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Know All About MSME Registration

MSME Registration

MSME (Micro, small and medium enterprises) sector is the major pillar of the Indian economy. India has the second-largest MSME base in the world covering 63.05 million micro industries, 0.33 million small, and about 5,000 medium enterprises in the country. The sector acts as a growth accelerator and contributes 30% of the GDP of the economy. It contributes incredibly to the socio-economic development with generating employment around 110 million, covering 6000 manufacturing items, contributing about 45% to the manufacturing sector and about 49.81% of overall exports. To support and flourish the sector, the government introduced the MSME Act.

Being a new entrepreneur, you might have many questions in your mind like What are MSMEs, how it is beneficial, how we can get MSME registration, how to get complaints resolved, and so on. Let us answer each of your questions one by one


  • What are MSMEs?
  • What are The Benefits To Get Registered As MSME?
  • How to Get Register As A MSME?
  • Documents Required For Udyam Registration
  • Track The Udyog Aadhaar MSME Application
  • Process in Case of Discrepancy or Complaint

What are MSMEs?

Manufacturing and service sectors are two categories that come under MSME and earlier classified based on the investment and turnover. The definition has been expanded and inserted the criteria of annual turnover with investment in plant and machinery. The revised definitions of MSME is as follows:

As per sub-section (9) of section 7 of the ‘Micro, Small and Medium Enterprises Development Act, 2006, MSMEs are W.E.F. 1st July 2020,

  1. A micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
  2. A small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
  3. A medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Micro, small & medium size industry

What are The Benefits to Get Registered as MSME?

New entrepreneurs can avail many benefits with the MSME registration, a few are mentioned below;

  • Cheaper Credit interest- Banks offer lower ROI to Registered MSMEs than the regular ones,
  • Registered enterprises are entitled to avail Tax rebates offered to the MSME Sector
  • Easy to get credit from financial institutions, Collateral free credits are offered to MSMEs.
  • Preferences in government certifications,
  • Access to the exclusive government tenders
  • Relief in trademark Government Fee
  • Register Enterprises can avail the Credit support schemes like Technology And Quality Upgradation Scheme, Grievance monitoring systems, Incubation, etc.,
  • Protection in delay in payments
  • 50% subsidy on patent registration
  • Relaxation on utility bills like electricity etc.,
  • Reimbursement for the charges of ISO certification, and many more.

Latest Schemes For MSMEs Amid COVID-19:

Amid the COVID-19 crisis, the government has announced the Aatmanirbhar Bharat Relief Package. Under this government has given following reliefs to Indian MSMEs:

  • ₹3 lakh crores collateral free automatic loans to be provided to MSMEs, for 4 years.
  • ₹20,000 crores subordinate loan to the MSMEs.
  • ₹50,000 crores equity infusion to be done through MSME “Fund of Funds”.

Have more information about MSME Scheme at

How to Get Registered as a MSME?

The process of getting instant MSME Udyog Aadhaar certificate online is very simple, and the filling process is pretty clear as well. The framework today is somewhat rejuvenated, and it requires less information and documentation than the earlier process.

From 1st July 2020 onwards, all the new, as well as existing MSMEs are required to get “Udyam Registration”. Udyam Registration can be done through online portal. It is completely paperless and free of cost.

Things are way less complex and productive at this point. Here is a basic guide for enrolling under MSME for acquiring Udyam Registration.

Step 1: Go to Udyam Registration

Step 2: Select “For new Entrepreneurs who are not registered yet as MSME” option as show below:

Udyam registration Process

Complete the Aadhaar verification process, by entering your Aadhaar number and name of Entrepreneur. Note: Aadhaar number will be required, in case of the proprietor for proprietorship firm; of the managing partner in the case of a partnership firm; of a Karta in the case of a Hindu Undivided Family (HUF); of authorized signatory in case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust.

  • Now Click on ‘Validate and Generate OTP’ (Ensure your mobile no. is registered with Aadhaar.)
  • Enter the OTP received on your number.
Udyam Registration

Step 4: Post verifying details successfully, you will be redirected to the UAM (Udyog Aadhaar Form).

  • Fill in all the required details in their respective fields like Correspondence details, Bank details, Enterprise details including ‘Major Activity’ and ‘National Industry Classification Code’ and others.
  • Select your DIC (District Industry Center) from the dropdown list.

Note: Once you enter all the details, recheck your entries to ensure that all details are correct and error free.

Step 5: Scroll to the bottom of the page, and click on the ‘Submit’ tab.

  • You will get another OTP on your registered mobile number.
  • Enter the OTP and click the ‘Final Submit’ button.
  • This will complete your application.
  • You will get the registration number.
  • After 3-4 working days, you can download your MSME Certificate online from portal.

Udyam Certificate is valid for the lifetime or until the owner is alive and the business is functional.

For those already registered as UAM and wants to migrate:

Step 1: Go to Udyam Registration (

Step 2: Select “for those already having registration as UAM” option.

Step 3: Complete the Udyog Aadhaar Verification with OTP.

UAM Registered
  • All the existing enterprises already registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
  • For Enterprises registered till 30th June 2020, the validity will be up to 31st March 2021.
  • Existing registered enterprise with any other organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

For existing enterprises, the due date of Udyam Registration is up to 31st March 2021. In the case, if the existing enterprise does not register before 31st March 2021 it will be either suspended or blocked.

Documents Required For Udyam Registration

  • Aadhaar Number,
  • PAN,
  • GST Number,
  • Bank Account Details, and
  • ITR of last previous year, if any

Track The Udyog Aadhaar MSME Application

You can follow these simple steps to check the status of your Udyog Aadhaar MSME track application:

Next screen will display the status of registration.

Process in Case of Discrepancy or Complaint

In the event of any complaint or discrepancies, the matter comes under the General Manager of the District Industries Centre of the concerned district. The verification inquiry will take place for the details provided for Udyam Registration.

Thereafter, issue is forwarded with essential remarks to the Director or Commissioner or Industry Secretary related of the State Government who in the wake of giving a notification to the enterprise and subsequent to permitting putting forth its viewpoint and dependent on the findings, may alter the details or prescribe to the Ministry of Micro, Small or Medium Enterprises, Government of India, for the Udyam Registration Certificate cancellation.

Important Note: Businesses must remember that they must deregister their MSME in the case of:

  • The investment limit increases more than the limit prescribed under the MSME Act; or
  • If the registered enterprise starts manufacturing any new item or items that require an industrial license or another kind of statutory license.

If your enterprise is meeting the criteria of MSME, go for the Udyog Registration which will not only give you several benefits but also ensures smooth operation in the future.

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