MSME (Micro, Small and Medium Enterprises) Registration Process and Benefits

What is a Micro-Enterprise?

An enterprise indulged in the Manufacturing and Production industry, whose investment in plant and machinery does not exceed Rs. 25 Lakh.

An enterprise providing services whose investment in plant and machinery does not exceed Rs. 10 Lakh.

What is a Small Enterprise?

An enterprise indulged in the Manufacturing and Production industry, whose investment in plant and machinery is more than Rs. 25 Lakh but does not exceed Rs. 5 Crore.

An enterprise providing services whose investment in plant and machinery is more than Rs. 10 Lakh but does not exceed Rs. 2 Crore.

What is a Medium Enterprise?

An enterprise indulged in the Manufacturing and Production industry, whose investment in plant and machinery is more than Rs. 5 Crore but does not exceed Rs. 10 Crore.

An enterprise providing services whose investment in plant and machinery is more than Rs. 5 Crore but does not exceed Rs. 10 Crore.

Benefits of registering a business as an MSME

1. The Government of India has made collateral-free credit available to all small and micro-enterprises.

2. A hefty 50% subsidy is given to the Enterprise that has the certificate of registration granted by MSME.

3. MSME can avail a benefit of 1% on the Over Draft as mentioned in a scheme that differs from bank to bank.

4. Eligible for a subsidy for Industrial Promotion as suggested by the Government.

5. Concession on electricity bills is available to all the Enterprises that have the MSME Registration Certificate. This can be availed by providing an application to the department of electricity along with the certificate of registration by MSME.

6. The registered MSME enterprises can claim the reimbursement of the expenses that were spent for the ISO (International Organization for Standardization) certification.

How to Register as MSME?

Documents required

1. Aadhar Card

2. PAN Card

3. GSTIN (Goods and Service Tax Identification Number)

To open the UDHYAM website for registration as MSME click here and follow the below steps.

STEP 1- Aadhar Verification

Enter your Aadhar Number and Name as registered in the Aadhar Card. Tick on the check box as given at the end of the page in the image and then click on “VALIDATE AND GEENRATE OTP”.

STEP 2- PAN Verification

From April 1, 2021, a PAN card is compulsory for registering as MSME.

Select the type of organization of your business. Choose YES for “Do you have a PAN Card”. Fill in the details of PAN Card as shown in the image and tick the check box. Then fill in the details for Income Tax Return.

If PAN already exists in Udyam Registration then Message will appear “Udyam Registration has already done through this PAN” as shown in the image. Click on “VALIDATE PAN” to proceed further with the process.

STEP 3- Registration Details

A screen as shown in the images below will appear. Fill in the details so required.

Click on SUBMIT & GET FINAL OTP. Fill in the details after OTP and verify them.

After Successful Registration “Thank You” message will appear with the Reference Number as shown in the image above. This reference number will active for print after the update of Income-tax data and export data from GSTN (If Exporter).