MSME Registration

Benefits of MSME

Low bank loan interest rate
Carry forward of credit for minimum alternate tax (MAT) for up to 15 years instead of 10 years
Cost of getting a Patent or trademark reduces
Bar Code Registration Subsidy
Concession in Electricity bills
Reimbursement of ISO Certification fee
Eligible for priority sector lending from banks
Get the benefit of a government security deposit waiver that is helpful while participating in e-tenders
Special consideration on International Trade fairs

MSME Classification

Current revised MSME classification criteria, where the investment and annual turnover are to be considered for deciding if an entity is considered as an MSME are as follows:

Classification Investment & Annual Turnover

Micro < Rs.1 crore & < Rs.5 crore

Small < Rs.10 crore & < Rs.50 crore

Medium < Rs.50 crore & < Rs.250 crore

Who can Apply for Udyam Registration?

The following entities are eligible for MSME registration:

Individuals,
Private and public limited companies
Sole proprietorship
Partnership firm
Limited Liability Partnerships (LLPs)
Self Help Groups (SHGs)
Co-operative societies
Trusts

MSME Registration on Udyam Registration Portal Process

The MSME registration process is entirely online. MSME online registration is to be done on the government portal of udyamregistration.gov.in. There is no MSME registration fee charged for registration.

MSME registration online can be done under the following two categories in the portal –

For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and
For those having registration as UAM and For those already having registration as UAM through Assisted filing

For New Entrepreneurs who are not Registered yet as MSME or those with EM-II

Step 1: New entrepreneurs and entrepreneurs having EM-II registration need to click the button “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” shown on the home page of Udyam Registration Portal.

Step 2: On the next page, enter the Aadhaar number and the name of the entrepreneur and click on the “Validate and Generate OTP Button”. Once this button is clicked and OTP is received and entered, the PAN Verification page opens.

Step 3: The entrepreneur must enter the “Type of Organisation” and the PAN Number and click on the “Validate PAN” button. The portal gets the PAN details from the government databases and validates the PAN number of the entrepreneur.

Step 4: After verification of PAN, the Udyam Registration form will appear, and the entrepreneurs need to fill in their personal details and details of their enterprise.

Step 5: Enter the investment and turnover details, select the declaration, and click on the “Submit and Get Final OTP” button. The OTP is sent, and after entering the OTP and submitting the form, the Udyam Registration Certificate will be sent through email.