Home / MSME Registration

Updated on 26-Aug-2021   06:50 AM IST | 4 min read

What is MSME Registration?

MSME stands for Micro, small & medium enterprises. As per the government, it is not mandatory to get registered under MSME or to go for MSME registration online but it is suggested that small & medium enterprises should go for it as it can provide you various benefits in the form of business set up, taxation, credit facilities, loans etc. Micro, small and medium enterprises (MSME) involved in manufacturing or service area can obtain registration under the MSME act.

Who should apply for Udyog Aadhaar Registration?

Any type of business entity can obtain Udyog Aadhaar registration online such as sole proprietors, Partnership firms, HUF’s, Public limited companies, Private limited companies, Limited Liability partnerships, One person companies, Co-operative societies, Production companies, any AOP’s, other undertakings etc.

In order to obtain the MSME registration, there is a set specified criterion that a business entity needs to meet in order to classify themselves as Micro, small and medium enterprises (MSME). There is a lot of paper work you need to do at the time of starting a business and getting MSME or SSI registration through the manual process. Therefore, it is advisable that you can now easily do the MSME registration online and can obtain an MSME certificate.

Now, Udyog Aadhaar registration/MSME registration is completely an online process and after registration, you can avail various government benefits such as easy loan approvals, subsidies etc.

New Udyog Aadhaar replaces SSI / MSME Registration

As per the gazette notification from the government dated 18.09.2015, the Micro, small and medium enterprises (MSME) registration process is replaced by the new Udyog Aadhaar registration. The New Udyog Aadhaar registration process is a very simple one-page format as compared to the complex registration process used by businesses before. Any individual having Aadhaar number can register for Udyog Aadhaar registration at the UAM portal online. The following details are required at the time of registration –

  1. Owner’s name
  2. Enterprise name
  3. Organization type (Sole proprietorship, Partnership firm, HUF, Public limited company, Private limited company, LLP etc.)
  4. Social category (GEN/SC/ST/OBC)
  5. Date of commencement of business
  6. Postal address
  7. Bank details (Account number & IFSC code)
  8. NIC code
  9. DIC details
  10. Major activity (Manufacturing/Service)
  11. Previous registration details (If applicable)
  12. Total person employed
  13. Investment in Plant & Machinery equipment
MSME/SSI Registration

Documents required for MSME Registration Online

The documents required for MSME registration are as follows -

  • Aadhaar card
  • Rent agreement
  • Property paper
  • Cancelled Cheque
  • Company Registration i.e., Sale or Purchase Bill and PAN card
  • Business Address Proof

For self-owned premise: Lease deed, property tax receipt, possession letter, allotment letter, etc.

For rented premise: NOC from the landlord, rent receipts, utility bills or document evidencing the landlord’s ownership, etc.

The charges to get an MSME certificate are Rs. 1999 (all-inclusive) per certificate and can be paid by their secured gateways.

Additional Documents required for MSME registration

  • Copies of Sale and Purchase Bills
  • Partnership Deed
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Copies of Licenses and Bills of Machinery Purchased

Benefits of MSME Registration

Udyog Aadhaar registration is a very simple process by which an enterprise can easily obtain their MSME certificate online. Previously, you need to do lots of paperwork in order to obtain MSME registration. Now, the new online process is well-organized & systematized and providing enterprises with the maximum benefits. Hence, there are many benefits of obtaining Udyog Aadhaar registration which are as follows –

ACCESS TO TENDERS

For most of the business tender applications, one of the desired eligibility criteria is MSME/SSI registration as many government tenders open only to MSME’s to promote small business participation.

TAX REBATES

Business registered as MSME/SSI will get multiple benefits from the government such as tax subsidies, Capital investment subsidies etc.

CHEAPER INTEREST RATES

Interest rates offered to Micro, small and medium enterprises (MSME) registered businesses on loan is 1-1.5% cheaper than the normal interest rate.

FAST APPROVALS

In terms of govt. licenses and certifications, the business registered under MSME/SSI has been given high preference and get fast approvals from the state and govt. regulatory bodies.

EASY ACCESS TO CREDIT

As per the mudra scheme by PM Modi, You can easily get loans without collaterals.

REDUCED COST INFRASTRUCTURE

The MSME/SSI registered businesses receives various benefits such as cheaper electricity charges, VAT exemptions etc. Other business services like patents are also cheaper for registered MSME’s.

