MSME Registration in India: Procedure, Documents Required
The government of India provides an MSME registration to the industries classified by the government as Micro, Small and Medium Enterprises (MSME) in India. The MSME registration helps MSMEs to obtain various benefits provided by the government for their establishment and growth.
What is MSME Classification?
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: —
(i) 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;
(ii) 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; and
(iii) 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
|
Particular |
Micro |
Small |
Medium |
|
Investment |
Less than Rs.1 crore |
Less than Rs.10 crore |
Less thanRs.50 crore |
|
Annual Turnover |
Less than Rs.5 crore |
Less than Rs.50 crore |
Less than Rs.250 crore |
What is MSME Udyam Registration?
MSME registration is also called Udyam registration. The entities that fulfil the MSME classification can apply for MSME registration from the government portal, the Udyam portal. The MSME registration is entirely online and can be obtained from the Udyam registration portal. It is not mandatory for MSMEs to obtain this registration, but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc
Register a Micro, Small and Medium Enterprise
- Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
- On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identity number to be known as “‘Udyam Registration Number”.
- An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.
Registration Process
- The form for registration shall be as provided in the Udyam Registration portal.
- There will be no fee for filing Udyam Registration.
- Aadhaar number shall be required for Udyam Registration.
- The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
- In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.
- In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
- No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act.
MSME Registration Certificate
The Ministry of MSME issues an e-certificate known as the Udyam Registration Certificate to MSMEs in India. The Udyam registration certificate is known as the MSME registration certificate. The entrepreneurs receive the MSME registration certificate upon completion of the MSME registration process. The certificate will contain a QR Code, from which the enterprise details can be accessed.
MSME Registration Benefits
Below listed are the MSME registration benefits:
- Due to MSME Registration India, bank loans become cheaper as the interest rate is very low, around 1-1.5%, much lower than interest on regular loans
- It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- Once registered the cost of getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available
- MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders
- There is a One Time Settlement Fee for non-paid amounts of MSME
- The MSME registration will help the MSMEs in availing the benefits of government schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments, etc.
- MSMEs are eligible for priority sector lending from banks
- MSMEs get the benefit of a government security deposit waiver that is helpful while participating in e-tenders
- Any number of activities, including service or manufacturing or both, may be added or specified in one MSME registration
- Barcode registration subsidy
- Exemption scheme from direct taxes
- ISO certification fees reimbursement
- Electricity bills concession
- Special consideration in international trade fairs
- How to check MSME registration by name?
- You cannot check the MSME registration number by name. However, you can retrieve your MSME registration number by following the below process: