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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.
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|
|Investment & Annual Turnover||< Rs.1 crore & < Rs.5 crore||< Rs.10 crore & < Rs.50 crore||< Rs.50 crore & < Rs.250 crore|
The MSME registration documents are as follows:
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.
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 –
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.
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.
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.
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.
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.
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.
Below listed are the MSME registration benefits:
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:
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:
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.
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.
Yes. A partnership firm that fulfils the MSME classification’s investment and turnover criteria can apply for MSME registration.
You cannot check the MSME registration number by name. However, you can retrieve your MSME registration number by following the below process:
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.
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.
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.
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.
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.
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.
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.
Yes. There is no cost for MSME registration on the Udyam Registration Portal, and it is free of cost.
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Udyamregistration.gov.in – Government Portal
Documents Required for MSME registration in India