How has Udyog Aadhaar simplified the process of registration for the MSME?

The Introduction of Udyog Aadhaar has simplified the process of MSME registration and now it becomes easy for the enterprises to do Udyog Aadhaar registration online as compared to the previous process of MSME/SSI registration. Aadhaar Udyog registration simplifies the MSME registration process in the following ways –

One page simple registration form. Multiple UAM’s can be filed free of cost. No supporting document required as it is a self-declaration. The framework provides revival & rehabilitation of MSME’S easy online process.

What are the Micro, Small and Medium Enterprise (MSME)?

MSME’s are classified into three enterprises - Micro enterprises, Small enterprises and Medium enterprises. It is your total investment amount that differentiates your business between Micro, small and medium enterprises.

Classification Total Turnover
Micro Enterprise Upto Rs. 5 Crores
Small Enterprise Rs. 5 Crores to Rs. 75 Crores
Medium Enterprise Rs. 75 Crores to Rs. 250 Crores

Micro Enterprises

In case you are a manufacturing or a service enterprise and having an investment of less than Rs.1 Crore and turnover of less than Rs.5 Crore, your enterprise will be considered as a micro enterprise. Micro enterprises have less amount of capital in comparison to small & medium enterprises and less than 10 individuals to work for them.

Small Enterprises

In case you are a manufacturing or a service enterprise and having an investment of less than Rs.10 Crore and turnover of less than Rs.50 Crore, your enterprise will be considered as a small enterprise. Small enterprises have more amount of capital than micro-enterprises but less amount of capital than medium enterprises. Sole proprietorship, small companies or small organizations are the perfect examples of small enterprises. A small enterprise workforce ranges between 10 individuals to 50 employees.

Medium enterprises

If you are a manufacturing or a service enterprise and having an investment of less than Rs.20 Crore and turnover of less than Rs.100 Crore, your enterprise will be considered as a medium enterprise. Medium enterprises have more amount of capital in comparison to micro and small enterprises. A medium enterprise comprises less than 250 people and as enterprises progress by earning more income, the need for more capital and workers also arises to fulfil its business requirements.

Registration Process of Micro, small and medium enterprises (MSME)

Every company has its own procedure for the MSME/Udyog Aadhaar registration but FinacBooks makes it very easy for their clients. Obtaining quick, complete information, document preparation, verification and a fast approval process is what we believe in. There is no need for your Physical presence as everything will be done online.

Step by Step MSME/SSI registrations process is as follows -

  • Step 1 : Complete the required information needed in MSME/SSI registration form. It includes your personal information as well as your business information.
  • Step 2 : As per the details provided, we will start preparing your documents accordingly and it will take around 1-2 working days.
  • Step 3 : In the third step, our experts will verify your documents properly and submit the same along with the application form to the MSME registrar for approval and it will take around 2 working days.
  • Step 4 : In the last and the fourth step, your application will be approved by the MSME registrar and the certificate will be issued to you. We will send you the certificate via e-mail & courier.

There are Two Types of Udyog Aadhaar Registration Process

New Udyog Aadhaar Registration with Aadhaar

  • Step 1 : You will enter your Aadhaar number.
  • Step 2 : You have to enter your name. You need to write the name same as written on the Aadhaar card.
  • Step 3 : Click on the button “Validate and Generate OTP”.
  • Step 4 : You will receive an OTP on your registered mobile number (registered with UIDAI). If your mobile phone number is not registered, then you need to follow the instructions displayed on the website.
  • Step 5 : The applicant needs to choose the social category (General, scheduled cast, scheduled tribe, OBC etc.). If you belong to SC, ST or OBC category, then you need to submit proof of the same.
  • Step 6 : The applicant needs to choose his or her gender.
  • Step 7 : If the applicant is physically handicapped, then he can select this option in the seventh step.
  • Step 8 : If the applicant is physically handicapped, the applicant needs to mention the name of his enterprise.
  • Step 9 : The enterprise needs to select the organization type.
  • Step 10 : In the case of Limited Liability Partnership, private limited, Public Limited or Cooperative enterprise, you need to enter the PAN number in the tenth step.
  • Step 11 : You have to click on the add plant button. The applicant can add various plant locations.
  • Step 12 : The applicant needs to enter the complete address of the enterprise including e-mail, mobile number, pin code, district and state in the twelve step.
  • Step 13 : The applicant needs to mention the date of commencement of business.
  • Step 14 : The Fourteenth step asks for previous details of registration (if any). If the enterprise of the applicant is already issued a valid EM-I/II, under the MSMED act 2006 by the concerned general manager. He or she needs to enter that number in the required field.
  • Step 15 : The applicant needs to mention his or her bank account number. The applicant also needs to provide the IFSC code of the bank.
  • Step 16 : The applicant needs to enter the major Activity of the business such as manufacturing or services (whatever it is).
  • Step 17 : The applicant can select various NIC codes to include all the activities performed by them.
  • Step 18 : The applicant needs to enter the number of employees in the eighteenth step.
  • Step 19 : The applicant needs to mention the total investment made in plant or machinery or equipment in the nineteenth step.
  • Step 20 : Applicant needs to enter the DIC location based on enterprise location.
  • Step 21 : You have to generate the OTP and for that, you have to click on the submit button.
  • Step 22 : The applicant needs to enter the OTP and the final Captcha. Then, finally, click on the submit button to complete the procedure.

