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MSME Registration In India

UDYAM Registration Online

Quickly get Udyam Registration for your MSME. We help you to file for MSME Registration with the Ministry of Micro, Small & Medium Enterprises to avail several incentives, benefits & Concessions as a registered MSME.
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What is MSME Registration?

MSMEs or micro, small, and medium enterprises are the backbones of developing economies like India. These businesses operate on a smaller scale with limited capital. However, since they are mostly labour intensive, their significance from the perspective of employment generation in the economy is quite huge. This is why the Government aims to consistently nudge the growth of MSME industry in India.
MSME Registration is a legal process recognising MSMEs so that they can avail the benefits under supportive government initiatives. The Registration is administered under the MSMED Act of 2006. It replaces the old UAM and EM II systems of recognising MSMEs with a new and simplified system of Udyam Registration.

Key Features of MSME Registration:

  • Online Process
  • No Government Fees
  • Lifetime Validity
  • Minimal Documentation
  • Self-declared Information
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MSME Registration Eligibility in India

The MSMED Act puts forth certain MSME Registration eligibility criterias to be fulfilled by businesses applying for it. These criterias determine whether a business classifies as micro, small and medium enterprise in India or not. The classification is based on their net turnover and net investment limits as discussed in the table below. However, before delving deeper into the prescribed limits, let’s first understand what Net turnover and Net investment actually mean.
  • Net Turnover: Export Turnover excluded from the overall turnover
  • Net Investment: Investment in Research, Pollution Control, and safety device installations excluded from the overall investment in Plant, Machinery, & Equipment.
No. Types of MSMEs Definition under the MSMED Act
1.
Micro Enterprise
Net investment in plant and machinery or equipment up to Rs. 1 crore and net turnover ≤ Rs. 5 crores
2.
Small Enterprise
Net investment in plant and machinery or equipment ≤ Rs. 10 crores and net turnover ≤ Rs. 50 crores
3.
Medium Enterprise
Net investment in plant and machinery or equipment ≤ Rs. 50 crores and net turnover ≤ Rs. 250 crores

Checklist & Documents

Before beginning the MSME Registration process, it is necessary for businesses to fulfil certain minimum requirements. Among these, the most important is the preparation of complete MSME Registration documents list. Preparing the documents required for MSME Registration beforehand, not only expedites the process but also makes it smoother and hassle-free.. In the table below, we have enlisted all the minimum requirements and documents for MSME Registration in detail.
Minimum Requirements List of Documents
  • Adhar Number linked with Mobile Number
  • GSTIN mandatory for eligible businesses
  • Business PAN mandatory for LLP, Company, Trust & Society
  • PAN of the Managing partner required for Partnership Firm
  • PAN of the Proprietor and Karta required for Sole Proprietorship and HUF
  • Business Activities must be clarified as per the NIC Code
    New MSME Registration
  1. PAN Card of the Applicant
  2. Adhar Card of the Applicant
    MSME Re-Registration
  1. Old Udyog Adhar of the Enterprise

MSME Registration Process in India

The MSME Registration process is quick, simple, and easy. Applicants can visit the online MSME / Udyam portal, choose the type of registration and continue with the application process. Providing the details of the applicant and the organisation correctly is crucial for a successful and hassle-free registration. Additionally, the applicant must be ready with the entire MSME Registration documents list beforehand to avoid any chaos later.

Step-1: Documentation

MSME / Udyam Registration Process is incomplete without the submission of documents listed above. Submitting inadequate or incorrect documents can lead to a complete rejection of the application. So,it is strongly recommended that you prepare all documents required for MSME registration beforehand, to avoid any hindrance later.

Step-2: Select the type of MSME Registration Online

Visit the Udyam Registration Portal and select the type of registration. The options include registration for new entrepreneurs, and re-registration for those with the old UAM/EM II registration.

Step-3: OTP-based verification of PAN & Aadhar

After selecting the type of registration, the applicant must provide his Adhar and PAN numbers. Adhar number will be verified using an OTP sent to the linked mobile number. PAN, on the other hand, will be verified using the Income Tax / GST database integrated with the portal.

Step-4: Fill out the Udyam registration form

Next, the registration form is required to be filled out with the correct details of the applicant and organisation. These include the name, address, type and nature of business activity, bank details, employee details and so on.

Step-5: Submission of the Udyam registration form

After the Udyam registration form is filled out completely, a second OTP is sent on the applicant’s mobile number. This will only be applicable to new registrations. After submitting the OTP, the applicant can finally submit the registration form.

