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Udyam registration or MSME registration is a government certificate that is designed to encourage Micro, Small, and Medium Enterprises (MSMEs) in India. It provides financial support with tax benefits and government schemes to assist in business development and sustainability. The Udyam registration portal provides an easy and convenient method to complete MSME registration process. A business can obtain the certificate after registration if it meets the MSME classification requirements based on investment size and annual turnover. The MSME certificate offers business priority sector lending with lower interest rates and simplified compliance responsibilities.
The MSME classification is based on investment in plant and machinery and annual turnover of a business to provide financial support to various business types. MSME registration online requires businesses to submit documents like Aadhaar and PAN details. The MSME registration process does not impose any processing fees which enables all qualifying businesses to get this certificate. The Udyam certificate remains valid for the lifetime of a business. Businesses that get the MSME certificate can prove legal legitimacy, access public tenders and achieve legal protection against delayed payments.
MSME Registration is also known as Udyam Registration. The Government of India issues MSME certificate to Micro, Small, and Medium Enterprises (MSMEs). The MSME udyam registration assists MSMEs in redeeming several benefits from government schemes for their establishment and growth. The MSME Udyam registration has replaced the old Udyog Aadhaar memorandum (UAM) registration process. Enterprises can apply for MSME registration online through self-declaration and obtain a unique MSME registration number. The Udyam Registration certificate is issued digitally to allow access to subsidies, loans at lower interest rates, and priority sector lending. Enterprises can check their status through the MSME registration check or by PAN number.
The MSMEs are classified based on their investment in plant and machinery and annual turnover. The current revised MSME classification is structured below in which the annual investment and annual turnover determine whether a business should considered as an MSME or not:
| Enterprise Category | Investment Limit | Turnover Limit |
|---|---|---|
| Micro Enterprise | Up to ₹2.5 crore | Up to ₹10 crore |
| Small Enterprise | Up to ₹25 crore | Up to ₹100 crore |
| Medium Enterprise | Up to ₹125 crore | Up to ₹500 crore |
MSME Registration allows Micro, Small, and Medium Enterprises to redeem government schemes and subsidies such as Credit Linked Capital Subsidy, Public Procurement Policy, Credit Guarantee Scheme, and many more. The MSMEs are given loans from the banks as the Udyam registration assures priority sector lending.
To apply for an MSME certificate, Businesses must submit the following documents on the Udyam registration portal:
Follow the below-listed process to apply for and obtain the MSME certificate through the Udyam registration portal:
Step 1 — Visit the Udyam Registration Portal.
Step 2 — Click on ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II’.
Step 3 — Enter your ‘Aadhaar number’ and ‘Name of the entrepreneur’, then validate via OTP.
Step 4 — Provide your PAN number, business details, and other required information.
Step 5 — Fill in details such as enterprise name, address, bank details, NIC code, and number of employees.
Step 6 — Enter investment and turnover details, then submit the declaration.
Step 7 — Validate using the final OTP and submit the form.
Step 8 — Receive the MSME registration number and download the online MSME certificate.
The Udyam/ MSME Certificate does not have an expiry date and it remains valid for as long as a business is ethical and profitable. The MSME registration remains valid for the lifetime of a business.
Businesses do not need to apply for MSME renewal process since it does not expire and has a lifetime validity. However, the MSME certificate must be renewed with updated Income Tax Returns (ITR) and Goods and Services Tax Returns (GSTR) details for the last fiscal year annually to ensure appropriate MSME classification based on the latest exportation, investment and turnover details. The renewal for MSME registration can be online done through Udyam registration portal. Businesses need to provide their Udyam Registration Number, PAN, GSTIN, ITR filed in the previous year, and registered mobile number to apply for MSME Registration renewal. The businesses do not need to pay any processing fee for MSME certificate renewal since it is free of cost by the government.
MSME registration, also known as Udyam registration, is very important for Micro, Small, and Medium Enterprises to get government benefits, subsidies, and financial assistance. The process for MSME registration online is easy, with minimum documents and no government fees. Registered businesses can benefit from priority sector lending, tax exemptions, quick loan approvals, lower interest rates, and protection against delayed payments. MSMEs do not need to renew the Udyam certificate as its validity remains for lifetime but it needs to be updated every fiscal year with updated investment or turnover information. By getting an MSME registration certificate, businesses can assure long-term growth and eligibility for various government schemes and incentives aimed to support small businesses in India.
MSME registration is a government certificate for Micro, Small, and Medium Enterprises in India and it helps to avail government benefits, financial support, and tax exemptions. The MSME registration can be done online via the Udyam Registration Portal.
Businesses that meet the criteria for MSME classification based on their investment and annual turnover are eligible for an MSME certificate.
Any business that fulfills the MSME registration criteria can apply for Udyam registration, including.
To obtain an MSME registration certificate, follow the below-listed steps: