MSME / UDYAM Registration Process

Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates, or proof.

On registration, an enterprise (referred to as ‘Udyam’ in the Udyam Registration portal) will be assigned a permanent identification number to be known as ‘Udyam Registration Number‘.

An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.

1. Classification of a Micro, Small or Medium Enterprise

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: –

MSME enterprises of the manufacturing sector can be categorized on the basis of the amount invested in plant and machinery –

a. Micro enterprises– Entities investing up to ₹ 1 crore and a turnover of less than 5 crores in plant and machinery.

b. Small enterprises– Entities investing up to Rs 10 crore and a turnover of Rs 50 crore in plant and machinery.

c. Medium enterprises– Entities investing up to Rs 50 crore and an annual turnover of under Rs 250 crore in plant and machinery.

MSME enterprises in the service sector can be categorized on the basis of the amount invested in equipment-

a. Micro enterprises– Entities investing up to ₹ 1 crore and a turnover of less than 5 crores.

b. Small enterprises– Entities investing up to Rs 10 crore and a turnover of Rs 50 crore.

c. Medium enterprises– Entities investing up to Rs 50 crore and an annual turnover of under Rs 250 crore.

2. The point should keep in mind before MSME /UDYAM registration

• There will be no fee for filing Udyam Registration and Aadhaar number is required for Udyam Registration.

• The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm, and of a Karta in the case of a Hindu Undivided Family (HUF).

In the case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.

• In case an enterprise is duly registered as a Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on a self-declaration basis.

• No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.

• Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.

• Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or update process shall be liable to such penalty as specified under section 27 of the Act.

• PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases.

3. MSME/ UDYAM Registration Process

Below mentioned are the steps to follow for the Registration Process for MSME:

Step 1: Fill in MSME registration form online with all required details by visiting the official website.

Step 2: After submitting the application form along with documents, the applicant shall receive a registration number.

Step 3: After that, the authority will register the applicant’s business as MSME within 1-2 working days.

Step 4: MSME registration certificate shall be delivered by email to the applicant’s registered email address.

The process for MSME registration is quick and hassle-free for businesses to get registered as MSMEs under the Ministry of MSME.

4. Documents required for MSME registration

• Aadhar number

• PAN number

• Address of the business

• Bank account number

• The basic business activity

• NIC 2 digit code

• Investment details (Plant/equipment details)

• Turnover details (as per new MSME definition)

• Partnership deed

• Sales and purchase bill copies

• Copies of licenses and bills of purchased machinery
(The checklist of documents and information related to MSME/ UDYAM registration is attached herewith for your reference).

5. Key Benefits of MSME Registration for Businesses in India

• Businesses can avail cheaper bank loans with lower interest rates (around 1 to 1.5 percent) in comparison to regular loans.

• Tax rebate availability.

• Unlike the regular Minimum Alternate Tax (MAT) duration of 10 years for credit, MSMEs are allowed to carry forward this limit to 15 years for credit against MAT.

• Special government tenders catering to MSMEs mainly.

• Easy credit accessibility Low-cost for industry set-up, patents, and so no due to special tax rebates and other concessions.

• High preference from the government in terms of licensing and certification.

• One-time settlement option for the unpaid amount.

6. FAQ’S- Frequently Asked Questions related to MSME Registration

1. Who can apply for MSME registration?

Ans. MSME registration can be obtained by the following entities:

• Individuals, Startups, MSMEs, business owners & entrepreneurs

• Private and Public Limited Companies

• Sole Proprietorships

• Partnership Firms

• Limited Liability Partnerships (LLPs)

• Self Help Groups (SHGs)

• Cooperative Societies

• Trusts, and many other entities

2. What is MSME Certificate Update Fee?

Ans. MSME Registration and to obtain MSME Certificate Fee is Free of Cost.

3. When MSME Certificate will be issued?

Ans. MSME Certificate is issued after 1-2 working days from the submission date.

4. What is the difference between Udyam Registration and MSME/Udyog Aadhar?

Ans. Udyam Registration is MSME registration to start a business under the Ministry of Micro, Small, and Medium Enterprises approved by the Government of India. Whereas MSME/Udyog Aadhaar is a 12-digit Unique Identification Number (UIN) provided by the for Small and Medium Enterprises (SMEs).

5. Is Aadhaar number mandatory for online MSME registration?

Ans. Yes, For MSME registration Aadhaar card is mandatory.

6. What are the MSME helpline numbers?

Ans. MSME Contact Us or Helpline numbers are as follows:

For MSME: 011-23063288 / 011-23063643

For Udyam Registration: 011-23061500 or 011-23061546

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