MSME Registration In India: Procedure, Documents Required

MSME registration officially recognises the Micro, Small, and Medium Enterprises (MSMEs) in India and provides them with various government benefits to grow their business. 

Key Takeaways:

1. The government introduced MSME registration to provide benefits for the establishment and continuation of various small and medium scale businesses in India.
2. MSME registration online can be done on the Udyam portal.
3. MSME registration is not mandatory but is required to obtain benefits for the business.
4. There is no MSME registration fees. 
5. No documents are required for MSME registration online.

What is MSME Registration?

The government introduced the MSME registration, also known as Udyam registration, in 2006 for small and medium scale businesses in India. It is not mandatory for MSMEs to obtain this registration, but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

The MSME registration is entirely online and can be obtained from the Udyam registration portal. The entities that fulfil the below MSME classification can apply for MSME registration. 

Initially, the government classified and recognised any business or enterprise as MSMEs based on their investment criteria in plant and machinery or equipment. Later, the government revised the MSME classification by inserting annual investment and turnover criteria. 

The Budget 2025 revised the MSME classification, effective from 1 April 2025. The previous and the revised limits are provided below:

MSME Registration Eligibility

All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification limits can apply for MSME registration. The following entities that fulfill the MSME annual turnover and investment criteria are eligible for MSME registration:

• 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

Documents Required for MSME Registration

The MSME registration documents are as follows:

• Aadhaar number
• PAN number

However, these documents need not be uploaded on the Udyam portal for registration. MSME owners must only enter their Aadhaar number. PAN and GST-linked details of the enterprises will be taken automatically by the Udyam Registration Portal from the Government database.

GST registration is not compulsory for MSMEs that do not require a GST registration under the GST law. However, enterprises that mandatorily must obtain a GST registration under the GST law, must enter their GSTIN for obtaining the MSME registration or Udyam registration.

How to Apply for MSME Registration Online?

The MSME registration process is entirely online. MSMEs must visit the Udyam registration portal (udyamregistration.gov.in) for completing MSME registration. 

MSME registration online can be done under the following two categories –

1. For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and
2. For those having registration as UAM and For those already having registration as UAM through Assisted filing

For New Entrepreneurs who are not Registered yet as MSME or those with EM-II

Step 1: New entrepreneurs and entrepreneurs having EM-II registration need to click “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” as shown on the home page.        

Step 2: On the next page, enter the Aadhaar number and the name of the entrepreneur. Next, click on the “Validate and Generate OTP Button” and enter the OTP to verify PAN.

Step 3: Enter the “Type of Organisation” and the PAN number and click on the “Validate PAN” button. The portal will fetch the PAN details from the government database and validate the PAN number of the entrepreneur.

Step 4: After verification of PAN, the Udyam Registration form will appear. Entrepreneurs need to fill in their personal details and details of their enterprise.

Step 5: Enter the investment and turnover details, select the declaration, and click on the “Submit and Get Final OTP” button. Enter the OTP and submit the form. 

Step 6: The Udyam Registration Certificate will be sent through email. 

Registration For Entrepreneurs Already Having UAM

For those already having UAM registration, they need to click the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” shown on the home page of the Udyam portal and enter the Udyog Aadhaar Number. Next, an OTP option should be selected.

The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM. After choosing the OTP Options, click on “Validate and Generate OTP”. After entering OTP, fill in the registration details on the MSME registration form, and the Udyam registration will be complete.

MSME Registration Fees

There are no fees charged by the government for MSME registration. It is free of cost on the official website, i.e., Udyam registration portal.

How to Check MSME Registration Status?

Below is the process to check MSME registration status:

• Visit the Udyam registration portal.
• Click on the ‘Print/Verify’ option and click on the ‘Verify Udyam Registration Number’ option.
• Enter the ‘Reference Number’, enter the captcha code and click on the ‘Verify’ button. 

What is MSME Registration Certificate?

The Ministry of MSME issues an e-certificate known as the Udyam Registration Certificate to MSMEs in India. The Udyam registration certificate is known as the MSME registration certificate. The entrepreneurs receive the MSME registration certificate upon completion of the MSME registration process. The certificate will contain a QR Code, from which the enterprise details can be accessed.

MSME Registration Certificate Download

Below is the process to download the MSME Registration Certificate:

• Visit the Udyam registration portal.
• Click the ‘Print/Verify’ option and select the ‘Print Udyam Certificate’ option.
• Enter the ‘Udyam Registration Number’, ‘Mobile’, choose the OTP option and click on the ‘Validate & Generate OTP’ button. 
• Enter the OTP received on the mobile/email and click on the ‘Validate OTP and Login’ button.
• After logging in, take a printout of the Udyam registration certificate.

What is MSME Registration Number?

A permanent identity number is assigned to by the Ministry of MSME to the MSMEs who have completed the MSME registration known as the ‘Udyam/ MSME Registration number’. The MSME registration certificate will contain the 19-digit MSME/ Udyam Registration Number. 

What are the MSME Registration Benefits?

Below listed are the MSME registration benefits:

• MSMEs can obtain bank loans at a low interest rate as compared to the interest rate on regular loans.
• They can carry forward the credit for Minimum Alternate Tax (MAT) for up to 15 years instead of 10 years.
• They get reduction in the cost of getting a patent done. 
• They get many rebates and concessions on costs for setting up the industry.
• MSME registration helps to acquire government tenders easily as they get easy access to government marketplace and e-tenders.
• They get waiver on government security deposits, which helps while participating in e-tenders.
• They can avail the benefits of various government schemes, such as: 
  • Credit Guarantee Trust Fund for Micro & Small Enterprises
  • Credit Linked Capital Subsidy for Technology Upgradation
  • Interest Subsidy Eligibility Certificate
  • Technology and Quality Upgradation Support to MSMEs
  • Market Promotion & Development Scheme
  • Marketing Assistance Scheme
  • Domestic Market Promotion Scheme
  • Financial Support to MSMEs in ZED Certification Scheme
  • A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship
• They will get reimbursement on ISO certification fees.
• They get special consideration in International trade fairs.

MSME registration helps the government to recognise businesses and provide them with several advantages that support growth of both the enterprise and the country’s economy. Since the MSME registration process is completely online and free of cost, it takes only a few minutes to fill the registration form online and download the Udyam registration certificate. Though MSME registration is not mandatory, it is required for any small or medium business to scale and strengthen its operations.

Related Articles

• Udyamregistration.gov.in – Government Portal
• Documents Required for MSME registration in India
• MSME CHAMPIONS – A peek into the future of MSME
• Section 43B(h) of Income Tax Act: New MSME 45 Days Payment Rule