New Process for the Micro, small and medium enterprises (MSME) Registration Online

  • Step 1 : The applicant needs to enrol him or her for the Aadhaar by going to the Aadhaar enrollment center. Till the Aadhaar is issued to the individual, the following documents are given below are used to continue the procedure of registration -
  • Step 2 : Copy of the Aadhaar enrollment slip or Copy of the Aadhaar slip for aadhaar enrolment

For the Aadhaar enrollment, a copy of the following documents are needed - Employee Photo identity card, PAN card, driving license, passport, Voter ID card or bank photo passbook. After following this procedure, you can easily continue your business with MSME/SSI certificate.

Eligibility for the Micro, small and medium enterprises (MSME) Registration

The eligibility for Udyog Aadhaar/MSME registration depends upon the total investment made by the enterprise in plant & machinery under the manufacturing sector or equipment under the service sector. There is a limit specified in both manufacturing and service sector for micro, small and medium enterprises which are as follows -

Industry Manufacturing Sector Service sector
Micro Enterprise Investment upto Rs.25 lakhs in Plant & Machinery Investment upto Rs.10 Lakhs in equipment
Small enterprise Investment b/w Rs.25 Lakhs to Rs.5 Crores in Plant & Machinery Investment b/w Rs10 Lakhs to Rs.5 Crores in equipment
Medium Enterprise Investment b/w Rs.5 crores to Rs.10 crores in Plant & machinery Investment b/w Rs. 2 crores to Rs.5 crores in equipment.

Information Required for the MSME Registration

  • Name of the Entrepreneur/Applicant – In order to obtain Udyog Aadhaar new registration, the first thing you need to do is enter your name as mentioned on the Aadhaar card in the MSME registration form.
  • Aadhaar number – Enter your 12 digit Aadhaar card number issued by UIDAI.
  • PAN card - Enter your PAN card number in the required field.
  • Gender – Choose your gender – Male or Female
  • Mobile number – Enter your registered mobile number in the MSME registration form.
  • E-mail ID – Enter your registered E-mail ID in the required field.
  • Social category – Choose your social category among General/SC/ST/OBC.
  • Physically handicapped – In case you are a physically handicapped person, you must choose the option of the physically handicapped or disabled person in the MSME registration form.
  • Name of Enterprise – Enter the full name of your enterprise correctly. An applicant having more than one Enterprise can apply for multiple Udyog Aadhaar (One for each enterprise) using the same Aadhaar number. For ex – Enterprise 1 or Enterprise 2.
  • Type of Organization – Enter the type of business or legal entity you are operating as a business (Sole proprietorship, Partnership firm, HUF, LLP, Public limited company, private limited company, Co-operatives, others)
  • Date of commencement of business – Commencement date means the date on which you started your business operations.
  • Plant location – Place where you are manufacturing something or a factory.
  • Office Address – For better communication, kindly provide the postal address of your business along with the contact number & E-mail Address.
  • Bank Account number – Kindly provide your bank account number given on the Cheque book and passbook of the concerned bank.
  • IFSC code – Kindly provide your IFSC code of the concerned bank (Given on the cheque book as well as passbook of the bank)
  • Main business activity – Mention key area of your business activity such as manufacturing or service.
  • NIC - The 2 digit code - You must enter your national industrial classification code mentioned in the National industrial classification handbook. A single applicant might select multiple NIC codes to include all of its activities.
  • NNumber of employees – Details about the number of employees employed by you in your enterprise
  • Additional details about business – Kindly provide additional details related to your business (If applicable).
  • Total investment made in Plant & Machinery – Kindly provide the total amount which you invested in your business in terms of Machinery & Equipment.
  • Scanned Copy of Aadhaar card – Kindly provide a scanned copy of Aadhaar card. It should be clear enough and easy to read.
Required Documents For Udyog Aadhaar Registration

