MSME Registration - Procedure, Benefits, Documents Required

Here we have explained msme registration online in India, the complete msme procedure, its benefits, government schemes and the necessary documents required.

MSME is defined as Micro, Medium, and Medium Enterprises. MSME factories are the economy's backbone in a developing country like India. The Government of India, established Micro small medium enterprises to support and encourage small scale businesses to ensure the development and boost the economy.

The MSME sector accounts for 45% of India's total industrial jobs, 50% of India's total exports, and 95% of the country's industrial units, and more than 6000 kinds of products are produced in these industries (As per msme.gov.in). As these industries expand, the country's economy expands and flourishes as a whole. Such sectors are also referred to as small-scale industries or SSIs.

What are Micro, Small, and Medium Enterprises?

MSME Registration Process Online

MSME Registration Benefits

Information Needed to Register for MSME

The government-launched MSME schemes are

Even if the company is on the production line or service line, it is possible to obtain registrations for any of these areas by means of the MSME Act. The government has not yet made this registration mandatory, but it is useful to get one's company registered under this because it offers a lot of tax benefits, business setup, credit facilities, loans, etc.

On October 02, 2006, the MSME became operational. The promotion, facilitation, and development of the competitiveness of micro, small, and medium-sized enterprises have been established.

What Is Micro, Small, and Medium Enterprise?

The existing MSME classification was based on the criteria of investment in plant and machinery and equipment used during the factory setup. So, to gain these certain MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below:

Sector	Criteria	Micro	Small	Medium
Existing MSME Classification
Manufacturing	Investment	< Rs.25 lakh	< Rs.5 crore	< Rs.10 crore
Services	Investment	< Rs.10 lakh	< Rs.2 crore	< Rs.5 crore

These lower limits are destroying the desire to expand as they are unable to further scale up their companies. There has also been a long-standing proposal for the revision of the MSME classification so that their activities can be further extended while continuing to benefit from the MSME benefits. The government has now revised the MSME classification* under the Aatmanirbhar Bharat Abhiyan (ABA) by adding composite requirements for both expenditure and annual turnover.

In addition, the distinction under the MSME concept between the manufacturing and service sectors has been eliminated. This exclusion would produce parity between the sectors. The revised MSME classification* is as follows, in which the investment and the annual turnover are also to be weighed when deciding on an MSME.

Enterprise	Turnover	Investment
Revised MSME Classification
Micro	Not more than 5 Cr.	Not more than 1 Cr.
Small	Not more than 50 Cr.	Not more than 10 Cr.
Medium	Not more than 250 Cr.	Not more than 50 Cr.

Registration of MSMEs is to be carried out on the private registration site of udyogadharcertificate.in. New startup businesses and entrepreneurs need to click on the "For New Entrepreneurs Not Registered as MSME" button on the MSME registration home page. A new MSME registration is carried out by entering the number of the Aadhaar card with or without the PAN card. On udyogadharcertificate.in business owner can register their business in a simple and easy way.

Benefits of MSME Registration

As the interest rate is very low about ~ 1 to 1.5 percent, the bank loans become cheaper due to the MSME registration. Much lower than the daily loan interest.

It also permitted the minimum alternative tax (MAT) credit to be carried forward for a period of up to 15 years rather than 10 years.

Once the cost of a patent is registered, or when many rebates and discounts are available, the cost of starting up the industry decreases.

Registration of MSMEs allows to quickly obtain government tenders as the Udyam Registration Portal is integrated with the e-marketplace of the government and various other portals of the state government that provide quick access to their marketplace and e-tenders.

For non-paid sums of MSME, there is a One Time Settlement Fee.

Information Needed to Register for MSME

The Aadhaar Card is the only MSME registration document required. Registration for MSMEs is entirely online and proof of documentation is not needed. PAN and GST related enterprise expenditure and turnover information will be automatically taken from the government databases by the Udyam Registration Portal.

Click here for MSME registration: https://udyogadharcertificate.in/udyam-online.php

With the Income Tax and GSTIN programs, the Udyam Registration Portal is fully integrated. PAN and GSTIN numbers are compulsory for registration from 01.04.2021. Registration can now be completed without PAN and GSTIN, but PAN number and GSTIN number must be changed within 01/04/2021 to prevent suspension of registration.

All who have an EM-II or UAM registration or any other registration provided under the Ministry of MSME by any authority shall be required to re-register themselves on this portal (as stated in the Registration Process heading above).

Old MSME Udyog Aadhaar Registration Certificate

New MSME Udyam Registration Certificate

MSME Registration Process on Udyogadharcertificate.in

Udyogadharcertificate.in makes the online process for MSME registration very simple and user-friendly. The online registration process of MSME is simple for any business individual as follows:

Step 1: Visit the MSME Registration portal

Step 2: Fill all the details on MSME Registration Form, like Aadhaar number, name, and address

Step 3: Make the online payment for your MSME Registration Application

Step 4: One of our registration experts will process your MSME Registration application

Step 5: In 1-2 hours you will receive your MSME Registration e-certificate at your registered e-mail address.

Above we have mentioned various benefits of getting an MSME registration certificate for your business. If you any doubt about the eligibility of MSME registration then contact us. The online registration MSME process is very simple, no need to run around the government office for registration. Now on the Udyam registration portal, it’s a paperless process with no uploading or submitting of documents required anymore.

It is very simple to print udyam certificate in udyogadharcertificate.in and fill up the simple form to get the Udyam registration online.

Government-launched MSME schemes are:

Scheme for technology and efficiency up-gradation:

Registration in this scheme would assist micro, small, and medium-sized businesses to make use of energy-efficient technologies (EETs) in manufacturing units in order to minimize production costs and to introduce a clean growth mechanism.

Grievance Monitoring System:

It is advantageous to register under this program in order to get the business owners' grievances answered. In this, the business owner is given the right to open and check the status of the grievances, if they are not happy with the result.

Incubation:

This system helps innovators to introduce their new designs, ideas, or products. This Government scheme provides financial assistance for the establishment of Business Incubators'. New concepts, designs, goods, etc are promoted by this method.

Credit Linked Capital Subsidy Scheme:

Under this Government scheme program, company owners are equipped with modern technologies to replace their old and outdated technology. To upgrade and have better means to do their business, a capital subsidy is provided to the company. These small, micro, and medium-sized businesses are able to approach the banks directly for such subsidies.

Frequently Asked Questions on MSME Udyam Registration

Is MSME updated to Udyam Registration?

Yes, MSME registration has been replaced with Udyam registration. All business owners need to register with the MSME/Udyam Registry if any micro small and medium industries want to start any MSME sector. This registration is absolutely online with MSME/Udyam Registration. This facility offers the organization a lot of benefits and subsidies.

Is aadhaar card compulsory?

Yes. An Aadhaar card is compulsory for registration under the Udyam registration. In the event that the applicant is not the owner, the partner's Aadhaar card and the director would be needed.

Can existing and new businesses both apply for Udyam registration?

For MSME/Udyam registration, existing and new businesses can apply online at udyogadharcertificate.in, will help you in registration in the correct manner. To avail these government schemes benefit from the advantages of MSME, UAM registration must be re-registered for Udyam registration.

What is the MSME certificate's validity?

There is no expiry date for the MSME certificate. As long as the company is ethical and financially sound, the certificate will not expire.

Can trading companies register under MSME?

Yes, they can register under the ministry of MSME. Click here to register your trading company.

Do I need multiple registrations in various cities for manufacturing plants?

The MSME Udyam Registration Certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be given.