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With 63.4 million units in the country, many regard the Micro, Small and Medium Enterprises (MSME) sector as the backbone of India’s socio-economic development. MSMEs contribution to India’s GDP across the manufacturing sector (6.11%) and services sector (24.63%) is significant and has been instrumental in building a resilient, innovative, and growth-driven sector (Source: IBEF). To enable more MSMEs accelerate their growth and keeping to India’s digital transformation initiative, MSME registration via the Udyam portal is an easy, quick, online process.

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There are benefits of MSME registration online, especially when it comes to low-interest MSME loan schemes, subsidies and exemptions. We’ll take a look at the MSME registration process, eligibility and documents required to apply, and the MSME registration fees involved.

MSME registration: Key highlights

Before we understand how to register your business as a MSME, here are some of the key points to keep in mind:

  • Your business must meet the new MSME classification criteria based on investment and annual turnover to be eligible for the registration process
  • MSME registration is not mandatory but beneficial for businesses as it enables the business to avail specific tax exemptions, subsidies, credit facilities etc. (Also read: Tax benefits and subsidies for MSMEs)
  • This is an online process via the Udyam portal with basic documentation (PAN and Aadhaar)
  • There are no MSME registration fees, i.e., it’s free registration for all eligible MSME businesses

MSME (Udyam) registration numbers in 2024

Before we delve into the MSME Udyam registration process, here are some latest number from the portal on the same.

Updates on MSMEs in India (registered):

Total registration Total classified Micro Small Medium Total employment
2,45,90,993 2,45,31,085 2,38,65,305 6,10,225 55,555 16,18,41,704

*Source: Udyam portal (udyamregistration.gov.in), March 2024

In the sections below, we will first understand the MSME registration procedure and then take a brief look at the eligibility criteria, documents required, fee details, and clear doubts on whether MSME registration and Udyam registration are the same.

How to apply for MSME registration online?

To register your business as a MMSE you must visit the Udyam portal. Through self-declaration with minimum documentation, MSMEs can register on the portal and complete the MSME Udyam registration process. An e-Certificate or Udyam registration certificate will be generated which can easily be downloaded. The Udyam portal is linked to other government portals (namely Income Tax) and can easily fetch GST, turnover, investment and other relevant data from the portals.

Note:

  • Businesses under Udyog Aadhaar can re-register and migrate
  • Businesses with UAM or EM-II will have to re-register on Udyam
  • Registration on the portal has to be done only once

To apply:

  • Visit the online Udyam portal: udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
  • Select the MSME/Udyam registration process applicable to you: For new entrepreneurs or for migration (re-registering) to Udyam

Let’s take a look at how to register on Udyam for the first time.

Udyam registration for new Entrepreneurs who are not Registered yet as MSME or those with EM-II

The MSME free registration process is a paperless, online system, based on self-declaration. Simply, follow the steps below:

  • Scroll the homepage and click on the registration section for ‘For new Entrepreneurs who are not Registered yet as MSME or those with EM-II’
  • View the Udyam Registration Form page: udyamregistration.gov.in/UdyamRegistration.aspx
  • Enter your Aadhaar Number and ‘Name of Entrepreneur’ that is, your name as per Aadhaar card
  • Ensure the consent check box is checked
  • Click on ‘Validate and Generate OTP’ button at the end of the page to get OTP on your mobile number (same as the mobile number linked with Aadhaar)
  • Enter the OTP received and validate the profile with Aadhaar
  • Enter your PAN card number and type of organisation on the new page for PAN verification (Note: Select if you have filed ITR for previous year and have a valid GSTIN)
  • Click Validate
  • Enter additional details about your organisation in the application form: Name of entrepreneur, mobile number, name of the enterprise, location of the plant, address, bank details etc.
  • Add details on investment in plant and machinery and annual turnover and submit the form
  • Fill in the final OTP for verification
  • Check for confirmation of registering your business as a MSME on Udyam portal

MSME clarification on selection of financial year for Udyam registration:

The MSME Ministry has clarified that for FY 2020-21, data from FY 2-18-19 was auto populated for Udyam registration. This is considered as frozen data.

