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It is not for nothing that the Micro, Small and Medium Enterprises (MSME) sector is called the backbone of Indian economy. As per IBEF, it is estimated that there are 633.9 lakh MSMEs registered in India. As a part of India’s digital transformation, the MSME registration (Udyam registration) process in India has been made completely online to facilitate ease of doing business for entrepreneurs.

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The MSME sector is not just the growth engine of India in the age of economic development but have also been responsible for uplifting the artisan class across the country by providing them with government loans, up-gradation of technology and infrastructure development.

The Micro sector that accounts for over 99% of the country’s MSME population includes 630.5 lakh enterprises.  The Small sector includes 3.3 lakh enterprises while the medium sector includes 0.05 lakh enterprises. Additionally, the rural urban ratio of MSMEs is 324.9 lakh enterprises and 309 lakh enterprises in urban areas.

This article will talk about the online MSME registration process, how to apply for MSME registration, step by step guide to complete the MSME registration online process, and provide answers to questions on online Udyam registration.

What is MSME?

MSME stands for Micro, Small and Medium Enterprises, better known by the acronym MSME. This sector plays a crucial role in building a self-reliant India and has a huge impact on India’s by contributing 30% to the country’s GDP, 45% of the manufacturing output, and around 48% of the country’s exports. It is also the major employment generator with more than 11 crore people employed in the MSME sector. The government has urged this sector to further strengthen its backbone and strive to increase its contribution towards GDP by 50% by 2025.

What is the Revised MSMED Act?

As per the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006 definition, all enterprises in the manufacturing and service categories were considered as MSMEs. The aim of this classification was to helped businesses avail various government benefits and get access to multiple government schemes and promotions.

However, on 2 July 2021, Union Minister, Nitin Gadkari, through an amendment announcement, revised the definition for Micro, Small and Medium Enterprises. Under the new definition, both wholesalers and retailers are brought in under the classification of MSMEs. Therefore, all the benefits that were earlier open to MSMEs are now open to wholesalers and retailers as well. There are about 2.5 crore wholesale and retail traders who are expected to benefit from this amendment since the government decided to reinstate them as MSMEs.

New definition of MSME based on investment amount and turnover of the enterprise
Category Investment limit (in ₹) Turnover limit (in )
Micro 1 Crore 5 Crore
Small 10 Crore 50 Crore
Medium 50 Crore 250 Crore

What is Udyam Registration?

MSME or Udyam Registration refers to the registration process that enables classification of any enterprise under the Micro, Small, or Medium category. The registration can be done online simply through self-declaration without submitting any documents.

Upon completion of the registration process, an Udyam Registration Number (URN) and an e-Certificate called Udyam Registration Certificate (URC) are issued to the MSME.

Why is Udyam Registration important for MSMEs?

Udyam registration offers several benefits to MSMEs related to loans, subsidies, interest subvention, loan restructuring, cluster development, subordinated debt, venture capital funding, technology upgradation, solution for delayed payments, trade receivable e-discounting, etc.

Factsheet of MSME (Udyam) Registration
Total Registration Total Classified Micro Small Medium
1,29,53,453 1,28,80,293 1,24,06,74 4,33,782 39,766

Source: Udyam registration platform (

What are the benefits of MSME (Udyam) registration?

Some of the key benefits of MSME registration are:

  • Finance facilities from banks without collateral requirements
  • Central government development schemes
  • Subsidies and government schemes for specific industries
  • Reservation in making of certain products by MSMEs only
  • Concession on bank interest
  • Concession on taxation
  • Protection against delayed payments
  • Preference in government tender procurement
  • Stamp duty benefits
  • Concession in electricity bills and trademark registration
  • Reimbursement of ISO Certification expenses
  • Facility for foreign business expo
  • Upgradation of technology used
  • Capital grant for infrastructure development

Documents required for MSME Registration

The MSME registration documents are as follows:

  • Aadhaar card
  • PAN card

It is important to note that there is no MSME registration fee, and the process does not require any proof of documentation.

Details relating to PAN and GST-linked investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the government databases as the portal is integrated with Income Tax and GSTIN systems.

It may be noted that GST registration is not compulsory for businesses that do not require a GST registration under the GST law. If it is mandatory for enterprises under the GST law, they must enter their GSTIN for obtaining the MSME registration.