Current Account Opening

Current account opening is necessary for business owners as there are lots of transactions they need to do on regular basis in order to run their business. It is a kind of deposit account that helps business owners to do regular transactions continuously without any hassle. There are various benefits which businessmen can avail by making online current account –

  • Customized features
  • Unlimited transactions such as deposits & withdrawal transactions.
  • Online banking services such as Internet & mobile banking.
  • Overdraft Facility etc.

Nowadays, there are many banks that provide online current accounts for businessmen, which are opened at zero balance in a quick time without any fees.

What is UAM (Udyog Aadhaar Memorandum)?

Udyog Aadhaar Memorandum (UAM) is a simple registration form to prove the MSME’s existence, as well as mandatory details such as owner’s Aadhaar card number, Bank details and Personal details is provided at the time of filling a form online. After filling & submitting the form, you will receive an acknowledgement on your registered E-mail ID containing the Udyog Aadhaar number which you can use as a reference to all your future communications in relation to Udyog Aadhaar registration. No supporting documentation is needed as it is a self-declaration form but it may be requested by the state or central authority as information proof in the UAM registration form.

If any of the enterprise already filed for EMI-1 or EMI-2 or both or the current holder of small scale industry registration before the introduction of the MSME act 2006, there is no need to file Udyog Aadhaar Memorandum (UAM). Enterprise can also file multiple UAM’s with the use of the same Aadhaar number if they desire to as there is no limitation on it.

Various Schemes for the Micro, small and medium enterprises (MSME) in India

There are various MSME schemes launched by the government of India -

  • Udyog Aadhaar Memorandum

    A aadhaar card is a mandatory requirement for all individuals who want to register under this scheme. After registering under this scheme, you can easily avail credit, loan facility as well as subsidies from the government. This process can be done both online & offline.
  • Quality management standards & quality technology tools

    Registering under this scheme will help MSME’s to understand and maintain the specified quality standards with the help of new technology. In this scheme, seminars as well as activities, are conducted to tell businesses about the introduction of new technology in the market.
  • Zero defects Zero effect

    The Enterprise involved in the export of manufacturing goods must adhere to the standards specified so that the goods will not get rejected or sent back to India. In order to achieve this aim, a zero defect zero effect scheme has been launched by the government of India. As per this scheme, if the goods are exported, they may get entitled to a rebate & concession. This scheme also raises the level of quality in the MSME sector.
  • Incubation

    Incubation is related to innovation. Under this scheme, the government provides help to the innovators by implementing their new ideas, design or products. As per this scheme, the government finance 75% to 80% of the project cost and help in promoting new ideas, products, designs etc.
  • Grievance monitoring system

    This scheme has been launched by the government to address the complaints or grievances of the business owners. With the help of this scheme, you can easily view the status of your complaints and in case you are not satisfied with the outcome, you can reopen it too.
  • Credit linked capital subsidy scheme

    This scheme has been launched by the government to provide new technology to replace their old & outdated innovative techniques. Micro, small & medium enterprises can avail this capital subsidy scheme by approaching banks directly. It also helps in upgrading business enterprises and provides a better system to run your business.
  • Women entrepreneurship

    This scheme is especially launched by the government for those women who want to start a business of their own and help them in expanding and managing their businesses. Under this scheme, the government main aim is to help women in establishing their business by providing capital, training, counselling & delivery techniques so that they can easily establish themselves in the business without any difficulty.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

MSME Registration (FAQ's)

