MSME stands for Micro, Small and Medium Enterprises. A common term for MSME registration is Udyam registration. Udyam registration is the formal procedure for registering a business as a Micro, Small or Medium Enterprise (MSME) under the Ministry of MSME, Government of India. The Government of India has clearly defined which businesses fall under the MSME category, subject to certain investment and turnover limits. Among the many advantages of MSME registration are tax advantages, simpler loan and credit facilities and more.
To make the registration process easier the Ministry of MSME of the Government of India launched the Udyam registration portal. The Udyam registration system was introduced to take the place of the former Udyog Aadhaar Memorandum (UAM) method for registering MSMEs.
The new online Udyam registration system helps business owners register quickly and conveniently supporting the goal of a digital India. Following successful MSME registration, the enterprise is recognised as ‘Udyam’ on the portal and receives a unique and permanent Udyam registration number which is used for all MSME-related services and benefits. Upon successful registration an e-certificate known as the Udyam registration certificate will be issued. Whether you are a startup, small manufacturer or service provider, Shine Legal India makes Udyam registration easier by assisting with document preparation, guiding you through every step of the MSME registration process and providing regular updates.
Understanding Udyam certificate registration for MSME
The Udyam certificate is an official document issued by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, confirming that a business has successfully completed the Udyam registration process. Udyam registration formally recognises an enterprise as a micro, small or medium business based on self-declared figures related to investment in machinery, equipment or plant. The Udyam certificate contains important business details such as the Udyam registration number, enterprise type, classification and a QR code for digital verification. The primary objective for obtaining Udyam registration is to enable MSMEs to access a range of government-backed benefits including eligibility for subsidies, loan interest concessions, credit guarantees and more.
MSME Udyam registration is categorised according to investment and turnover.
1.Micro Enterprises
- These are the smallest businesses.
- Up to ₹2.5 crore can be invested in plant, machinery or equipment.
- Annual turnover up to ₹10 crore.
2.Small Enterprises
- These are slightly larger businesses than micro enterprises.
- Up to ₹25 crore can be invested in plant, machinery or equipment.
- Annual turnover up to ₹100 crore.
3.Medium Enterprises
- These are mid-sized businesses.
- Up to ₹125 crore can be invested in machinery, equipment or plants.
- Annual turnover of up to ₹500 crores.
Who should apply for an MSME Udyam registration
Any business in India that manufactures or provides services is eligible to register for MSME Udyam registration subject to certain investment and turnover limits. This includes
- Manufacturing businesses such as companies or individuals that produce, process or preserve physical goods.
- Service providers are businesses that offer various services like IT, consulting, repair, education, hospitality and more.
Procedure for obtaining the Udyam certificate for MSME
- 1.Online registration- Businesses can easily register through the official Udyam Portal because the entire process is done digitally.
- 2.Self-certification- Applicants must self-declare key information about their business.
- 3.Aadhaar verification- During the registration process the applicant or business owner must provide their Aadhaar number.
- 4.Instant registration number- Businesses are immediately given a unique registration number after completing the online form.
- 5.Business type classification- Based on their primary activity, businesses are classified as either manufacturing or service entities.
- 6.Zero government- registration fees- Udyam registration is entirely free with no government fees required.
Advantages of Udyam certificate for MSME development
- 1.Udyam registration provides MSMEs with easier access to various government schemes such as the credit guarantee fund and more.
- 2.Banks and NBFCs provide collateral-free loans to MSMEs registered under the Udyam registration scheme, making it easier to access funding.
- 3.MSME with Udyam registration can benefit from a variety of subsidies, including patent registration, industrial promotion, income tax benefits and more.
- 4.MSME registered with Udyam are protected by the Micro, Small and Medium Enterprises Development Act, 2006 which allows them to recover past-due amounts as well as interest from buyers.
- 5.Government procurement and tenders give preference to Udyam-registered MSMEs, making it easier for them to secure contracts.
Documents required for Udyam registration for MSME
- 1.Aadhaar number.
- 2.Permanent Account Number (PAN card)
- 3.GSTIN (if applicable)
- 4.Bank account details.
- 5.Business address proof.
Step-by-Step process for online MSME Udyam registration
- 1.Visit the official website of the Udyam registration portal.
- 2.On the homepage, click on the option ‘For New Entrepreneurs’.
- 3.Enter Aadhaar number and name. An OTP will be sent to your mobile number linked to Aadhaar for verification.
- 4.Enter your PAN number and name. Click 'Validate PAN' to verify your information.
- 5.Provide Income Tax Return (ITR) and GST details (if applicable)
- 6.Fill in the application form with the required business details.
- 7.Generate a temporary Udyam registration number.
- 8.Once your application is verified, you can download your Udyam certificate from the portal.
Common mistakes to avoid during MSME Udyam registration
- Entering incorrect Aadhaar or PAN information.
- Inconsistency between Aadhaar and PAN names.
- Selecting the wrong business category (micro, small or medium).
- Providing contact information that is outdated.
Advantages of choosing Shine Legal India to supports your MSME Udyam registration
- Personalized support- Shine Legal India professionals help you to determine if your business qualifies for MSME registration, ensuring you meet all criteria before starting the process of Udyam registration.
- Document preparation- Shine Legal India assists in gathering and reviewing all necessary documents such as Aadhaar, PAN and bank details, making sure everything is in order for Udyam registration.
- Error-free applications- The expert team of Shine Legal India ensures all entries are accurate which reduces the chances of mistakes or rejections.
- Status monitoring- Shine Legal India’s experts monitor your registration status and promptly address any additional requirements or government enquiries.
- Time-saving process- Shine Legal India simplifies MSME registration for you so you do not have to deal with the portal yourself.
- Fully compliant registration- Shine Legal India helps you get your MSME registration done legally and professionally.
