MSME Registration – The Complete Guide

The abbreviation MSME stands for Micro, Small, and Medium Enterprises. The small and medium scale business and manufacturing units are the backbones of the country’s economy when these industries expand they support the economic development by creating employment opportunities while making the country a self-reliant nation.

To support the growth of such industries, the Government of India has been launching a series of programs and policies that are regulated by the MSMED Act 2006 in India under the Ministry of Micro, Small, and Medium Enterprises. To avail the benefits of these schemes, businesses are required to obtain MSME Registration.

Eligibility for MSME Registration in India

'Earlier due to rigid structure many MSME industries were unable to scale their businesses further. However, under the imitative of  Aatmanirbhar Bharat Abhiyan, the government has revised the MSME classification by including composite criteria of both investment and annual turnover. Here is the Revised MSME Classification:

  • Micro MSME Enterprises : : It is an enterprise whose investment is < Rs. 1 crore and annual turnover is < Rs. 5 crore.
  • Small MSME Enterprises :  It is an enterprise whose investment is < Rs. 10 crore and annual turnover is < Rs. 50 crore.
  • Medium MSME Enterprises : It is an enterprise whose investment < Rs. 50 crore and annual turnover are < Rs. 250 crore

Additionally, in July 2021, the government made the amendment and allowed wholesale and retail business units to obtain the MSME certificate, and thus can apply for MSME registration of their wholesale/retail trade business except for motor vehicles and motorcycles.

 

Online Procedure for Registering MSME on Udyam

The process is completely online and is to be done on https://udyamregistration.gov.in  There are two categories for the MSME registration that are:

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

Entrepreneurs who have registration as UAM and already have registration as UAM through Assisted filing

 

For the first category

  • Click on “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” on the home page.
  • Enter your Aadhar number along with the required details and click on the “Validate and Generate OTP Button”.
  • Once you are done with OTP verification, the PAN Verification page opens. The applicant must fill in the “Type of Organization” and PAN Number. The portal will extract the PAN details from the government databases and validate the PAN number.
  • Now, fill in the personal details and details of their enterprise on the Udyam Registration form.
  • Then click on “Submit and Get Final OTP”. The MSME online registration process will be completed and a message of successful registration with a reference number will appear. 
  • Note down the reference number for future use. You will receive the Udyam Registration Certificate after verification of the MSME registration form, which may take a few days. 

For the Second Category 

  • Click on “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” on the homepage.
  • Now enter Udyog's Aadhaar Number. Then, click on the OTP option and complete the validation process.
  • Fill out the registration details MSME registration form and Udyam registration will be complete.

Documents Required for the MSME Registration

Since the Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems. An applicant is only required to have an Aadhaar Card, and PAN Card as the further details will be taken automatically from the Government databases.

 

How can we simplify the process of getting an MSME Certificate?

Amidst the incorporation of a business, it is strenuous to get involved in all these registration processes. Nevertheless, to save your time as well as efforts, we at Muneembhai accomplish the complete process on your behalf.

Our service structure features end-to-end fulfillment under the guidance of our expert.

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