MSME Udyam Registration in India

Learn how to register as an MSME and enjoy the benefits of participating in this sector in India. MSMEs are crucial to the country’s socio-economic development and are regulated by the Ministry of Micro, Small & Medium Enterprises. Registering under the Micro, Small, and Medium Enterprises Development Act is mandatory for MSMEs to use the various government schemes. These industries contribute significantly to the economy, with 95% of all industrial units, 45% of industrial jobs, and 50% of total trades or exports. They are also known as small-scale industries or SSIs.

What is MSME?

MSME stands for Micro, Small, and Medium Enterprises. It refers to businesses that fall within a specific size and investment range. In India, MSMEs play a crucial role in the economy, contributing significantly to employment generation and economic growth. The government of India has implemented various policies and schemes to support and promote the development of MSMEs, such as easy access to credit, subsidies, tax benefits, and training programs.

The Micro, Small, and Medium Enterprises Development Act of 2006 classifies MSMEs or Micro, Small, and Medium Enterprises into two types:

• Manufacturing Enterprises, which are involved in the production or manufacturing of goods in the industry.
• Service Enterprises, which are engaged in providing or supplying services.

The Advantages Of The MSME Udyam Registration Certificate In India

• The loan interest rate is significantly lower for MSMEs than for regular loans.
• Bank loans provided to MSMEs become much cheaper, with an interest rate of around 1 to 1.5%.
• Registered MSMEs are eligible for credit for Minimum Alternate Tax (MAT), which can be carried forward for up to 15 years instead of the regular 10 years.
• Many government tenders are exclusively offered to MSME industries.
• MSMEs have easy access to loans and credit.
• Registered MSMEs enjoy concessions and reimbursements, reducing business setup costs.
• Registered MSMEs receive higher preference in the government certification and license process.
• A Time Settlement Fee is imposed for all non-paid amounts of the MSME certificate.

MSME Udyam Registration Certificate

To obtain an MSME registration certificate, an entity must first obtain registration under MSME. The entity must follow these steps:

1. Go to the government portal, udyamregistration.gov.in, to complete the MSME registration process online.
2. Choose between:
   • Registration for new entrepreneurs with EM-II or not yet registered.
   • Registration for those already having UAM or assisted filing.
3. Fill in Aadhaar details and validate with OTP.
4. Enter PAN details and validate again.
5. Fill out the Udyam Registration form with required business details.
6. Submit and complete the process. A reference number will be generated, and the certificate will be issued after verification.

MSME Udyam Registration: Self or Assisted Filing

Applicants already registered with Udyog Aadhar Memorandum (UAM) can continue registration on the homepage by selecting the relevant option. OTP will be sent to the mobile/email linked to UAM, and the application can be completed through the Udyam portal.

MSME Registration Fees

If registered via the government website, there is no fee, but the process can be lengthy. Through expert consultants, a nominal fee is charged for smooth registration.

The Eligibility Criteria For MSME Online Registration In India

The “Atma-nirbhar Bharat Abhiyaan” package removed the distinction between service and manufacturing MSMEs. The investment and turnover limits are now equal:

Documents Needed for MSME Online Registration in India

• Aadhar Card of the applicant
• Owner’s name as per Aadhar
• Social category, gender, physical status
• Enterprise name, type, PAN, official address
• Date of incorporation, previous registration if any
• Bank details, business nature, NIC code
• Employee count, investment details

The Procedure Of MSME Online Registration In India

1. Fill out and submit the MSME registration form online/offline.
2. Upload required documents. Process takes 1–2 working days.
3. Registrar verifies documents within 2 working days.
4. Upon approval, the MSME registration certificate is issued.