MSME Registration
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in driving economic growth, innovation, and employment generation. MSME registration is a government-mandated process that provides businesses with official recognition and access to a variety of benefits, including financial support, subsidies, and easier access to credit. Registering as an MSME helps small businesses formalize their operations, gain credibility, and unlock opportunities for growth and development in a competitive market.
Micro, Small, and Medium Enterprises (MSMEs) form the backbone of many economies by fostering entrepreneurship, creating jobs, and promoting innovation. To support these enterprises, governments worldwide have introduced MSME registration, a process that officially recognizes businesses under this category. Registering as an MSME not only legitimizes a business but also opens doors to a range of benefits such as easier access to loans, government subsidies, tax exemptions, and protection against delayed payments.
MSME Classification
MSME Classification is a system that categorizes enterprises into Micro, Small, and Medium segments based on predefined parameters such as investment in plant and machinery or equipment, and annual turnover. This classification helps in identifying the scale of the business and determining eligibility for various government benefits and schemes. Typically, a Micro enterprise involves the smallest investment and turnover limits, followed by Small enterprises with moderate limits, and Medium enterprises with the highest thresholds.
| Type | Investment Limit | Annual Turnover Limit |
|---|---|---|
| Micro | Up to ₹1 Crore | Up to ₹5 Crore |
| Small | Up to ₹10 Crore | Up to ₹50 Crore |
| Medium | Up to ₹50 Crore | Up to ₹250 Crore |
This uniform classification applies to both manufacturing and service enterprises.
Micro Enterprises:
- Investment in plant and machinery or equipment: Up to ₹1 crore
- Annual turnover: Up to ₹5 crore
Small Enterprises:
- Investment in plant and machinery or equipment: More than ₹1 crore and up to ₹10 crore
- Annual turnover: More than ₹5 crore and up to ₹50 crore
Medium Enterprises:
- Investment in plant and machinery or equipment: More than ₹10 crore and up to ₹50 crore
- Annual turnover: More than ₹50 crore and up to ₹250 crore
Note: These thresholds are based on the latest MSME criteria as per the Ministry of Micro, Small and Medium Enterprises.
What is MSME (Udyam) Registration?
MSME Registration is a government-recognized registration process where businesses declare their existence and basic information on the Udyam Registration Portal.
Once registered, the business receives a unique Udyam Registration Number (URN) and a Udyam Registration Certificate.
This registration is entirely online, paperless, and based on self-declaration. No physical documents or proofs are required.
Who Should Register Under MSME?
The following types of enterprises can register:
- Proprietorships
- Partnership Firms
- Limited Liability Partnerships (LLPs)
- Private Limited Companies
- Public Limited Companies
- Hindu Undivided Family (HUF)
- Co-operative Societies
- Trusts
Any enterprise fulfilling the investment and turnover criteria can register under MSME, irrespective of the nature of its business (manufacturing or service)
Benefits of MSME Registration
Access to Government Schemes:
Registered MSMEs can avail various government subsidies, grants, and schemes designed to support growth and innovation.
Easier Loan Approvals:
Banks and financial institutions often offer loans at lower interest rates and with relaxed collateral requirements to registered MSMEs.
Protection Against Delayed Payments:
MSMEs get legal protection ensuring timely payments from buyers and clients, helping maintain healthy cash flow.
Tax Benefits and Exemptions:
Registered MSMEs may be eligible for tax rebates, exemptions, or reduced GST rates.
Priority in Government Tenders:
MSMEs receive special preference in government procurement and tender processes.
Market and Export Support:
Registration opens doors to various export promotion programs, credit facilities, and marketing assistance.
Formal Recognition and Credibility:
Being officially registered adds credibility to the business, aiding in partnerships and customer trust.
Ease of Business Expansion:
Access to training programs, technology upgrades, and innovation support helps MSMEs scale efficiently.
Documents/Details Required for MSME Registration
The MSME Registration is based on self-declaration. You don’t need to upload documents, but you must have the following information handy:
Aadhar Card (of the business owner or authorized signatory)
PAN Card (of the business or owner)
Business Name and Type (proprietorship, partnership, company, etc.)
Address Proof of the Business (electricity bill, rent agreement, or lease deed)
Bank Account Details (cancelled cheque or bank statement)
Investment Details (in plant, machinery, or equipment)
Annual Turnover Details (if applicable)
Date of Commencement of Business
Contact Details (phone number, email ID)
Step-by-Step Process for MSME Registration
The MSME registration process can be completed online through the Udyam Registration portal. The following are the steps involved in the registration process:
- Visit the Official Portal: Go to the Udyam Registration portal, the official website for MSME registration in India.
- Aadhaar Verification: Enter the Aadhaar number of the business owner or authorized signatory. OTP verification will be required.
- PAN and GST Linking: Enter your PAN number and GSTIN (Goods and Services Tax Identification Number), if applicable. As per the latest guidelines, GST details are required only if the enterprise is liable to be registered under GST as per GST laws.
- Fill in Business Details: Provide the name of the enterprise, type of organization, address, bank account information, and business activity (NIC Code).
- Enter Investment and Turnover Details: Declare the total investment in plant and machinery/equipment and the annual turnover of the business.
- Submission and Verification: Carefully review all the provided information and submit the application. Upon successful verification, you will receive your Udyam Registration Certificate via email.
- Download the Certificate: You can download the certificate from the Udyam Registration Portal by entering your Udyam Registration Number (URN) and mobile number.