Who can apply for Udyam Registration?

As per the revised definition for Micro, Small and Medium Enterprises, all industries under manufacturing, service, wholesale, and retail trade that fulfil the classification criteria of annual turnover and investment for enterprises can apply for MSME registration. Therefore, the eligibility for MSME registration depends on the annual turnover and investment of the enterprise. The entities eligible for MSME udyam registrationi include:

  • Individuals, startups, business owners, and entrepreneurs
  • Private and public limited companies
  • Sole proprietorship
  • Partnership firm
  • Limited Liability Partnerships (LLPs)
  • Self Help Groups (SHGs)
  • Co-operative societies
  • Trusts

How to Apply for MSME or Udyam Registration online?

The MSME registration process can be completed online through the government portal –

The process is quick and hassle-free, paperless and based on self-declaration and is carried out for MSMEs under the Ministry of MSME.

MSME registration can be done under the following two categories

  • For new entrepreneurs who are not registered yet as MSME or those with EM-II
  • For those having registration as UAM or already having registration as UAM through assisted filing

For New Entrepreneurs who are not registered yet as MSME or those with EM-II

You can follow the steps given below to register for Udyam online:

Step 1: Visit the Udyam registration portal.

Step 2: Click on the ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’ option on the homepage.

Step 3: Enter your ‘Aadhaar Number’, and ‘Name of Entrepreneur’ and click on ‘Validate & Generate OTP’.

Step 4: Enter the OTP sent to your registered mobile number linked with the Aadhaar card and click on the ‘Validate’ button.

Step 5: Post Aadhaar validation, the PAN verification page will appear. Enter the ‘Type of Organisation’, ‘PAN’ number and click on the ‘Validate’ button. Select if you have filed your previous year ITR and if you have GSTIN.

Step 6: Enter the details such as the name of the entrepreneur, mobile number, name of the enterprise, location of the plant/unit, address of the enterprise, status of enterprise, bank details, the activity of the unit, NIC code and number of persons employed in the Udyam registration application form that will open.

Step 7: Enter the investment in plant and machinery details and turnover details, select the declaration, and click on the ‘Submit and Get Final OTP’ button.

Step 8: Enter the OTP to submit the form. You will get the Udyam e-registration certificate through email on your registered email id.

Registration for entrepreneurs already having UAM

For enterprises that have UAM registration, this is the process to be followed.

Step 1: Click the button ‘For those having registration as UAM’ or ‘For those already having registration as UAM through assisted filing’ on the home page of Udyam registration portal.

Step 2: A page where Udyog Aadhaar Number is to be entered will open, and an OTP option should be selected.

Step 3: Obtain the OTP on your mobile as filled in UAM or obtain OTP on email as filled UAM.

Step 4: After choosing the OTP Options, click on ‘Validate and Generate OTP’. Fill in your registration details on the MSME registration form and complete the Udyam registration process.

How to print or download MSME registration certificate online

The steps to download the registration certificate online are as follows:

Step 1: Click on the link for ‘Print Acknowledgement’ and fill in the required details to print Udyog Aadhaar / MSME registration certificate.

Step 2: Enter the 12-digit UAM number.

Step 3: Enter your registered mobile number, as per Udyog Aadhaar Certificate

Step 4: Download or print the MSME registration certificate once all details are furnished.

How to Check the status of MSME Registration or Udyam Registration

Follow the steps given below to check your MSME Registration or Udyam Registration:

Step 1: Click on the link for ‘Udyam Verify’.

Step 2: Enter your Udyog Aadhaar number in the box.

Step 3: Enter the Capcha Code.

Step 4: Select the ‘Verify’ option.

Step 5: Check the status of your Udyog Aadhar Registration displayed on the screen.

Also Read: What is MSME cluster development programme?

To sum up

If you are an entrepreneur, you can register on the Udyam portal to access all the benefits available for MSMEs. Once the registration process is complete, you will be eligible to business loans to grow your business. Government-launched MSME schemes that you can consider are Scheme for technology and efficiency up-gradation, Credit Linked Capital Subsidy Scheme, Incubation, etc.

If you need any help on the MSME business loans, you can reach out to our experts at Tata nexarc for guidance on loan eligibility and offers on unsecured business loans.