MSMEs (Micro, Small and Medium Enterprises) play an integral role in India's socio-economic development. The growth of these industries ensures the economic enhancement of the country. Though MSME registration is not compulsory, obtaining it from the Udyam portal will help businesses reap benefits in terms of getting credit facilities, taxation and business set-up.
MSME registration or Udyam registration will enable these enterprises to avail numerous incentives, subsidies, etc., extended by the Government. The sections below highlight all the particularities related to the MSME registration process.
With robust digitisation in every sector, it has become easy for entrepreneurs to do MSME registration online. MSME registration can be done under two categories-
Entrepreneurs who are not registered as MSME or with EM-I
Entrepreneurs who have the UAM or are registered as EM-II
Here are the steps that new entrepreneurs must follow to get their business or enterprises registered as an MSME:
Step 1: Firstly, visit the Udyam portal and select ‘For New Entrepreneurs who are registered yet as MSME or those with EM-II’.
Step 2: Now enter the Aadhaar card, name of entrepreneur and then click on ‘Validate and generate OTP’.
Step 3: Provide the OTP to get redirected to PAN verification page.
Step 4: Then mention further details like ‘Type of Organisation’, and PAN details and click on 'Validate PAN' tab. The Udyam portal will retrieve all PAN details from the government database and authenticate the entrepreneur's PAN.
Step 5: On successfully verifying PAN, entrepreneurs will come across the Udyam registration form. Entrepreneurs must fill out the form with necessary personal information and details related to the enterprise.
Step 6: Proceed to click on ‘Submit and Get Final OTP’.
Step 7: Enter the OTP to complete the Udyam registration process. On successful registration, entrepreneurs will receive a reference number.
The MSME registration process for new entrepreneurs will change along with PAN card details and without the PAN card. Entrepreneurs having the UAM must follow the mentioned steps to register their enterprises.
Step 1: Go to the Udyam portal and select ‘For those having registration as UAM’ or ‘For those already having registration as UAM through Assisted filing’.
Step 2: Provide the UAM and select ‘Validate and Generate OTP’.
Step 3: Enter the OTP, and fill out the MSME registration form with prerequisite registration details.
MSME registration will be completed by providing relevant information, and entrepreneurs can see the reference number on screen.
Business owners registered as MSME must follow the steps mentioned to log in on the Udyam portal:
Step 1: Visit the website and provide a 19-digit Udyam registration number.
Step 2: Enter mobile number and click on ‘Validate and Generate OTP’.
Step 3: Enter OTP and select ‘Validate OTP and Login’ tab to access the portal.
Business owners can easily obtain the MSME certificate online by following the mentioned steps:
Step 1: Go to the Udyam portal and click on the 'Print/Verify' tab. Then select the ‘Print Udyam Certificate’.
Step 2: On the redirected page, provide the Udyam registration and contact numbers.
Step 3: Proceed to click on ‘Validate and Generate OTP’.
Step 4: Enter the OTP and click on 'Validate OTP and Print' tab to view the MSME registration certificate displayed on the screen. Business owners can download and print the MSME registration certificate.
Here are the following details that entrepreneurs must mention in the MSME application form to register their enterprises on the Udyam portal:
Name and gender of business owner
Organisation type (Proprietorship, partnership firm, cooperative society, public or private limited company, Hindu undivided family, self-help group, society of trust etc.)
PAN card details
Address of Enterprise
Bank account number along with IFSC code
Number of employees
NIC code of primary activity
Capital invested in machinery and plant
Business owners must adhere to the following eligibility criteria to register their enterprises as an MSME. Under the ABA (Aatmanirbhar Bharat Abhiyan), the Indian Government has classified MSME sectors based on investment and annual turnover.
The following investment and annual turnover brackets must be considered to determine an MSME:
For a micro-enterprise, the maximum investment bracket must be Rs. 1 Crore, and maximum annual turnover must be Rs. 5 Crores.
A small enterprise must have a maximum investment and annual turnover bracket of Rs. 10 Crores and Rs. 50 Crores respectively.
A medium enterprise's maximum investment and annual turnover limit must be Rs. 50 Crores and Rs. 250 Crores respectively.
The documents entrepreneurs must submit to register their business are the Aadhaar card and PAN card. As the PAN and GST are linked, the Udyam Registration Portal can obtain all information related to investments and annual turnover.
However, to be on the safer side, entrepreneurs can keep business PAN cards, bank details, bank statements, NOC, business establishment certificates, lease agreements etc.
There are several benefits that a business owner can reap through MSME registration:
Businesses registered as MSMEs can obtain loans at a lower interest rate and get MSME loans easily.
MSME Udyam registration will help entrepreneurs avail of tax benefits as per the MSME act.
Business owners can get a minimum alternate tax for up to 15 years instead of 10 years.
It becomes easy for business owners to get government tenders, licenses, registration and approvals.
Once the business is registered, business owners can get rebates and concessions on the cost of patenting or during a factory set-up.
Here is the list of helpline numbers that entrepreneurs can reach out to resolve any of their queries:
For general queries: 011- 23063288
For administrative queries: 011- 23063800
For technical queries: 011- 23062354
In conclusion, as MSME sectors are significant contributor to India’s GDP, Government has been taking several initiatives to help these flourish. The MSME registration or Udyam registration will help all small businesses scale heights and sustain in this competitive era and get robust support from government.
Here are the following entities that can apply for MSME registration:
Individuals, MSMEs, Startups, business owners, entrepreneurs
Limited liability partnerships
Trusts, cooperative societies etc.
A copy of the MSME certificate will be displayed on Udyam portal. Business owners have to download and take a printout of the copy.
Business owners do not have to bear any cost for MSME registration or for obtaining MSME certificate.
Entrepreneurs will also receive MSME Registration Certificate within 1 to 2 days of submitting an application for their business registrations.
Incomplete documentation, non-fulfilment of eligibility criteria, unpaid debts, inadequate cash flow, loan defaults, etc., can lead to the rejection of an online MSME application.
Yes, MSME borrowers can easily avail of loans from banks without pledging any collateral. However, they must have a healthy credit scores and decent repayment history.
Udyam registration refers to the process of registering a business as an MSME that will make a business body functional under the Ministry of Micro, small and medium enterprises. MSME/ Udyog Aadhaar is a 12-digit number that is assigned MOMSME to a particular business.
Yes, business owners must provide their Aadhaar number while doing an online MSME registration.
It is not necessary for MSME borrowers to have healthy CIBIL score. However, keeping a good credit score will give them an upper hand in receiving low-interest loans.
Business owners will get a soft copy of the MSME certificate if they opt for an online MSME registration.