Overview of MSME Registration
The Ministry of Micro, Small and Medium Enterprises, broadly known as MSME, is the premier Government body that deals with the formulations and management of rules, guidelines, and laws pertaining to small scale industries in India. The MSME came to effect on October 02, 2006. It aims to incentivize, facilitate, and boost the competitiveness of MSMEs working pan India.
MSME, i.e. Micro, Small and Medium Enterprises, is considered as the backbone of the Indian Economy. The MSME sector encompasses a massive number of small scale industries under its belt, making it one of the prominent GDP contributors of India. MSME is a government-backed initiative that seeks to boost the growth of small scale industries operating in the organized and unorganized sectors.
What Do You Mean by MSME Classification?
Previously, the prevailing MSME Classification was based on the criteria of investment in production facility and machinery. So to access MSME benefits, the MSMEs have to confine their investment to the lower level, as shown below:
Previous MSME Classification
Sector |
Criteria |
Micro |
Small |
Medium |
Manufacturing |
Investment |
< Rs.25 lakh |
< Rs.5 crore |
< Rs.10 crore |
Services |
Investment |
< Rs.10 lakh |
< Rs.2 crore |
< Rs.5 crore |
Book a Free Consultation
Get response within 24 hours
Standard Documents Needed for MSME Registration
PAN and Aadhaar cards are the only essential documents required for MSME registration. This registration is fully web-based, and no proof of documents is needed. GST and PAN linked particulars on annual turnover and enterprises' investment will be secured automatically by the portal from the government databases.
How to Apply for MSME Registration on Udhyam Registration?
The Udyam Registration portal is a government-backed portal that is in sync with Income Tax and GSTIN systems. Acquiring GST registration is not a mandate for enterprises that fall outside the scope of GST law. But, the enterprises that fall under the GST regime need to secure GST registration to obtain Udyam Registration.
Points to Ponder:
Benefits offered by MSME Registration to the Small Scale Units
- Public Procurement Policy
- Credit Linked Capital Subsidy Scheme
- Credit Guarantee Scheme
Why Connect with Corpbiz Support for registration and licensing services?
Corpbiz is one of the most trustable platforms for government registration and licensing services. We ensure that our clients get top of the line services regardless of the quantum of compliances and rules set out under different Acts.
Top reasons for choosing Corpbiz services
- Presence of highly experienced professional and field experts
- Ability to simplify complicated pre-registration requirement for the sake of client’s understanding
- Proven track record of rendering flawless services to different clients
- Ensure on-time delivery of government license and registration
Frequently Asked Questions
Yes, MSME registration is available to existing and new businesses. However, to become eligible for registration, they need to meet the threshold limits for registration. UAM registration
Yes, an existing and new business can apply for MSME/Udyam Registration, provided the existing unit is functioning and meets the threshold limits for registration. UAM Registration has to be re-registered for Udyam registration to avail of the benefits of MSME.