Step-6: Issuance of MSME Registration Certificate

After the MSME Registration form is submitted, a thorough examination is carried out by the concerned authorities at the MSME Ministry. After a successful examination, the authorities will issue an MSME Registration Certificate with MSME Registration Number written on it.

MSME Registration Benefits in India

MSME Registration for small businesses is a boon as it offers a multitude of benefits assisting their growth and development. Besides providing a legitimate recognition to these businesses, MSME registration enables their enrollment in various favourable government schemes and initiatives. Most of these initiatives provide financial support to MSMEs during the initial stages of operation. A few prominent ones among them are mentioned below.

Collateral-free Loans

MSME Registered businesses can easily get collateral-free loans from financial institutions under the credit guarantee scheme.

Overdraft Interest Subvention

Registered MSMEs can also avail of an interest subvention of 2% on overdrafts up to a limit of Rs.1 crore.

Subsidy on Patent Registration

Registered MSME can get up to 50% subsidy on patent registration fees. This helps protect intellectual property of small businesses.

Industrial Promotion Subsidy

Registered MSMEs in certain states can avail of industrial promotion subsidies. This helps in reducing the cost of starting a business.

Timely Payment by Buyers

Various government measures ensure buyers make timely payments to registered MSMEs on the purchase of goods or services.

Free ISO Certification

Registered MSMEs can apply for ISO Certification free of cost. ISO certification helps improve credibility of a business in the market.

MSME Registration Renewal / Update

The Validity of MSME Registration Certificate extends for a lifetime. There is no requirement for MSME Renewal at regular intervals. However, registered MSMEs must update the net turnover and investment limits every financial year on a self-declaration basis. The requirement for such an update is provided under a notification dated 26th July, 2020.

Register Your MSME With Our Expert Assistance!

At Setindiabiz, we provide end-to-end assistance in Online MSME Registration for Startups and Small Businesses at affordable prices. Our team of MSME Registration consultants and legal advisors are available for guidance and support at every step. We assist through the preparation of documents to filing the complete application. With our robust customer support and 24*7 consultation, you will receive your MSME Certificate quicker than you ever expected!
  • Online Service
  • 24*7 Customer Support
  • Documentation Assistance
  • Expert Legal Advisory
  • Affordable Prices

FAQs on MSME Registration

MSME Registration Certificate has a lifetime validity and no MSME renewal is required. However recent MSME Registration guidelines suggest that the net turnover and net investment must be updated every financial year.
No, MSME registration is not mandatory for eligible enterprises. However, to avail the various MSME benefits and financial assistance offered by the Government, enterprises must have MSME Registration in India.

Yes, all startups are eligible for MSME Registration in India, provided they fall under the new definition of MSME. Startups eligible for MSME Registration include:

  1. Sole Proprietorships
  2. Partnership Firms
  3. Hindu Undivided Family
  4. Association of People
  5. Co-operative Societies
  6. Trusts
  7. Limited Liability Partnerships
  8. Companies 
  9. Public Sectors Undertaking
No amount of MSME registration fees is charged by the Government. MSME Registration in India is online and absolutely free of cost.
The validity of an MSME Registration certificate extends for a lifetime without any requirement of MSME renewal. However, the net investment and net turnover must be updated every financial year on a self-declaration basis.
Udyog Adhar was a document issued to registered MSME for recognition under the old UAM system. As of now, the new Udyam Registration has replaced the UAM system. Thus, businesses with Udyog Adhar have to re-register to maintain their MSME status in India.
The meaning or definition of MSMEs and SSIs vary under law. For instance, businesses across sectors and industries can be classified as MSMEs. However, only manufacturing and service based businesses can be classified as small-scale industries in India. Moreover, the threshold limits of investments are also different for the classification of MSMEs and SSIs.
Usually, it takes 1-2 working days from the date of the application for MSME registration.
According to MSME notification dated 26th June, 2020, net investment and turnover must be updated every financial year. The process is quite easy and can be completed on the MSME Portal itself. The details are updated on a self-declaration basis. For any assistance, contact our experts.
No, a business can obtain only one MSME registration. There is no requirement for multiple MSME registrations, even if the business is carrying out multiple activities. However, all business activities and branches of the enterprise must be mentioned in the application for MSME registration.
MSME Registration Certificate has a lifetime validity and no MSME renewal is required. However recent MSME Registration guidelines suggest that the net turnover and net investment must be updated every financial year.