Document
Index

Documents Required for MSME registration in India

By Mayashree Acharya

|

Updated on: Jun 19th, 2024

|

2 min read

For promoting entrepreneurship, the government provides special benefits to small businesses in the form of subsidies and incentives. Also, banks give loans at concessional rates to set up these businesses. For availing those, the small businesses need to register under the Micro, Small and Medium Enterprises (MSMEs) act.

If a business is registered under the MSMEs act, it can avail several benefits like cheaper bank loans, tax benefits, preference during the tender process, and access to various schemes and incentives of the government.

MSME Enterprises

The old MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs had to limit their investment to a lower limit, as mentioned below:

Existing MSME Classification

SectorCriteriaMicroSmallMedium
ManufacturingInvestment< Rs.25 lakh< Rs.5 crore< Rs.10 crore
ServicesInvestment< Rs.10 lakh< Rs.2 crore< Rs.5 crore

These lower limits were killing the urge to grow as they were unable to scale their businesses further. Also, there was a long-pending demand for the revision of MSME classification so that they can further expand their operations while continuing to avail the MSME benefits.

Thus, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed. This removal created parity between the sectors.

The following is the revised MSME classification, where the investment and annual turnover, both are to be considered for deciding an MSME:

Revised MSME Classification

CriteriaMicroSmallMedium*
Investment & Annual Turnover< Rs.1 crore & < Rs.5 crore< Rs.10 crore & < Rs.50 crore< Rs.50 crore & < Rs.250 crore

Registration Process

Aadhar number is compulsory for registering under the MSME act. Any enterprise that qualifies under the definition of MSME can obtain Udaym Registration under the MSME Act. An application is to be filed online using Udyam Registration Portal for obtaining Udyam.

Udyam Registration is a completely online registration process and once the form is filled and submitted on the Udyam Registration portal, the registration certificate will be issued after a few days. The Udyam Registration has lifetime validity unless cancelled.

Documents Required

The Udyam registration process is entirely online and does not require the uploading of any documents. However, before applying for Udyam Registration, the proprietor or owner of the enterprise is required to have the following documents:

  • Aadhar Card
    • In the case of a Proprietorship Firm, the Aadhar number of the proprietor is to be entered in the Udyam Registration form.
    • In the case of a Partnership Firm, the Aadhar number of the managing partner is to be entered in the Udyam Registration form.
    • In the case of a Hindu Undivided Family (HUF), the Aadhar number of the Karta is to be entered in the Udyam Registration form.
    • In the case of a Company or Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the Aadhar number of the organisation or authorised signatory is to be entered in the Udyam Registration form.
  • PAN Card
  • GSTIN (GST Identification Number), if the enterprise is required to be registered under GST Law.

Note: Having GSTIN is not compulsory for enterprises that do not require a GST registration under the GST law. Such enterprises can register under MSME without having a GST registration. However, the enterprises that need to compulsorily obtain GST registration under the GST regime must have GST registration for obtaining MSME/Udyam Registration.

The above documents need not be uploaded but the Aadhar and PAN number of the entrepreneur is required to be entered in the registration form.

Related Articles

Udyamregistration.gov.in – Government Portal

MSME Registration In India

Impact of Aatmanirbhar Bharat Abhiyan on MSMEs

inline CTA
Get an expert at affordable price
For ITR, GST returns, Company Registration, Trademark Registration, GST Registration
Can't get yourself started on taxes?
Get a Cleartax expert to handle all your tax filing start-to-finish
About the Author

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

summary-logo

Quick Summary

Government provides benefits to small businesses through subsidies and incentives. MSME categorization revised under ABA based on investment and annual turnover. Udyam Registration portal allows online registration. Documents required include Aadhar, PAN, and GSTIN. Registration has lifetime validity. Having GSTIN is not mandatory for all enterprises.

Was this summary helpful?
liked-feedbackliked-feedback

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company PolicyTerms of use

ISO

ISO 27001

Data Center

SSL

SSL Certified Site

128-bit encryption