Right Plan for Your Business
MSME – Overview
In India, the government offers a significant opportunity to Micro, Small, and Medium Enterprises (MSMEs) through MSME registration, which acts as a gateway to numerous benefits and support schemes.
This registration is designed to promote, protect, and empower small and medium-scale industries, helping them establish a strong foundation and grow sustainably.
MSMEs, often referred to as Small Scale Industries (SSIs), are rightly called the backbone of the Indian economy, contributing greatly to employment generation, industrial output, and exports.
MSME Registration Form
The MSME Registration Form is the official document or online application used by Micro, Small, and Medium Enterprises (MSMEs) in India to apply for registration under the MSME category.
This registration provides official recognition and enables businesses to access a range of government benefits, incentives, and support schemes designed to promote their growth, development, and competitiveness.
Key Information Required in the MSME Registration Form
When filling out the MSME Registration Form, the following key details must be provided accurately:
Business Information:
Include the legal name of the business, its type (e.g., Proprietorship, Partnership, Private Limited, etc.), and the complete business communication address.
Also, specify the main economic activity — manufacturing, services, or trading.Investment in Plant & Machinery or Equipment:
Mention the total investment made in purchasing machinery, equipment, or other assets used for business operations.Annual Turnover:
Provide details of the business’s annual financial turnover.Employment Details:
Specify the number of employees working in the enterprise, including skilled and unskilled workers.Aadhaar Number:
Enter the Aadhaar number of the business owner or authorised signatory.PAN (Permanent Account Number):
Provide the PAN of the business entity.Bank Account Details:
Mention the bank account number and IFSC code of the enterprise’s primary bank account.Contact Details:
Include a valid mobile number and email address for official communication.Social Category:
Indicate whether the business owner belongs to the SC, ST, OBC, or General category.Location of Business:
Provide the full physical location of the business, including district and state.Date of Commencement:
Specify the date when the business started operations.
What is MSME Classification?
| Category | Investment in Plant & Machinery/Equipment | Annual Turnover |
|---|---|---|
| Micro | Up to Rs. 1 crore | Up to Rs. 5 crore |
| Small | Up to Rs. 10 crore | Up to Rs. 50 crore |
| Medium | Up to Rs. 20 crore | Up to Rs. 250 crore |
Documents Required for MSME Registration
To complete the MSME registration process successfully, certain documents and details are required to verify your business’s legitimacy and activity. Below is the checklist of documents needed:
Address of the Business: Proof of the business location (rental agreement, electricity bill, or property papers).
Basic Business Activity: Description of the enterprise’s primary operations—manufacturing, trading, or services.
NIC 2-Digit Code: Industry classification code representing the nature of your business activity.
Investment Details: Information about investments made in plant, machinery, or equipment.
Turnover Details: Details of annual turnover as per the new MSME definition.
Aadhaar Number: Aadhaar of the business owner or authorised signatory.
PAN Number: Permanent Account Number of the business or proprietor.
Bank Account Number: The active business bank account number with IFSC code.
Partnership Deed: Required in case of partnership firms.
Sales and Purchase Bill Copies: Proof of business transactions and operations.
Copies of Licenses and Machinery Bills: Proof of compliance and investment in business infrastructure.
Benefits of MSME Registration
Obtaining MSME registration provides several benefits that empower businesses and foster long-term growth. Here are the key advantages:
Access to Government Schemes and Subsidies:
MSMEs can avail of multiple government incentives, including financial support, subsidies, and preferential procurement policies.Easier Access to Credit:
MSME-registered businesses can obtain collateral-free loans at lower interest rates from banks and financial institutions.Protection of Intellectual Property Rights (IPR):
Registration helps businesses safeguard their trademarks, patents, and copyrights effectively.Facilitation of Exports:
MSMEs gain access to government export promotion schemes and global trade opportunities.Participation in Government Tenders and Contracts:
MSME registration enables businesses to apply for and participate in government projects and contracts with preference.Access to Dispute Resolution Mechanisms:
Registered MSMEs can resolve disputes efficiently through dedicated MSME tribunals and facilitation councils.
Who Can Apply for Udyam Registration?
The Udyam Registration Portal is the government’s official online platform for MSME registration.
Any existing or new enterprise can apply for Udyam registration if it meets the MSME classification criteria based on investment and turnover.
The process is simple, fully online, and requires minimal documentation—making it easier for businesses to get official recognition and access government benefits efficiently.
What is Micro, Small & Medium Enterprises (MSME)?
