MSME Registration Process

The registration process for MSMEs is entirely done online on the government portal udyamregistration.gov.in. The registration may be done under the following categories:

• i) New entrepreneurs not yet registered as MSME or those with EM-II (Entrepreneurship Memorandum – II)
• ii) For those enterprises holding a registration under Udyog Aadhar Memorandum (UAM) and for those that have acquired registration as UAM through assisted filing

Registration for Entrepreneurs who are not yet Registered as MSME or for those with EM- II (Entrepreneurship Memorandum – II)

Registration for this category is done through the udyamregistration.gov.in website’s option For New Entrepreneurs who are not Registered yet as MSME or those with EM-II shown on the homepage. New registration of MSMEs is executed through the authentication of the Aadhar and PAN-based data of the entrepreneur.

Post successful authentication of Aadhar and PAN-based data, the entrepreneurs are required to provide the details about their enterprise as well as their personal details in the Udyam Registration Form as the next step.

Upon providing all the required details on the Udyam (MSME) registration form, the last step involves submission of all the provided details and authenticating them through a final OTP which is done using the Submit & Get Final OTP button.

The registration process concludes with the display of a successful registration message along with the application/registration reference number being notified. This reference number must be noted for future use.

The Udyam Registration Certificate is issued post the scrutiny of the MSME registration form, which takes a few days.

Registration Process for Entrepreneurs who Already Have UAM or Have Acquired it through Assisted Filing)

Those entrepreneurs that already hold registration as UAM must either use the option For those already having registration as UAM or For those already having registration as UAM through Assisted filing appearing on the homepage of the portal udyamregistration.gov.in. Choosing one of those options leads the applicant to the next page where the Udyog Aadhar number is keyed in and an option for OTP generation (either via an SMS on UAM-registered mobile number or through UAM-registered email) must be chosen.

Upon selecting the desired OTP option, the applicant must click Validate and Generate OTP to authenticate their details through the entry of an OTP. Post the OTP-based authentication, the registration details must be submitted on the MSME registration form which completes the Udyam registration process.

Fee for Registration of MSME

BVM’s expert consultants will comprehensively help you with the registration process at a very competitive and reasonable price so you don’t have to worry about the complexities that need to be taken care of during the registration.

Details that Must be Provided for MSME Registration

• Entrepreneur’s Aadhar
• Entrepreneur’s name as seen in Aadhar card
• Business/Organization Type – whether the business is a private or public limited company, a proprietorship, a limited liability partnership or partnership firm, a cooperative society, a society, a self- help group, a trust, or a Hindu Undivided Family
• Entrepreneur/Applicant’s Social Category (SC/ST, OBC, General, etc.)
• The entrepreneur’s and the enterprise’s PAN numbers
• The entrepreneur’s/applicant’s gender
• The enterprise’s official address and the location of its manufacturing plant/unit if any
• Date of incorporation of the enterprise and the commencement of its business operations
• Bank account details of the enterprise
• A description of the business activity of the enterprise – viz., manufacturing or services, or wholesale/retail trading
• The NIC code of the business’ primary activity
• Capital invested in the enterprise’s manufacturing unit and equipment (this information may be entered as zero in case the enterprise has not made any investment toward a manufacturing unit and equipment)
• The enterprise’s annual turnover (this information may be entered as zero if there is no turnover)
• Total number of employees or workers employed in the business

Issuance of MSME Registration Certificate

When an applicant submits the MSME registration form online, they are notified about the registration being successful along with a registration reference number.

The Ministry of MSME, upon verification of the registration application submitted online, issues the MSME Registration Certificate or the Udyam Registration Certificate through the email ID applicant/entrepreneur that was provided at the time of registration. The MSME registration certificate has lifetime validity and needs no renewal.

The MSME registration certificate may also be downloaded by the applicant from the Udyam Registration Portal by using the Print Udyam Certificate option under the Print/Verify tab on the portal’s homepage.

Similarly, to know their MSME Registration Number, entrepreneurs may use the Verify Udyam Registration Number option under the Print/Verify tab.

Advantages that your Business can Enjoy with MSME Registration

• MSME registration makes it easy for a business to obtain bank loans at very low interest rates of 1 to 1.5%
• MSMEs are eligible for rebates and concessions under various government schemes and can save up on costs of setting up their plants/manufacturing units and other business operations
• Registration as an MSME makes businesses eligible to avail of credit for Minimum Alternate Tax (MAT) that can be carried forward for a period of up to 15 years rather than for 10 years
• Being registered as an MSME enables businesses to win government tenders easily as several such tenders are offered only to MSMEs as a priority
• MSMEs enjoy the benefit of priority sector lending from banks
• Businesses registered as MSMEs get special consideration for participation in international trade fairs by the Government
• MSMEs can enjoy concessions on utility bills and exemptions from paying direct taxes
• Registration as an MSME helps businesses to avail of benefits from government schemes such as Credit Guarantee Scheme, Protection Against Delayed Payments, Credit Linked Capital Subsidy Scheme, etc.
• MSMEs can undertake multiple business activities such as manufacturing and services, and wholesale/ retail trading under one registration instead of under multiple registrations
• MSMEs are also eligible for reimbursement of ISO certification fees

FAQs

1) Who is eligible to apply for MSME Registration?

A) The following entities are eligible for MSME Registration provided they fulfill the MSME classification criteria of annual turnover and investment:

• Private and public limited companies
• Limited liability partnerships (LLPs) and partnership firms
• Startups, individuals, entrepreneurs
• Sole proprietorship
• Cooperative societies
• Societies and Trusts
• Self Help Groups (SHGs)

2) Is it mandatory for businesses to have a credit score before applying for MSME Registration?

A) No, businesses need not have a credit score before applying for MSME registration.

3) Does the Udyam Aadhar Registration Certificate have a validity date?

A) No, there is no validity date for the Udyam Aadhar Registration Certificate; it is valid for a lifetime. So long as the business is running ethically and is financially healthy, the registration certificate will not expire.

4) Are trading companies allowed to register for an MSME tag?

A) Yes, as per the revised classification of MSMEs of July 2021, even businesses engaging in wholesale and retail trade can register as MSMEs.

5) Is it mandatory to have multiple registrations if an MSME has several manufacturing plants in different cities?

No, an MSME registration applies to a single business entity regardless of the number of branches or manufacturing plants it operates in other cities.

6) Is it mandatory to furnish Aadhar data while obtaining the MSME registration?

A) Yes, furnishing Aadhar data is mandatory to obtain MSME/Udyam registration.

7) Is it mandatory to go for MSME registration for businesses that qualify as micro, small, and medium enterprises under the investment and turnover criteria?

A) No, business enterprises that qualify as MSMEs according to the investment and turnover criteria need not mandatorily obtain the MSME registration. However, going for the MSME registration will enable such enterprises to avail of several benefits such as getting loans at very low-interest rates, qualifying for priority sector lending from banks, and access to government schemes that encourage the growth/expansion of MSMEs.

8) Can an existing and a new enterprise both apply for MSME registration in India?

A) Yes, both – an existing as well as a new enterprise can enroll for MSME/Udyam Registration. The point to be noted here is that a business unit must be functional and fulfill the investment and turnover threshold to be eligible for MSME registration.