MSME Registration Process. What is it and How to do it?

MSME Registration Process

MSME Registration Process

The Indian government is in charge of developing and putting into effect the rules, regulations, and policies pertaining to small and medium-sized businesses (SMEs). The Ministry of Micro, Small, and Medium-Sized Enterprises, or MSMEs, oversees its regulation. On October 2nd, 2006, the MSME / Udyam Registration Process went into effect, and it is currently in force all over the nation. All the registered small and medium-sized businesses (SMEs) around the country get incentives, support, and resources from the government to help them become more competitive in the market.

It is commonly known that India depends economically on small and medium-sized businesses. Many, SMEs are found in the MSME sector, which makes up a sizeable amount of India’s GDP. The government created the MSME or Udyam registration portal, which is intended for both the organized and unorganized sectors.

MSME and its Significance

Online Udyam Registration

Micro, Small, and Medium-Sized Enterprises (MSME), and Small and medium-sized businesses (SMEs) are the foundation of emerging nations like India, according to the World Bank and official statistics, India’s MSME sector is responsible for 95% of all mechanical units, 45% of the nation’s total economic production, and more than half of the nation’s export earnings. These businesses also produce more than 6,000 different sorts of products/goods.

The growth and prosperity of the country’s economy depend on how well these enterprises do. Small and medium-sized enterprises (SMEs), often known as small businesses, carry out their operations more compactly. Regardless of whether a company is registered, the MSME Act permits the development of both production and service businesses. It is desirable to have MSME registration for one’s business, even if the government still needs to make MSME registration online required. It offers several benefits in relation to taxation, starting a business, and much more.

Classification of Enterprises



In accordance with the following criteria, an organization is labeled as a micro, small, or medium enterprise: निम्नलिखित मानदंडों के अनुसार, एक संगठन को सूक्ष्म, लघु या मध्यम उद्यम के रूप में लेबल किया जाता है:
A microbusiness, with a revenue of no more than five crore rupees and an investment in plant, machinery, or equipment of no more than one crore rupees. एक सूक्ष्म व्यवसाय, जिसका राजस्व पाँच करोड़ रुपये से अधिक न हो और संयंत्र, मशीनरी, या उपकरण में एक करोड़ रुपये से अधिक का निवेश न हो।
A small business with a revenue of no more than fifty crore rupees and an investment in plant, machinery, or equipment of no more than ten crore rupees. एक छोटा व्यवसाय जिसका राजस्व पचास करोड़ रुपये से अधिक न हो और संयंत्र, मशीनरी, या उपकरण में दस करोड़ रुपये से अधिक का निवेश न हो।
A medium-sized business, with a revenue of no more than 250 crore rupees and an investment in plant, machinery, or equipment of no more than 50 crore rupees. एक मध्यम आकार का व्यवसाय, जिसका राजस्व 250 करोड़ रुपये से अधिक न हो और संयंत्र, मशीनरी, या उपकरण में 50 करोड़ रुपये से अधिक का निवेश न हो।

Document Required for MSME Registration Process

  1. Aadhar Number
  2. PAN Number
  3. Address of Business
  4. Bank Account Number
  5. Basic Business Activity
  6. NIC 2-Digit Code
  7. Investment Details
  8. Turnover Details
  9. Partnership Deed
  10. Sales & Purchase Bills (Copies)
  11. License and Bills of Purchase of Machinery (Copies)

How to do MSME / Udyam Registration Online?

Udyam Registration Portal

As a government-sponsored software, the online MSME / Udyam registration process interfaces with the GSTIN database and the Internal Revenue Service. Businesses that are excluded from the applicability of the GST Act are not required to get a GSTIN in order to function.

Only entities that have registered under the GST framework are allowed to submit an application for Udyam registration online.

  1. You must fill out a form when you visit the portal for MSME / Udyam registration process.
  2. Click the top link on the page if this is your first time registering your company as an MSME.
  3. On the “Validate & Generate OTP” page, enter the Aadhaar Number and Name.
  4. After the verification is complete, you must enter the PAN information. If you don’t yet have a PAN card, you might choose No.
  5. Following this, you must complete the form’s fields 5 through 24.
  6. An OTP request will be issued to your phone once more at the conclusion of the form. For the form to be properly submitted, enter the OTP and verification code.
  7. A “Thank You” message and a Registration Number will show up following successful registration. Keep the number close to hand in case you need it.
  8. The authorization and MSME registration processes might take up to two weeks after the application form is received.
  9. If your application is accepted, the registration process will be completed, and you’ll receive your MSME certificate by email.

Note: For registering fill out this udyog aadhar registration form.

How to Register without Aadhaar Card/Number?

The applicant who does not have an Aadhaar card in accordance with section 3 of the act comes first. The appropriate DIC or MSME-DE for the organization or business shall file the UAM registration up till the time a person acquires an Aadhaar.

In the interim, the person may substitute the following papers for identification.

  • Copy of Aadhaar enrollment
  • Copy of the Aadhaar enrolment request
  • any of the subsequent Voter identification, a passport, a driver’s license, a PAN card, a work ID, and a bank passbook

Benefits of MSME / Udyam Registration Process

It is optional to have online MSME / Udyam registration. If you opt to register, your company can benefit from an excise exemption plan from direct taxes, take advantage of special banking programs designed specifically for MSMEs, and much more.

Additionally, registered companies with an MSME certificate will gain favor with a number of government agencies, including electricity.

  • Lowest bank loan interest rates
  • Take advantage of tax credits designed specifically for MSMEs and Minimum Alternate Tax (MAT)
  • Credit for MSMEs is quite accessible.
  • Payment of ISO Certification Fees
  • Take advantage of exclusive discounts and breaks on patents and business setups.
  • One-time settlement charge for the outstanding balance
  • Government support for MSMEs
  • Reduction in power costs
  • Get government credit guarantee programs.
  • Regarding international trade fairs, in particular.
  • Subsidy for bar code registration
  • The assistance of your state government


For small and medium-sized firms in India to qualify for different government incentives and programs, MSME registration online is a critical first step. Despite its intimidating appearance, registration is a crucial step for businesses to register their activities and access government incentives. We’ve covered the main phases of the MSME registration process as well as some of the difficulties that companies could encounter. It’s crucial to remember that, despite these difficulties, MSME / Udyam registration process has enormous potential rewards and may support the expansion and success of firms. All small and medium-sized firms are urged to view the MSME free registration procedure as a worthwhile investment in their long-term development.


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