Micro, Small, and Medium Enterprises (MSMEs) are businesses classified by the Government of India based on their investment in plant and machinery or equipment and annual turnover. These enterprises play a vital role in driving economic growth, generating employment, and promoting balanced regional development across the country.
MSME Classification Criteria
| Enterprise Type | Investment in Plant & Machinery / Equipment | Annual Turnover |
|---|---|---|
| Micro Enterprise | Up to ₹1 crore | Up to ₹5 crore |
| Small Enterprise | Up to ₹10 crore | Up to ₹50 crore |
| Medium Enterprise | Up to ₹20 crore | Up to ₹250 crore |
This unified definition was introduced under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, and later revised in July 2020 to promote transparency and inclusivity.
By meeting the above thresholds, enterprises can register as MSMEs under the Udyam Registration system to avail of various government benefits, financial assistance, and growth incentives.
| Benefits | Proprietorship | Partnership | Public Limited | Others |
|---|---|---|---|---|
| Access to Credit | Yes | Yes | Yes | Yes |
| Collateral-free Loans | Yes | Yes | Yes | Yes |
| Financial Support Schemes | Yes | Yes | Yes | Yes |
| Priority for Government Tenders | Yes | Yes | Yes | Yes |
| Subsidies for Technology Upgradation | Yes | Yes | Yes | Yes |
| Lower Interest Rates on Loans | Yes | Yes | Yes | Yes |
| Protection Against Delayed Payments | Yes | Yes | Yes | Yes |
| Eligibility for Government Incentives | Yes | Yes | Yes | Yes |
| Benefits under Government Schemes | Yes | Yes | Yes | Yes |
| Reduced Registration Fees | Yes | Yes | Yes | Yes |
| Market Promotion and Assistance | Yes | Yes | Yes | Yes |
Salient Features of Udyam Registration
Udyam Registration is the official and simplified process introduced by the Government of India for MSME registration. It ensures ease of doing business through a fully digital, paperless, and cost-free system.
Key Features:
1. Easy Access:
Available for all types of enterprises through the official Udyam Registration Portal.2. 100% Digital Process:
The entire process is fully online and paperless, ensuring a seamless experience.3. No Document Upload Required:
Enterprises are not required to upload or submit any documents or proofs.4. Free of Cost:
No registration fees — the process is completely free.5. Instant Certificate Generation:
On successful registration, an e-certificate called the Udyam Registration Certificate is issued instantly.6. Dynamic QR Code:
The certificate carries a dynamic QR code for quick and easy online verification.7. Integration with Tax Systems:
The portal is linked with Income Tax and GSTIN databases for automatic data verification and accuracy.8. Aadhaar-Based Registration:
Only the Aadhaar Number of the business owner or authorized signatory is required.9. Single Registration per Enterprise:
Each enterprise can obtain only one Udyam Registration, which may include multiple business activities (manufacturing or services).10. Permanent Registration Number:
Once registered, the enterprise receives a permanent identification number — valid for a lifetime.11. Alignment with MSME Definition:
Conforms to the new MSME classification based on investment and turnover.12. Enhanced Credibility:
Registration enhances the business’s credibility and trustworthiness for availing government tenders and schemes.13. Priority Sector Benefits:
Enables enterprises to access priority sector lending and government subsidies.14. Export Turnover Exclusion:
Export income is excluded from total turnover calculations, promoting export growth.15. Legal Compliance:
Any misrepresentation or suppression of facts attracts penalties under Section 27 of the MSMED Act.16. Re-Registration for Existing MSMEs:
Businesses previously registered under EM-II or UAM must re-register on the Udyam portal.
MSME Registration Process (Udyam Registration)
The MSME Registration, now known as Udyam Registration, is a completely online and paperless process introduced by the Government of India to make registration simple and transparent. Follow the steps below to register your enterprise under the MSME category.
