MSME stands for – Micro, Small, and Medium Enterprise. MSME registration is an official process that facilitates small or MSME businesses to receive legal identity from the Indian government. It is also known as Udyam registration. It is a simple way for MSME sector to utilize government schemes and benefits.

In India, the government provides MSME registration to those industries that are classified as micro, small, and medium enterprises by the Indian government. The registration aims to help the MSME sector to receive different advantages furnished by the government for their growth and advancement.

It is not mandatory for MSMEs to obtain this registration, but having the registration is beneficial for an individual’s business under the government tax structure as it provides a huge benefits in terms of establishing the business, taxation, credit facilities, loans etc.

All service and manufacturing industries, wholesale, and retail trade that match the latest MSME classification criteria of yearly turnover and investment are eligible for applying for MSME registration. Thus, an individual’s or business’s annual investment and turnover are significant
factors for MSME registration eligibility.

The following individuals or businesses are eligible for MSME registration –

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

For the MSME registration, individuals require the following documents –

• Aadhaar card
• PAN card

The MSME registration process is completely online, and the registration can be done online on the government portal of udyamregistration.gov.in. There is no provision for any MSME registration fee for the registration process.

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

1.  For New Entrepreneurs – who have not registered as MSME yet or those with EM-II
2. For existing entrepreneurs – who have registration as UAM and through Assisted filing

• On the Udyam registration portal, new entrepreneurs and entrepreneurs having EM-II registration should click the option “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” displayed on the home page.
• Enter the name of the entrepreneur and aadhaar number on the next page. Now, click on the option of “Validate and Generate OTP”. After clicking this option, an OTP is generated and received by the applicant. Enter the OTP to open the PAN Verification page.
• The entrepreneur is advised to enter the “Type of Organisation” and the PAN Number. Click on the option of “Validate PAN”. The portal receives the PAN details of the applicant from the government databases and then validates the PAN number.
• Once the PAN is verified, the Udyam Registration form will appear on the screen. The entrepreneurs are needed to fill in their personal details such as name, address, etc, and details of their enterprise or business.
• Now, enter the turnover and investment details and select the declaration box. Click on the option of the “Submit and Get Final OTP”. The OTP will be sent to the registered email address.
• Enter the OTP and submit the form. This will generate the Udyam registration certificate that is usually sent to the registered email of the entrepreneur. They can also check out the MSME registration status by visiting the Udyam Registration Portal.

If you are an entrepreneur who already has UAM registration, then you need to click the option of “For those already having registration as UAM through Assisted filing” or “For those having registration as UAM” displayed on the home page of the Udyam registration portal. By clicking, a
new page will be opened where the Udyog Aadhaar Number is needed to be entered. An option of OTP should also be selected.

The choices available are to receive OTP on mobile as filled UAM or receive OTP on email as filled UAM. After the OTP Options selection, “Validate and Generate OTP”; has to be clicked. Upon entering the OTP, registration information has to be entered on the MSME registration form, and Udyam registration is complete.

There is no provision for MSME registration fees, and the government does not impose any registration fees. The entire registration process is free of cost on the Udyam official Portal. To initiate the process, it does not need any proof of registration fees. Other important details, such as
GST and PAN-linked details of annual turnover and investment of the enterprises, are automatically obtained by the Udyam registration website from the Government databases. This portal is compatible with Income Tax and GSTIN systems. Remember, GST registration is not essential for businesses that do not need to obtain GST registration. But businesses that are required to obtain GST registration under the GST act, need to input their GSTIN for availing the MSME Registration or Udyam Registration.

The Ministry of MSME provides an e-certificate i.e. the Udyam Registration Certificate for MSMEs in India. The Udyam registration certificate is referred to as the MSME registration certificate. The MSME registration certificate is given to the entrepreneurs upon the completion of the MSME
registration process. The certificate will have a QR Code, from which the enterprise details may be retrieved.