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 |
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Standard Necessary Papers Needed for MSME Registration
PAN and Aadhaar cards are the only essential necessary papers required for MSME registration. This registration is fully web-based, and no proof of necessary papers 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
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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.
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Frequently Asked Questions
Yes, Udyam Registration has been introduced by GOI as a replacement of the erstwhile registration system, i.e. MSME registration. Applicants seeking Udyam Registration can file an e-form on the concerned web portal.
Yes, the Aadhar card is one of the fundamental necessary papers for availing of Udyam Registration in India.
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.
Udyam Registration Certificate remains valid for a lifetime; hence, there is no requirement of renewing the same.
No. MSME only encompasses manufacturing and service enterprises. Trading firms do not have permission to access the MSME scheme. MSME is all about boosting start-ups with subsidies and benefits; such companies serve as a mediator between manufacturer and customer. Thus, they fall outside the scope of MSME registration.
No. The MSME certificate is granted for a single entity regardless of allied branches or plants. But, information pertaining to multiple plants or branches must be furnished.