MSME Registration in India
What is MSME Registration?
MSME Registration (Micro, Small, and Medium Enterprises Registration) is the process of registering a business under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. It provides businesses with recognition, legal benefits, and access to government schemes aimed at promoting entrepreneurship and financial support.
The registration is also known as Udyam Registration, governed by Udyam Registration Portal under the Ministry of Micro, Small and Medium Enterprises.
Governing Laws
- Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006
- Notification dated 26th June 2020 – defining Micro, Small, and Medium enterprises based on investment in plant & machinery/equipment and turnover.
- Udyam Registration Guidelines, 2020 – online registration process under the Ministry of MSME.
Categories of MSME
- Micro Enterprise:
- Investment in plant & machinery ≤ ₹1 crore
- Turnover ≤ ₹5 crore
- Small Enterprise:
- Investment in plant & machinery ≤ ₹10 crore
- Turnover ≤ ₹50 crore
- Medium Enterprise:
- Investment in plant & machinery ≤ ₹50 crore
- Turnover ≤ ₹250 crore
(As per Notification 26th June 2020 under MSMED Act)
Who Can Register?
- Manufacturing Enterprises: Businesses engaged in production, processing, or preservation of goods.
- Service Enterprises: Businesses providing services like IT, consultancy, repair, logistics, or other services.
- Both Proprietorship, Partnership, LLP, Private Limited, Section 8 Companies, or any legal entity can register.
Documents Required
- Aadhaar Number of the proprietor/partners/directors.
- PAN Number of the business entity or proprietor.
- Business Address Proof: Electricity bill, rental agreement, property documents.
- Bank Account Details with IFSC code.
- NIC Code of Business Activity (manufacturing/service sector).
- Investment and Turnover Details: Required for categorization as Micro, Small, or Medium enterprise.
No physical documents are required as Udyam Registration is completely online.
Procedure for MSME Registration
- Visit Udyam Registration Portal: Official portal at https://udyamregistration.gov.in.
- Enter Basic Details: Aadhaar, PAN, business name, type of enterprise, and address.
- Select Type of Enterprise: Micro, Small, or Medium based on investment and turnover.
- Provide Business Activities: Manufacturing or Service sector, along with NIC code.
- Submit & Verify: System verifies Aadhaar and PAN details automatically.
- Obtain Udyam Registration Certificate: Certificate is issued digitally with a unique Udyam Registration Number.
Advantages of MSME Registration
- Financial Support & Subsidies: Access to government schemes, including collateral-free loans under Credit Guarantee Fund Trust (CGTMSE).
- Priority Sector Lending: Banks provide easier loans with lower interest rates.
- Tax Benefits: Exemptions under GST, Income Tax, and other indirect taxes depending on schemes.
- Protection Against Delayed Payments: Under MSMED Act, Section 15, enterprises are protected against delayed payments from buyers.
- Ease of Government Tenders: Preference in public procurement and government contracts.
- Reimbursement of Certification & Patent Costs: MSMEs can claim reimbursement for ISO, quality, and patent registrations.
- Export Promotion: Benefits under Export Promotion Schemes and subsidies for international marketing.
Our MSME Registration Services Include
- Guidance on Micro, Small, or Medium enterprise classification.
- Assistance with Udyam Registration online.
- Help in obtaining Digital Certificate and Udyam Registration Number.
- Advisory on government schemes, tax benefits, and priority sector lending.
- Support for MSME updates, renewals, or modifications.
Our Commitment
At India Stat Filing, we simplify MSME registration and help businesses leverage all financial, legal, and operational benefits. From document verification to online filing, we ensure hassle-free registration and seamless access to government schemes.