Step-by-Step Process:
Access the Udyam Registration Portal:
Visit the official Udyam Registration Portal to begin your registration process.Self-Declaration:
Provide key details such as your business name, type of organization, address, and ownership information through a self-declaration form.Aadhaar Verification:
Enter and verify your Aadhaar number using OTP authentication. The Aadhaar number is mandatory for the registration process.PAN & GSTIN Details (If Applicable):
Provide your PAN (Permanent Account Number) and GSTIN (Goods and Services Tax Identification Number) for automatic data validation.Classification & Turnover:
Based on your investment in plant & machinery or equipment and annual turnover, the system will automatically classify your enterprise as Micro, Small, or Medium.Dynamic QR Code Certificate:
Once registration is complete, you will receive an e-certificate known as the Udyam Registration Certificate. It contains a dynamic QR code for easy online verification of business details.No Renewal Required:
The Udyam Registration is permanent — there’s no need for renewal once registered.Integration with Tax Systems:
The portal is integrated with Income Tax and GST databases, allowing automatic fetching of turnover and investment details from government systems.Multiple Business Activities:
Enterprises can list multiple business activities (manufacturing, service, or both) under a single registration.Re-registration for Existing MSMEs:
Businesses already registered under EM-II, UAM, or other MSME systems must re-register on the Udyam portal to stay compliant.Support & Assistance:
Champions Control Rooms and District Industries Centres (DICs) provide continuous support, guidance, and troubleshooting for enterprises during the registration process.Completely Free of Cost:
The Udyam Registration process is 100% free — there are no government charges or hidden fees involved.
How to Apply for MSME Registration on the Udyam Registration Portal
The Udyam Registration Portal is the official platform introduced by the Government of India for MSME registration. The process is entirely online, paperless, and based on self-declaration — no need to upload any physical documents.
For New Entrepreneurs and Those with EM-II Registration
Follow the steps below to complete your MSME (Udyam) Registration:
Step 1: Visit the Official Udyam Registration Portal
Go to the Udyam Registration Portal and click on the button that says:
“For New Entrepreneurs who are not Registered yet as MSME or those with EM-II.”
Step 2: Aadhaar Verification
Enter your Aadhaar Number and Entrepreneur’s Name, then click “Validate and Generate OTP.”
You’ll receive a One-Time Password (OTP) on your registered mobile number. Enter the OTP to proceed to the PAN Verification page.
Step 3: PAN Verification
Enter your Type of Organisation (Proprietorship, Partnership, Private Limited, etc.) and your PAN Number.
Click “Validate PAN” — the system will automatically fetch your details from the government database for verification.
Step 4: Fill in Enterprise Details
Complete the Udyam Registration Form by providing all required details, such as:
Business name and address
Type of enterprise (manufacturing/service)
Bank details
Number of employees
Investment and turnover details
Step 5: Submit and Get Udyam Certificate
After entering all details, select the declaration checkbox and click “Submit and Get Final OTP.”
Once the OTP is verified, your Udyam Registration Certificate will be generated and sent to your registered email address.
✅ Note: You can also check your MSME registration status anytime on the Udyam Registration Portal using your Udyam Registration Number (URN).
Registration for Entrepreneurs Already Having UAM
Entrepreneurs who already possess a Udyog Aadhaar Memorandum (UAM) registration can easily migrate to the new Udyam Registration system through the official portal. The process ensures seamless transition and continued access to MSME benefits.
Step-by-Step Process for UAM Holders
Step 1: Access the Udyam Registration Portal
Visit the Udyam Registration Portal homepage and click on one of the following options:
“For those having registration as UAM”, or
“For those already having registration as UAM through Assisted filing.”
Step 2: Enter UAM Number and Select OTP Option
Provide your Udyog Aadhaar Number (UAM) and choose how you’d like to receive your OTP — via mobile number or email ID (as registered in the UAM system).
Step 3: Validate OTP
Click “Validate and Generate OTP.”
Enter the OTP you receive to verify your details and continue to the next step.
Step 4: Complete Registration under Udyam
After successful validation, fill out the Udyam Registration Form with the required enterprise information.
Once the form is submitted, your UAM details will be migrated to the new Udyam Registration system, and your Udyam Registration Certificate will be generated.
How A2Z Registration Can Help in MSME Registration
Registering your business under the MSME (Udyam) scheme can be a smooth and hassle-free experience with A2Z Registration’s expert assistance. The team ensures that every step — from document preparation to final certification — is handled efficiently and accurately.
1. Expertise
A2Z Registration has a team of skilled and experienced legal and compliance professionals who specialize in MSME registration and related government processes.
2. Convenience
The user-friendly online platform simplifies the entire registration journey, enabling entrepreneurs to complete all formalities quickly without dealing with complex paperwork or government portals.
3. Time and Cost Savings
By partnering with A2Z Registration, you save valuable time, effort, and resources. The streamlined process allows you to focus on growing your business while the experts manage your registration end-to-end.
4. Accuracy
The professionals at A2Z Registration ensure precise data entry and documentation, minimizing the risk of mistakes that could cause rejections or unnecessary delays.
5. Compliance Assurance
With A2Z Registration, your MSME registration is guaranteed to be fully compliant with current government laws and policies, ensuring smooth approval and long-term validity.