MSME Registration


How to Register under Micro Small and Medium Enterprises in India?

calendar31 Oct, 2019
timeReading Time: 5 Minutes
Micro Small and Medium enterprises

Registration under the Micro Small and Medium Enterprises opens a new horizon of opportunities for registered entities. Also, you can benefit from numerous schemes launched by the Government of India regularly by registering under MSME. In this article, we are going to learn how you can get this registration and how to get the maximum advantage of government schemes.  

What is Micro Small and Medium Enterprises?

Micro Small and Medium Enterprises are industries working on micro, small and medium scale investments. These industries are majorly based in village areas with minimum capital investment. Also, as per the Micro Small and Medium Enterprises Development Act, 2006 the MSMEs are classified into two categories:

Manufacturing Enterprises

Industries engaged in manufacturing or producing goods pertaining to any group of industries specified in the Schedule of the Industries {Development and Regulation} Act, 1951. Additionally, manufacturing units employing plant and machinery in the process of value addition to the final product having a distinct name, character or use. The manufacturing industries are defined in terms of investment in equipment and machinery.    

SERVICES ENTERPRISES: The industries engaged in providing services to other sectors are categorized as service enterprises. These industries are defined in terms of investment in equipment.

Existing MSME Classification
ManufacturingInvestment < Rs.25 lakh < Rs.5 crore < Rs.10 crore
ServicesInvestment< Rs.10 lakh< Rs.2 crore < Rs.5 cror e

Now, the government has revised the MSME classification under the Aatmanirbhar Bharat Abhiyan(ABA), by adding combined criteria of both the investment and annual turnover. The previous difference between the manufacturing and the services sectors under the MSME is now removed. The removal shall create uniformity between the sectors. The revised MSME classification is given below and the investment and annual turnover, both are considered for determining an MSME.

Revised MSME Classification
Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore

What are the Benefits of MSME Registration?

The following are the benefits of registering under the Micro Small and Medium Enterprises:

  • The entities holding an MSME Registration gets loans from banks at a cheaper rate, approximately 1- 1.5%, this is a lot lesser than the usual bank rates.
  • Various tax rebates are provided to MSMEs.
  • Also, MSMEs get credit effortlessly from various financial entities
  • MSMEs are permitted to carry forward the credit for Minimum Alternate Tax {MAT} up to 15 years, which in the general case is ten years.
  • Moreover, there are various tenders available only to MSME Industries.
  • Additionally, registered MSMEs are preferred more than entities not holding the registration
  • Companies holding an MSME Certificate have superior opportunities for growth as they get a direct entry in major national/ international trade fairs and similar other opportunities.
  • MSME Certificate is also helpful for opening a bank account

Who can apply for MSME Registration?

Micro Small and Medium-scale enterprises can apply for MSME Registration. Apart from small scale enterprises, limited liability partnerships, private companies, OPCs, proprietary firms and public companies having the turnover within the specified limits can also apply for MSME Registration. 

Is MSME Registration Mandatory?

No, it is not mandatory to obtain MSME Registration. On the other hand, obtaining the registration under the Micro Small and Medium Enterprises can help you take advantage of various schemes launched by the Indian Government in favour of MSME from time to time. 

MSME Registration Procedure

Follow the given steps to register your entity under the Micro Small and Medium Enterprises;

Fill the MSME Form:

The registration for MSME is to be made through the government portal of udyam registration. There are two categories under which the registration of MSMEs can be done in the portal which are as given below –

  • For Entrepreneurs who are new and not yet registered as MSME and
  • EM-II or UAM- for those having registration and for those having registration as EM-II or UAM via assisted filing

Prepare all the documents:

Get together all the documents required as per the MSME Registration Application form.

Filing the MSME Application form:

Furthermore, in the next step, you need to upload all the necessary documents and submit the application to the Registrar of MSME. Then, the concerned authority processes and verifies the authenticity of the documents provided by you.

Application approval & Certificate issuance:

After the successful verification of all your credentials, your entity will get registered under the MSME.

Documents Required for MSME Registration

Following are the list of documents and other details that you need to provide as per the application form for obtaining MSME Registration;

  • Social category- specify, whether the applicant belongs to the General, SC, ST, or OBC category
  • Aadhaar Card
  • Owner’s name – it should be strict as per the Aadhar Card of the applicant
  • Gender of the applicant
  • Physical status- whether the applicant is physically disabled or not
  • Name of the enterprise
  • Type of enterprise- select from the given list
  • PAN
  • Official Address of the unit
  • Location of the unit
  • Date of incorporation of the entity
  • Previous registration details
  • Bank details of the applicant
  • The activity of organization- choose from “Manufacturing” or “Service”
  • NIC Code
  • Employment information- the total number of employees working in the applicant’s organization
  • Investment details in plant and machinery
  • Any other relevant document/ detail

Few MSME schemes as launched by the Government are:

Grievance Monitoring System:

This scheme was in terms of receiving the complaints of the business owners. Hence, registering under this scheme is beneficial as the business owners can check their complaint status and open if the outcome doesn’t satisfy them.

Technology and Quality Upgradation Scheme:

To use energy efficient technologies (EETs[1]) in manufacturing units was the purpose to introduce this scheme. Registration under in this scheme will help the micro, small and medium enterprises to decrease the cost of production and implement a mechanism for clean development.

Credit Linked Capital Subsidy Scheme:

Under this scheme, the business owners are provided with new technology to replace the obsolete and old technology. A capital subsidy is provided to the businesses to improve and have better means to deal with their business. These MSME enterprises can directly visit the banks for availing these subsidies.

Incubation: The objective of this scheme is to help the innovators with the execution of the new ideas, design or products. This scheme shall financially assist for setting ‘Business Incubators’.

Can you register under MSME if you don’t have an Aadhaar Card?

Applicants not having an Aadhaar card need to apply for Aadhaar enrolment as per Section 3 of the Aadhaar Act. Additionally, for obtaining an Aadhaar Card, the applicant can visit any Aadhaar enrolment centre to get enrolled for Aadhaar.

Furthermore, it is provided by the time the applicant receives his Aadhaar, UAM Registration can be filed by the concerning DIC/ MSME- DI on behalf of the firm of the applicant. Also, the following documents should be provided as a viable means of identification;

  • ID Slip of Aadhaar enrolment in case the applicant has applied for Aadhaar enrolment
  • Furthermore, a copy of the application/ request made for Aadhaar enrolment
  • Also, any of the documents given below;
    • Bank photo passbook
    • Voter ID
    • Passport
    • Driving License
    • PAN Card
    • Employee photo ID card issued by government


The Ministry of Micro Small and Medium Enterprises is the apex body of the Government of India for the formulation and administration of rules and regulations relating to Micro Small and Medium Enterprises in India. MSME Sector in India is a leading producer of small scale industry products in the global market. It can emerge as a top in the industry if given proper attention to it.

Read our article:Is MSME and SSI the Same: An Overview

MSME Registration

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