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Does your business belong to a Micro, Small and Medium Enterprises (MSMEs) sector? Is your business registered as an MSME? If you have not completed MSME registration for your business, there are several benefits and opportunities you are missing out on. It is a straightforward process, and in this article we will briefly talk about the benefits of MSME registration, the process of registration and documents required for MSME registration.

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Firstly, let’s understand what MSME/Udyam registration is.

What is MSME registration?

MSME or Udyam registration is to certify that the said enterprise falls in the category of MSMEs. This is an e-Certification that can be obtained through an online process. Upon successfully completing the registration process, you will receive the Udyam Registration Number (URN) and a certificate called  Udyam Registration Certificate (URC).

The Udyam registration process is based on self-declaration, is paperless, and requires minimal documentation to keep it simple, easy, and quick.

Who can obtain MSME registration certification?

According to the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006 any manufacturing enterprise and enterprise rendering services meeting the below criteria can register their business under Udyam. In July 2021, MSMED Act was revised, and retailers and wholesalers were also brought under the classification of MSMEs.

As a result, manufacturing enterprises, enterprises rendering services, retailers and wholesalers meeting the following criteria can now be considered as MSME and are eligible to obtain MSME registration/Udyam certification.

Category Investment limit Turnover limit
Micro ₹1 Crore ₹5 Crore
Small ₹10 Crore ₹50 Crore
Medium ₹50 Crore ₹250 Crore

There is no restriction on the type of the company. The following types of organisations are eligible to apply for MSME registration.

  • 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

So, if your business fits any of these criteria, you can visit the Udyam portal to register your business and get your MSME Udyam e-certificate.

Why should you obtain MSMEs registration certificate?

You can avail several benefits if you have obtained MSME registration certificate. When you have a MSME registration certificate, it is easier for you to:

  • Avail various government schemes meant for MSMEs
  • Obtain finance from banks
  • Avail tax concessions
  • Avail concessions on bank interest rates
  • Preference in government tender process
  • Reimbursement of ISO certification expenses
  • Avail facility for foreign business expo
  • Upgrade technology used
  • Avail capital grant for infrastructure development

What are the list of documents required for MSME registration in India

All you need to upload is Aadhaar card and PAN Card details for MSME registration on Udyam portal. Here is an exhaustive list that suggests requirements of documents as per type of the company.

Documents required for MSME registration for partnership firms:

  • Aadhaar cards of managing partners
  • PAN Card

Documents required for MSME registration for company:

  • Aadhaar cards of authorised signatory
  • PAN Card

Documents required for MSME registration for LLP (Limited Liability Company)

  • Aadhaar cards of authorised signatory
  • PAN Card

Documents required for MSME registration for Hindu Undivided Family (HUF)

  • Aadhaar cards of karta
  • PAN Card

Documents required for MSME registration for Private limited company

  • Aadhaar cards of authorised signatory
  • PAN Card

Documents required for MSME registration for cooperative society/trust/self-help groups, etc.

  • Aadhaar cards of authorised signatory
  • PAN Card

Note: Government does not charge any sort of registration fee for MSME registration.

Moreover, Udyam registration portal is integrated with Income Tax and GSTIN systems. As a result, details related to PAN, GST-linked investment and turnover of the company are directly accessed from the available government databases.

Do you need Udyam Registration in case your business is already registered under UAM or EM-II?

The answer is yes. The registration was known as Udyog Aadhar Registration (UAM) prior to Udyam and EM-II certification even before that. All businesses with UAM or EM-II registration need to re-register on the Udyam portal.

How to obtain MSME registration certificate if your business is already registered under UAM or EM-II?

  • Visit Udyam registration portal and click on ‘For those having registration as UAM’ or ‘For those already having registration as UAM through Assisted filing’
  • Enter Udyog Aadhaar Number when prompted in the next page
  • Select OTP option – You can receive OTP on mobile number or email id registered during UAM process
  • Click on ‘Validate and Generate OTP’
  • Enter your registration details on the form and completer the MSME registration process

How can new entrepreneurs or businesses to obtain MSME registration certificate?

  • Visit Udyam registration portal and click on ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’
  • Fill in details such as entrepreneur’s Aadhaar number, name of the entrepreneur and then click on ‘Validate & Generate OTP’
  • Enter OTP (you will receive the OTP on the mobile number that is linked with your Aadhaar card) and click on ‘Validate’
  • Update further details (once Aadhaar is validated) such as Type of Organisation and PAN Number, declaration on Income Tax Returns (ITR) filed in previous year, or if you have Goods and Services Tax Identification Number (GSTIN) etc.
  • Fill in additional details such as name of the entrepreneur, name of enterprise, mobile number, address of the enterprise, status of the enterprise, bank details, business activity, National Industrial Classification (NIC) code and number of employees
  • Update information about investment in the plant and machinery, turnover, select declaration and click on ‘Submit and Get Final OTP’ button
  • Enter the OTP received to get your Udyam registration e-certificate copy on your registered email id

Closing remarks:

MSME or Udyam registration offers multiple benefits to enterprises. Moreover, the procedure to seek e-certificate is easy, one does not need any exhaustive list of documents for the same. Hence, it is beneficial for MSMEs to obtain Udyam registration certificate.

Anurag Srivastava

Anurag is a seasoned SEO professional and writer by heart, with 4 years of experience crafting content for B2B businesses. He is helping them understand the complexities of business growth. His informative writing empowers businesses to understand the topic better and grow in the B2B landscape.