The MSME registration is completely free, electronic, paperless, and self-declaratory.
The MSME applies only to manufacturing and service industries, with trade companies excluded. Trading companies serve solely as an intermediary between manufacturer and customer.
The government issued a notification on June 26, 2020, specifying that a GSTIN (GST Identification Number) is compulsory for registering an MSME on the Udyam registration portal. It claimed that the PAN and GST of the firm are required from April 1, 2021. However, the government has received multiple concerns from various MSME Associations indicating that the mandatory requirement of GSTIN is having an adverse effect on the process of MSME registration. Numerous businesses are exempt from the requirement to file GST Returns pursuant to the GST Act or notification.
  • e-Government: Establishing an e-infrastructure to facilitate the delivery of e-services.
  • e-Industry: Promotion of electronics hardware manufacturing and IT-ITeS industry
  • e-Innovation / R&D: Implementation of R&D Framework - Enabling the establishment of Innovation/R&D Infrastructure in growing ICT&E areas/Establishment of a mechanism for R&D translation.
  • e-Learning: Assistance in the development of electronic skills and knowledge network.
  • e-Security: Protecting India's cyberspace
  • e-Inclusion: Promoting the use of information and communication technologies for more inclusive growth.
  • Internet Governance: Strengthening India's Position on Global Internet Governance Platforms.
  1. Choose the forgot option.
  2. As specified in the application, select the OTP(One Time Password) option.
  3. Enter your mobile number/email address in the space provided above.
  4. You will receive OTP on the selected option after pressing the 'Validate & Generate OTP' button.
  5. Enter the OTP and click 'Validate OTP'. You will receive all registered numbers after your OTP is properly matched.

Follow the steps below to determine the status of your Udhyog Aadhar Registration:

  • Step 1 : Go to the official portal of the MSME - https://www.udyamregistration.gov.in/UA/UA VerifyUAM.aspx
  • Step 2 : Enter your Udyog Aadhaar Number.
  • Step 3 : Verify your Udyog Aadhaar Number by entering the Captcha Code.
  • Step 4 : Click on the ‘Verify' option.
  • Step 5 : The status of your Udhyog Aadhar Registration will now be displayed on the screen.
Each and every application will be accepted. There will be no rejections. On the basis of the information submitted by the applicant, the application will be granted.
No hard copy of the MSME Certificate will be issued for the benefit of the environment. The government has a strong belief in paperless work.
Yes, it is mandatory for online MSME registration.
MSME certificates serve as proof of registration. MSME certificates can be downloaded via an online registration process. Each business will be assigned a unique MSME certificate depending on its industry and sector.
The MSME certificate is valid for as long as the enterprise is open for business. On the other hand, a provisional MSME certificate is valid for five years.

To download the udyam registration certificate, follow the procedures below:-

  • Step 1 : To begin, navigate to the following link: https://udyamregistration.gov.in/UA/PrintAcknowledgement Pub.aspx.
  • Step 2 : Enter your 12-digit UAM or Aadhar card number.
  • Step 3 : Enter your mobile number as per your udhyog aadhaar card.
  • Step 4 : Click on 'Download'.

How FinacBooks help in MSME Registration in India?

FinacBooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing MSME/SSI/Udyog Aadhaar Registration at the least possible price. We will guide you through the entire process of Udyog Aadhaar/SSI/MSME Registration. To avail of the best deals on MSME/Udyog Aadhaar Registration, kindly call us at 8800221252, or you can also e-mail us at info@finacbooks.com

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Due Dates

  • GSTR-7 Summary of Tax Deducted at Source (TDS) and deposited under GST laws

    Sep 10th ,2021
  • GSTR-8 Summary of Tax Collected at Source (TCS) by e-commerce operators under GST laws

    Sep 10th ,2021
  • GSTR 1 for Aug 2021 (turnover more than INR. 1.50 Crore)

    Sep 11th ,2021
  • GSTR-6 Details of Input Tax Credit (ITC) received and distributed by an Input Service Distributor (ISD)

    Sep 13th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, opting for the QRMP scheme for Aug Month. (Aggregate turnover exceeding Rs.5 crore in the previous financial year)
     

    Sep 20th ,2021
  • GSTR-3B is a summary return to be filed by all taxpayers except those registered under the composition scheme, every month. However, from 1st January 2021, there is also quarterly filing option provided to taxpayers with annual aggregate tunrover of up to Rs.5 crore, not opting for the QRMP scheme for Aug Month. (Aggregate turnover up to Rs.5 crore in the previous financial year)

    Sep 20th ,2021