This was done to ensure proper MSME classification was being implemented. The Udyam portal is interlinked with the Income Tax portal and can automatically fetch relevant turnover and investment years from the portal.

Udyam re-registration: For those already having registration as UAM

For those enterprises that have UAM number, the MSME registration online process is as follows:

  • Visit the Udyam homepage and scroll down to the registration section
  • Under ‘You can Migrate to Udyam (Re-Register) here’, select the correct option
  • Select ‘For those already having registration as UAM’ if you already have UAM number: udyamregistration.gov.in/UdyamRegistrationExist.aspx
  • Click on ‘For those already having registration as UAM through Assisted filling’ if this is more suitable: udyamregistration.gov.in/Udyam_AssistedMigration.aspx

In both cases, you will have to begin by entering your Aadhaar number and then verifying details via email or phone (as filled in UAM). Click on the button to get OTP and verify details.

The following steps are similar to new business registration process where you have to fill in specific details and your business will be migrated to Udyam.

How to print or download MSME registration certificate online?

Once you complete the MSME registration online process, you can download your e-Certificate with your MSME registration number. You can read about how to download MSME certificate in detail, but here’s a snapshot of the process:

  • Visit the Udyam homepage and hover over the ‘Print/Verify’ option on the main navigation
  • Click on ‘Print Udyam Certificate’
  • Enter your Udyam registration number, mobile number and validate using OTP

The Udyam certificated thus generated will contain your 19 digit URN and also a QR code via which details about the MSME can be accessed.

Can e-Commerce platforms register on Udyam?

E-Commerce businesses can register their businesses on the Udyam portal for a MSME registration certificate.

The Udyam portal lists e-Commerce as a separate business activity. Once an e-Commerce business is registered on Udyam portal and gets its certificate, it can leverage specific benefits, subsidies, and exemptions.

What documents are required for MSME registration?

As mentioned earlier, the MSME registration online process is a paperless process and requires minimum documents.

The basic documents for MSME registration are (note, you do not have to upload them):

  • Aadhaar card
  • PAN card

You will however need to keep other business related documents handy as you will have to self-declare details during filling up the Udyam Registration Form.

Note: GST registration is not mandatory if your MSME does not fall below the GST registration limit threshold. If yes, then GST registration and GSTIN will be required to be filled in for Udyam registration.

What are the MSME registration fees?

Udyam registration is a zero-cost service. As a MSME you do not have to pay any fees to register on the portal.

However, if you are availing the services of a professional to help you with MSME registration you may have to pay service charges to the professional.

Udyam registration impact in the employment and economic growth

There are several benefits that MSMEs beget with a MSME registration certificate. Apart from the general exemptions and subsidies, the greatest benefit is building credibility.

MSMEs often struggle to prove their value and build trust among potential customers. With a MSME certificate, it can showcase its authenticity and build trust in customers. In the state of Rajasthan for instance, a similar process of generating a Business Registration Number (BRN) registration is also prevalent that allows a business to verify its existence.

Apart from this, some of the general economic and employment related benefits of Udyam registration are:

  • Access to central government loan and subsidy schemes
  • Concession on taxes and bank interest rates
  • Exemption from paying EMD in government tendering process
  • Protection against delayed payments via the MSME Samadhaan portal
As a MSME business owner, if you are looking to grow your business, register on Tata nexarc today. We are a B2B platform for MSMEs and offer affordable solutions to accelerate growth. We have partnered with trusted service providers in the country and offer a wide range of services across steel procurement, logistics, tenders and more. Register today to explore more.

Note: This article is for informational purposes only. It was originally published on 9 Jan 2023 and has been updated on 1 April 2024 to keep it relevant. Readers are requested to visit the government website for more details.