MSME Registration Renewal & Updates
- No Renewal Required: MSME registration is valid for a lifetime unless cancelled.
- Updation of Details: Enterprises must update information related to turnover and investment whenever there is a change.
Steps to Download MSME (Udyam) Registration Certificate:
Visit the Official Udyam Portal
Go to: Udyam Registration portal
Click on Print/Verify on the Menu
On the homepage, you’ll find an option labelled Print/Verify → Click on “Print Udyam Certificate.
Enter Your Details
You’ll be redirected to a new page where you need to enter:
- Udyam Registration Number (URN)
- Mobile Number (linked with Aadhaar used during registration)
- Select the OTP option (Email or Mobile)
Generate OTP and Verify
- Click on Validate & Generate OTP → Enter the OTP received.
- Once verified, you’ll be able to access your certificate.
Download and Save the Certificate
- After verification, your Udyam Registration Certificate will appear on the screen.
- Click Print or Ctrl+P and choose Save as PDF to download it.
Important Note:
- Make sure to use the same mobile number that was used during the registration.
- If you have forgotten your Udyam number, use the Forgot Udyam Registration Number option available on the site.
What is MSME (Udyam) Registration Number?
The MSME Registration Number, officially called the Udyam Registration Number (URN), is a unique 16-digit alphanumeric code issued by the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, after successful registration on the Udyam Portal.
This number is a proof of registration and is required to avail government benefits, schemes, and subsidies applicable to MSMEs.
Where to Find Your MSME Registration Number?
- It is mentioned on the Udyam Registration Certificate issued after registration.
- You also receive it via email/SMS after successful registration.
How to Recover Forgotten MSME (Udyam) Registration Number?
Go to: https://udyamregistration.gov.in/Udyam_Login.aspx
Click on Forgot Udyam Registration Number
Enter your Mobile Number and Email ID used during registration
You will receive your URN on your registered mobile/email
Why is MSME Registration Number Important?
- Required to avail MSME schemes and government subsidies
- For applying tenders reserved for MSMEs
- To access MSME loan and credit facilities
- For legal protection against delayed payments
Frequently Asked Questions on MSME Registration
What is MSME registration?
MSME Registration is a government registration process for Micro, Small, and Medium Enterprises under the Udyam Registration Portal, providing a unique Udyam Registration Number and Certificate to avail benefits under various schemes.
Is MSME Registration mandatory?
No, MSME Registration is not mandatory, but it is advisable for businesses to register in order to access government benefits, subsidies, and schemes.
What is Udyam Registration?
Udyam Registration is the updated online process for MSME registration introduced by the Government of India from 1st July 2020, replacing the earlier Udyog Aadhaar system.
Who can apply for MSME Registration?
Any individual or entity - including proprietorships, partnerships, LLPs, companies, societies, or trusts - engaged in manufacturing or service activities, can apply if they meet the investment and turnover criteria.
What are the investment and turnover limits for MSME classification?
| Type | Investment Limit | Annual Turnover Limit |
|---|---|---|
| Micro | Up to ₹1 Crore | Up to ₹5 Crore |
| Small | Up to ₹10 Crore | Up to ₹50 Crore |
| Medium | Up to ₹50 Crore | Up to ₹250 Crore |
Is GST mandatory for MSME Registration?
No, GST is not mandatory for MSME Registration unless your business is required to be registered under GST as per applicable laws.
Is Aadhaar mandatory for MSME Registration?
Yes, Aadhaar of the proprietor, partner, or authorized signatory is required for MSME Registration.
Can traders apply for MSME Registration?
Generally, trading activities are not eligible under MSME Registration. The benefits are available for manufacturing and service-based enterprises.
How can I apply for MSME Registration?
You can register online through the official portal: https://udyamregistration.gov.in
Is there any government fee for MSME Registration?
No, MSME Registration is completely free and no charges are applicable on the government portal.
What documents are required for MSME Registration?
No documents need to be uploaded. However, you need:
- Aadhaar Number
- PAN of the Business
- Bank Account Details
- Business Activity Details
Can an enterprise have more than one MSME Registration?
No, an enterprise is allowed only one Udyam Registration Number, but it can add multiple activities or branches under the same registration.1
How can I check the status of my MSME Registration?
You can check by logging into the Udyam Portal and using the Print/Verify Udyam Certificate option.
How can I download my MSME Registration Certificate?
By visiting the Udyam Portal → Click Print Udyam Certificate → Verify with OTP → Download the certificate.
What is the validity of MSME Registration?
MSME Registration is valid for a lifetime, subject to regular updates if there are changes in business information.
How to update MSME Registration details?
Log in to the Udyam Portal with your registered mobile number and update the details using the Update Udyam Registration option.
.What are the benefits of MSME Registration?
- Collateral-free loans
- Subsidies and rebates
- Protection against delayed payments
- Preference in government tenders
- Concessions in utility bills and taxes
How to recover a forgotten MSME Registration Number?
Use the Forgot Udyam Registration Number option on the portal and retrieve it using your registered mobile number and email ID.
Can foreign nationals or foreign companies register as MSMEs in India?
Only Indian entities or individuals can register under MSME in India. Foreign companies operating in India may qualify if registered as per Indian laws.
Is MSME Registration applicable for startups?
Yes, startups engaged in manufacturing or services can register under MSME if they meet the investment and turnover limits.