Get you Tax query Solved

Pick from the basket of various allied services:

  • Tax filing
  • GST Filing
  • Digital signature, Incorporate business etc.
Get Started

Get Expert Assistance

Thank You for sharing your details. Our experts will get in touch with you shortly

MSME Registration In India : Procedure, Documents Required

Updated on: Dec 13th, 2022 - 7:22:56 AM

15 min read

social iconssocial iconssocial iconssocial icons

MSME registration helps the Micro, Small and Medium (MSME) industries to obtain various benefits provided by the government for their growth. In a developing country like India, MSME  industries are the backbone of the economy. When these industries grow, the country’s economy grows and flourishes. These industries are also known as small-scale industries or SSIs.

The MSME registration is not yet made mandatory by the Government of India 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.

What is MSME classification?

Initially, when the government introduced the MSME registration in 2006, the MSME classification was based on the investment criteria in plant and machinery or equipment. The government revised the MSME classification by inserting composite investment and annual turnover criteria. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed.

The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding if an entity is considered as 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

Documents Required for MSME Registration

The MSME registration documents are as follows:

  • Aadhaar card
  • PAN card

There are no MSME registration fees and it does not require proof of documents. PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases since the portal is integrated with Income Tax and GSTIN systems.

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

How to Apply for MSME Registration on Udyam Registration Portal?

The MSME registration process is entirely online. MSME online registration is to be done on the government portal of udyamregistration.gov.in. There is no MSME registration fee charged for registration. MSME registration online can be done under the following two categories in the portal –

  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 the button “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” shown on the home page of Udyam Registration Portal. 

Udyam Registration portal homepage. MSME registration for new entrepreneurs.

Step 2: On the next page, enter the Aadhaar number and the name of the entrepreneur and click on the “Validate and Generate OTP Button”. Once this button is clicked and OTP is received and entered, the PAN Verification page opens.

MSME Registration Aadhaar verification. Aadhaar number for MSME registration.

Step 3: The entrepreneur must enter the “Type of Organisation” and the PAN Number and click on the “Validate PAN” button. The portal gets the PAN details from the government databases and validates the PAN number of the entrepreneur.

MSME Registration PAN verification. MSME Registration PAN number.

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

MSME Registration form. MSME Registration application. Udyam Registration form.

Step 5: Enter the investment and turnover details, select the declaration, and click on the “Submit and Get Final OTP” button. The OTP is sent, and after entering the OTP and submitting the form, the Udyam Registration Certificate will be sent through email. Entrepreneurs can also find out the MSME registration status from the Udyam Registration Portal. 

MSME Registration form submission. MSME registration complete. Submit MSME registration form.

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 government portal. This will open a page where Udyog Aadhaar Number is to be entered, and 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, “Validate and Generate OTP” is to be clicked. After entering OTP, registration details are to be filled on the MSME registration form, and Udyam registration will be complete.

Udyog Aadhaar Registration. MSME registration for UAM.
inline CTA
Get an expert at affordable price
For ITR, GST returns, Company Registration, Trademark Registration, GST Registration

Benefits of MSME Registration

Below listed are the MSME registration benefits:

  • Due to MSME Registration India, bank loans become cheaper as the interest rate is very low, around 1-1.5%, much lower than interest on regular loans
  • It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
  • Once registered the cost of getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available
  • MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders
  • There is a One Time Settlement Fee for non-paid amounts of MSME
  • The MSME registration will help the MSMEs in availing the benefits of government schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments, etc.
  • MSMEs are eligible for priority sector lending from banks
  • MSMEs get the benefit of a government security deposit waiver that is helpful while participating in e-tenders
  • Any number of activities, including service or manufacturing or both, may be added or specified in one MSME registration
  • Barcode registration subsidy
  • Exemption scheme from direct taxes
  • ISO certification fees reimbursement
  • Electricity bills concession
  • Special consideration in International trade fairs

Who can Apply for Udyam Registration?

