MSME Development Act 2006 + Udyam Registration

Applies to

Enterprises meeting Micro / Small / Medium thresholds on combined investment-in-plant-and-machinery and turnover (since the July 2020 reclassification). Latest revision (effective Apr 2025): Micro — investment ≤ ₹2.5 cr and turnover ≤ ₹10 cr; Small — investment ≤ ₹25 cr and turnover ≤ ₹100 cr; Medium — investment ≤ ₹125 cr and turnover ≤ ₹500 cr. Udyam Registration is the official online identifier; mandatory to access MSME-specific benefits and the Section 43B(h) buyer-payment-in-45-days protection.

Key points

• Udyam Registration: free, online, PAN + Aadhaar.
• Section 43B(h): mandatory MSME payment within 45 days, else expense disallowed.
• TReDS: mandatory for buyers > ₹250 cr turnover from FY24-25.
• ZED Certification (MSME-specific) eligibility tied to Udyam.
• Apr 2025 threshold revision expanded MSME scope.

Applicability triggers

• Enterprise within Micro / Small / Medium thresholds on investment + turnover
• Buyer turnover > ₹250 cr → mandatory TReDS onboarding

Practitioner questions

• Does our enterprise still qualify as MSME under the Apr 2025 thresholds?
• Are we (as a buyer) capturing all MSME suppliers correctly to honour the 45-day rule under Section 43B(h)?
• Have we onboarded to TReDS as required by our turnover band?

Sources

• Udyam Registration
• Ministry of MSME