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How To Register As An MSME?

MSME In India? Here’s How To Register

 The process of registering as a MSME in India is completely online as notified by the Government on 26th June 2020. Entrepreneurs can register using their Aadhaar number very easily. This registration is known as  ‘Udyam Registration’.

Various benefits that a registered MSME enjoys are:

  • Priority lending which means that banks have certain earmarked funds on the direction of the government solely for MSMEs
  • Greater credit at lesser interest rates for an MSME
  • Credit guarantee scheme
  • Export promotion and government assistance
  • Capital grants and others for the development of infrastructure
  • ISO certification charges are reimbursed
  • Exclusive purchasing that protects from competition in market
  • Facilitation for technology improvement and up gradation to registered

In This Blog:

Eligibility Criteria For A MSME

The eligibility criteria for registering as an MSME are determined from the applicability of the MSME Act, wherein the specific turnover and investment limits will indicate if you are eligible for a small, micro, or medium enterprise registration. For the manufacturing sector enterprises, investment in plants and machinery is evaluated.

Let us look at the specific limits for determining the eligibility –

Sector TypeMicro EnterpriseSmall EnterpriseMedium Enterprise
Manufacturing & Services SectorInvestment less than Rs. 1 crore. Turnover less than Rs. 5 croreInvestment less than Rs. 10 crore. Turnover up to Rs. 50 crore.Investment less than Rs. 50 crore. Turnover up to Rs. 250 crore.

If you meet the thresholds for any of the above categories, you can register like that. This registration is not deemed compulsory by the government, but it’s quite advantageous to do so.

Also read: Steps To File A Trademark For An Individual

How To Register A MSME?

Documents and details that are required for the registration process-

  • Bank details
  • PAN card
  • Aadhaar card number of the applicant and his/her social category number (if applicable)
  • Date of commencement of business and previous registration details (if any)
  • Type of activity (manufacturing or services)
  • National Industrial Classification Code (NEC)
  • No of Employees and their classification
  • Plant and machinery investment (for manufacturing units)
  • Equipment investment (for service sector units)
  • Plant location

You need to visit the following website to easily apply online through simple steps and a cost-free process- 

MSME Registration 

  1. Once you have opened the website, you need to enter your 12 digit Aadhar number and your
  2. Once you have done that, click on “validate and generate OTP”.
  3. Once the validation has successfully happened, you must enter the social category you belong to (whichever is applicable).
  4. The name of the business has to be filled in
  5. The description of the type of entity is to be entered
  6. PAN number has to be filled in for Cooperative, Private Limited Company ,Public Limited Company and Limited liability Partnership (LLP) business entities as a necessary It is optional for other types of entities.
  7. Enter your plant location
  8. Then, enter the date of commencement of
  9. Enter your bank
  10. Next, choose the type of major activity of your
  11. The NIC code has to be entered
  12. The number of employees has to be
  13. District Industries Centre or the DIC location must be entered
  14. Having given these details, click on ” SUBMIT” to submit your
  15. An OTP will be generated to your email for confirmation and thereafter the application will be successfully
  16. It will take around 2 working days for the government to work on your case and then issue the Udyam Aadhar Certificate

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