Online MSME Udyam Registration
Eligibility | Benefits | ProcessWe help Micro, Small, or Medium Enterprises register as MSME Udyam, which is necessary to take advantage of several benefits, government schemes, and 50% concessions in trademark filing fees. Avail of free consultation with experts!
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Overview of MSME Udyam Registration in India
We are a professional consulting firm (We are not a government agency) specialising in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide our professional services at a reasonable fee, ensuring that you receive value for your money. We explain the eligibility, process, and documents required for setting up and maintaining a business. We do not directly provide government documents or represent ourselves as a government agency.
| Overview of MSME Udyam Registration in India | |
|---|---|
| Government Portal | https://udyamregistration.gov.in |
| Process | Fully digitalised and Paperless. |
| Download NIC Code | https://www.ncs.gov.in/Documents/NIC_Sector.pdf |
| Who can apply | MSME registration is about entrepreneurs, and any business, whether it is a Company, LLP, Partnership Firm, Sole Proprietorship, NGO such as a society or trust, or a subsidiary of a foreign company, can apply for the MSME Registration. |
| Govt Fee | NIL (No Government Fee) |
| Prof Fee? | The process of obtaining MSME Registration is straightforward and self-explanatory. However, it is advisable to seek the services of a professional firm to ensure the correct selection of NIC Code and other particulars when applying for MSME Registration. |
| Certificate Issued | Udyam Registration Certificate |
| Mandatory Requirement | Aadhar of the Entrepreneur (Owner, Director or Authorised Signatory) |
MSME Registration for Wholly Owned Subsidiary of a Foreign Company
The wholly owned subsidiary of a foreign company, or for that matter, any company in India that has received FDI, is treated at par with any other company in India. Therefore, if the twin criteria of investment in the plant and machinery and annual turnover are met, then the wholly-owned subsidiary company of a foreign corporation can obtain MSME Udyam Registration.
Meaning or Definition of MSME (Updated)
Small businesses are the backbone of developing economies like India. These businesses operate on a smaller scale with limited capital. However, since they are primarily 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 the MSME industry in India. The MSME stands for Micro, Small, and Medium Enterprises. These enterprises are categorised based on their annual turnover and investment in plant and machinery or equipment. The government of India has revised and effective 1st April 2025, the following are the criteria.
Revised MSME Classification Criteria (Effective 1st April 2025)
| Enterprises Type | Investment in plant and machinery or equipment | Turnover During the Previous FY |
|---|---|---|
| Micro Enterprises | ₹2.5 crore | ₹10 crore |
| Small Enterprises | ₹25 crore | ₹100 crore |
| Medium Enterprises | ₹125 crore | ₹500 crore |
The MSME classification is based on the 'either/or' criterion, meaning an enterprise qualifies for a specific category by meeting either the investment or turnover threshold. It is crucial for MSMEs to regularly review their investment and turnover figures to ensure they remain within their designated category. Any change in these criteria necessitates an update to the MSME registration on the Udyam Registration Portal.
Important Note:
- Calculation of Net Turnover : The Export Turnover is excluded from the overall turnover
- Net Investment : For the calculation of the net investment of the MSME unit, the Investment made in Research, Pollution Control, and safety device installations are excluded
- Read more: https://www.setindiabiz.com/blog/msme-definition
Checklist for MSME Registration in India
The registration process for MSME Udyam Registration is fully digitalised and paperless. However, before you proceed to fill out the application form for the MSME Registration, you should prepare the following information so that it remains handy. The MSME is an Aadhar-based registration. Therefore, the aadhar number, which is linked with the mobile number of the owner or director of the business, is one of the key requirements.
| Information of Unit/Enterprise | Information of Entrepreneur (Owner/Director) |
|---|---|
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Contact us for a detailed Excel checklist that we have prepared so that you can capture all the information in one place, making it easy and error-free. Please note that well-prepared applicants will find it easy and simple to obtain an MSME registration. You can also visit https://udyamregistration.gov.in/ for the most updated information and guidance.
MSME Registration Process in India
The MSME Udyam Registration process is quick, simple, online and straightforward. You can do the registration yourself by visiting https://udyamregistration.gov.in. We offer our paid professional services to help or assist you with advisory services so that you register as an MSME.
Step - 1
Determine the MSME Category
The MSME Registration process is linked with the Income Tax Portal. Hence, if the applicant filed its ITR during the previous financial year, the turnover data and investment in plant and machinery will be automatically filled out. In case the applicant has not filed an Income Tax Return (ITR), then the MSME category (Micro, Small, or Medium) will be determined based on the turnover or investment details provided by the applicant on self-declaration.
Step - 2
Visit the MSME Portal & Verify Aadhar with OTP
The next step is to visit https://udyamregistration.gov.in/ and click on the appropriate link for new enterprises that are not yet registered as MSMEs. The Aadhar and the Name of the Entrepreneur are to be filled out on the next screen. The Adhar number will be verified using an OTP sent to the linked mobile number. Conversely, PAN will be verified using the Income Tax / GST database integrated with the portal.
Step - 3
Fill details in the MSME Udyam registration form
The applicant has to fill in the details of the business and entrepreneur, like name, address, type, and nature of the business activity, bank details, employee details, etc. The particulars so filled in the application form should be correct as per the requirement for error-free MSME registration. After filling in all the particulars, the form is then submitted using Aadhaar OTP-based authentication.
Step - 4
Issuance of MSME Registration Certificate
After the MSME Registration form is submitted, the concerned authorities carry out an in-depth examination at the MSME Ministry. Upon successful examination, the authorities will issue an MSME Registration Certificate With the MSME Registration Number mentioned on it.
Benefits of MSME Registration
MSME Registration for small businesses is a boon as it offers many benefits assisting their growth and development. Besides providing legitimate recognition to these businesses, MSME registration enables their enrollment in various favourable government schemes and initiatives. Most of these initiatives offer MSMEs financial support during the initial operation stages. Here are some notable benefits.
| Financial Benefits | Business Support |
|---|---|
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Along with the Udyam Registration, enterprises may register on the Government e-Marketplace (GeM), a portal for government-to-business transactions, and the SAMADHAN portal, which addresses issues related to delayed payments. Simultaneously, MSMEs can also onboard on the TReDS Platform, where the invoices of receivables are traded, through three available platforms: 1. www.invoicemart.com 2. www.m1xchange.com 3. www.rxil.in.
MSME Registration Renewal / Update
The Validity of the 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 the notification dated 26th July 2020. The annual update of the MSME Registration is necessary for the correct categorisation of the MSME, as the refreshed data from the Income Tax Portal concerning the turnover and the investment in plant and machinery is likely to change the type of the MSME.
Frequently Asked Questions
No, MSME registration is not mandatory. However, it is strongly advisable as registration as an MSME is necessary to avail of 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:
- Sole Proprietorships
- Partnership Firms
- Hindu Undivided Family
- Association of People
- Co-operative Societies
- Trusts
- Limited Liability Partnerships
- Companies
- Public Sectors Undertaking
There is no prescribed fee; in other words, the government does not charge any fee for MSME registration.
The validity of an MSME Registration certificate extends for a lifetime without any requirement for MSME renewal. However, the net investment and turnover must be updated on a self-declaration basis every financial year.
Udyog Adhar was a document issued to registered MSMEs for recognition under the old UAM system. The new Udyam Registration has replaced the UAM system. Thus, businesses with Udyog Adhar must 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 the MSME notification dated 26th June 2020, net investment and turnover must be updated every financial year. The process is relatively easy and can be completed on the MSME Portal itself. Details are updated on a self-declaration basis. For help, 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.
The 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.