is MSME registration?

MSME registration full form is “Micro, Small and Medium Enterprises registration.” These companies or businesses are registered with a government called ‘Udyam’, which is known as MSME registration. Upon successful registration, you get a registration certificate with a unique MSME registration number, aka Udhyam registration number.  

In simple words:

You are telling the government that this is ‘My Business’ 

The government assigns your business a unique registration number. 

Latest MSME Investment & Turnover Limit (as per Budget 2025)

From 1 April 2025, the government changed the MSME registration turnover limit and investment limits, keeping in mind that more businesses with a growth trajectory still get the benefits of MSME status. 

According to the updated recommendations:

Micro enterprise

Investment in the plant and machinery or equipment not more than ₹2.5 crore.

Turnover: up to ₹10 crore

Small enterprise

Investment: up to about ₹25 crore

Turnover: up to ₹100 crore

Medium enterprise

Investment: up to about ₹125 crore

Turnover: up to ₹500 crore

Read More: Turnover Limit For GST Registration

Old vs New MSME Investment & Turnover Limit Comparison

MSME Registration Eligibility

To register yourself as an MSME, you should belong to one of the following business categories: 

• Manufacturing 
• Service industries, 
• Wholesale
• Retail trade

Apart from the business category, one more criterion is the type of business entities, which are as follows: 

• Individuals, startups, business owners, and entrepreneurs
• Private and public limited companies
• Sole proprietorship
• Partnership firm
• Limited Liability Partnerships (LLPs)
• Self Help Groups (SHGs)
• Co-operative societies
• Trusts

MSME Registration Documents

The document requirements for MSME registration are minimal, which are as follows: 

• Aadhaar number
• PAN number

On the Udyam portal these documents need to be uploaded on the Udyam portal for MSME registration. All you have to do is enter their number in the form, and then the system will fetch all the relevant details from the government database. 

MSME Registration Process: Step-by-step Instructions

1. Registration for New Entrepreneurs (Including Those with EM-II)

Step 1: Visit the Udyam Registration Portal.

Step 2: Click on ‘For New Entrepreneurs who are not Registered yet as MSME or those EM-II’.

Step 3: Feed the Aadhaar number and the full name of the entrepreneur.

Step 4: Click ‘Validate and Generate OTP’ and enter the OTP received.

Step 5: Enter PAN details and click on the ‘Validate PAN’ button

Step 6: Fill in enterprise details, such as investment and turnover.

Step 7: Submit the form and enter the final OTP.

Step 8: Upon successful submission, the Udyam Registration Certificate will be issued via email.

2. Registration for an enterprise having UAM 

Step 1: Click on ‘For those having registration as UAM’ on the homepage.

 Step 2: Enter the Udyog Aadhaar Number (UAM).

 Step 3: Choose an OTP option (mobile or email) and generate an OTP.

 Step 4: Enter the OTP and complete the registration form.

 Step 5: Submit the form to complete Udyam registration.

MSME Registration Benefits

You may be wondering, "MSME Registration mein fayda kya hai?

Fair question. If it does not add real value, it is not worth doing.

The following are among the advantages of registering an MSME in the real world:

Easier and cheaper loans

Bank lending in the priority sector. In many cases, you get loans at reduced interest rates. 

No collateral credit programs.

There are numerous schemes supported by the government that enable loans without heavy security if you are an MSME.

Guarantee in delayed payment situations.

In case a large business holds your payment even after the given deadline, you can seek help from the MSME authorities and even demand interest.

Subsidies and incentives

Interest subsidies on loans, incentives to upgrade technology, special power tariffs (based on state) and assistance to participate in trade fairs.

Less complicated involvement in tenders.

Some government tenders also contain definite MSME quotas or relaxations, and you can take advantage of the same. 

Better credibility

The MSME registration number on your letterhead can make all the difference in how banks, vendors and even customers approach your business.

Read More: GST Registration Process for SMEs

What’s Next? 

We hope that after reading this blog, you understand the process of MSME registration in depth. We encourage you to follow the process and get yourself Udyam registration to take advantage of government subsidies and schemes. In the meantime, kindly check whether your business is compliant with the latest GST regulations or not. If you are facing difficulties, we recommend that you sign up for Munim GST Return filing software and streamline your compliance. 

Frequently Asked Questions on MSME Registration

Can a trading company be registered under MSME?​

Yes, trading retail and wholesale businesses are allowed to register in the Udyam portal, which is MSME registration. 

Can service providers register under MSME?​

Yes, service providers can get registered under MSME (Udyam), provided that they meet the investment and turnover requirements.

Is it compulsory to register under MSME?

No, it is not compulsory to register under MSME. However, it has its own benefits which you cannot take advantage of if you are not registered. 

Can a CA firm register under MSME?

Yes, a CA firm can be registered under Udyam as a service enterprise, provided that it fulfils the MSME criteria.

Can traders register under MSME?​

Yes, whether you are a wholesale trader or a retailer, you can register under MSME if the turnover and investment criteria are fulfilled. 

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com. His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.