All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration. Thus, the MSME registration eligibility depends on an entity’s annual turnover and investment. The following entities 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

How ClearTax can help in MSME Registration

ClearTax helps an entrepreneur get MSME and GST registration in just 4 steps:

Step 1: Purchase of Plan

Purchase the plan, and an expert is assigned who will take care of your end-to-end GST and MSME registration process. 

Step 2: Upload Documents to Vault

Upload the below documents to our vault:

  • PAN card
  • Aadhaar card
  • Proof of business registration or Incorporation certificate
  • Address proof of the place of business
  • Identity and address proof of promoters/director 
  • Bank Account statement/Cancelled cheque
  • Digital signature
  • Letter of authorization/Board resolution for authorised signatory
  • No objection certificate from the owner of the property

Our experts will verify the documents uploaded by you. 

Step 3: Filing GST Registration Form

Our experts will submit the GST registration form on the GST portal. They will forward you the ARN Number generated for future reference. You will receive the GSTIN in 3-5 working days, subject to government approval.

Step 4: Filing MSME Registration

Our experts will file for MSME registration as soon as GSTIN is received. You will receive the MSME Registration Certificate for your entity in 2-5 working days.

Frequently Asked Questions

What is an 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.

Can I get MSME registration for a partnership firm?

Yes. A partnership firm that fulfils the MSME classification’s investment and turnover criteria can apply for MSME registration.

How to check MSME registration by name?

You cannot check the MSME registration number by name. However, you can retrieve your MSME registration number by following the below process: 

  • Visit the Udyam Registration Portal.
  • Click on the ‘Forgot UAM/Udyam Registration Number’ button on the homepage.
  • Choose the registration option.
  • Choose the OTP option
  • Enter the mobile/email address
  • Click on the “Validate & Generate OTP” button.
  • Enter the OTP. The MSME registration number will be displayed.
Is it mandatory to have an Aadhar card for obtaining Udyam registration?

Yes. For obtaining Udyam registration, an Aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.

What is the validity of the MSME Registration Certificate/Udyam Registration certificate?

There is no expiry of the Udyam/MSME Registration Certificate. As long as the entity is ethical and financially healthy, there will be no expiry of the certificate.

Who is eligible for MSME registration?

All entities classified as Micro, Small and Medium enterprises as per the MSME classification are eligible to apply for MSME registration. An individual cannot apply for MSME registration. A proprietorship, partnership firm, company, trust or society with an investment below Rs.50 crore and annual turnover below Rs.250 crore are eligible for MSME registration.

How much time it takes for MSME registration completion?

The MSME registration is completed as soon as the Udyam/MSME registration form is filled and submitted on the Udyam Registration Portal. After submission of the form, a message will be displayed on the screen about the completion of the MSME registration. MSME registration check can be done on the Udyam Registration Portal.

Is MSME registration for traders valid?

Yes. Earlier, the MSME registration covered only manufacturing and service industries. However, in July 2021, the government announced that the wholesale and retail trade would come under the MSME classification. Thus, traders can apply for MSME registration for their wholesale/retail trade business except for motor vehicles and motorcycles.

Is MSME registration and Udyog Aadhaar same?

No. Udyog Aadhaar registration is an initiative of the government to provide a 12-digit registration number for SMEs. The MSME registration replaced the Udyog Aadhaar registration; thus, all MSMEs need to obtain the MSME registration to obtain government benefits for MSMEs.

How many days it takes for MSME Registration Certificate?

After completing the MSME registration, it usually takes 3-5 days to get the MSME Registration Certificate. The MSME Registration Certificate is sent to the mail of the entrepreneur.

Is the MSME registration online free?

Yes. There is no cost for MSME registration on the Udyam Registration Portal, and it is free of cost.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice. It should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

Related Articles

Udyamregistration.gov.in – Government Portal

Documents Required for MSME registration in India

MSME CHAMPIONS – A peek into the future of MSME

inline CTA
Get an expert at affordable price
For ITR, GST returns, Company Registration, Trademark Registration, GST Registration
CONTENTS
;

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