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MSME Registration

It is beneficial for MSMEs to obtain MSME Registration to get the benefit of the Government schemes. To become eligible for obtaining MSME Registration, the owner is required to invest less than Rs 20 Crores and must have a turnover of less than Rs 100 Crore (as per the amendment made on 13 May 2020) in plant and machinery either for a Manufacturing or Service Sector.

Package inclusions:
  • Consultation on Registration
  • File application for Registration
  • Guidance in the complete process
  • Registration Certificate
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MSME Registration

Micro- Small and Medium Enterprises also known as MSMEs make a large contribution towards the socio-economic development of our country. MSME comes under the Ministry of Micro, Small and Medium Enterprises Development (Act). Getting an MSME registration is very essential as it enables these enterprises to avail of the benefits from various Government initiated schemes. The MSMEs can be classified into two categories, such as manufacturing and service enterprises.

Not all enterprises are aware of the benefits and the financial aid that are available for Micro, Small and Medium Enterprises (MSME). The founders of these companies raise capital at very high costs as they rely on banks wherein, they have their current account or rely on local moneylenders for quick working capital loans.

Examples of some of the benefits provided by the Government to MSMEs are exemption from the Direct Tax, Private-Sector lending, power tariff subsidies, exemption from Excise Duties, capital investment subsidies.

Some of the well-known MSMEs in India are Molecular Connections, Ankur Scientific Energy Technologies, Mynd Solutions etc.

What are Micro, Small, and Medium Enterprise or MSME?

MSME’s or Micro, Small and Medium Enterprise are classified into two categories:

  • Manufacturing Enterprise and
  • Service Enterprise.

As per the latest amendment announced by the Finance Minister, Nirmala Sitharaman on 13th May, 2020 the difference between the manufacturing and service sectors has been eliminated. The investment limits have been revised, and the Government has fixed a Turnover Criteria.

In terms of investment the classification is given below:

Micro-Enterprises

Types of Industries

Types of Investment

Investment Amount

Turnover Amount

Manufacturing and Service Sector

In-Plant and Machinery

Less than Rs 1 Crore

Less than Rs 5 Crore

Small-Enterprises

Types of Industries

Type of Investment

Investment Amount

Turnover Amount

Manufacturing and Service Sector

In-Plant and Machinery

Rs 1 Crore to Rs 10 Crore

Rs 5 Crore to Rs 50 Crore

Medium Enterprises

Types of Industries

Type of Investment

Investment Amount

Turnover Amount

Manufacturing and Service Sector

In-Plant and Machinery

Rs 10 Crore to Rs 20 Crore

Rs 50 Crore to Rs 100 Crore

What is the Procedure to get MSME Lisence Registration?

Businesses willing to avail of the benefits announced by the Government need to register their business on the “ Udyog Aadhar Memorandum portal”The registration process is free and simple for every user.

To get the MSME Registration done easily you need to follow the steps given below:

  • First visit the Udyog Aadhar Memorandum Portal.
  • You need to have an Aadhar Card in hand as it is mandatory for MSME Registration.
  • Enter your 12 digit Aadhar Number.
  • Then fill in the name of the entrepreneur.
  • Then click on ‘Validate and Generate OTP”.
  • Enter the OTP Number received.
  • Once the Verification is completed, you need to fill the listed details in the online registration form:

1) Name of the Business Owner.

2) Category of the Applicant- Such as: General, SC, ST, OBC, Others.

3) PAN Details.

4) Postal address of the business attached with district, pin-code, state, email address and mobile number. 

5) PAN Details.

6) Previous Registration Details of the business.

7) The commencement date of the business.

8) Bank Account Details along with the IFSC Code.

9) The type of Organisation-whether it is “Services” or “Manufacturing”.

10) Total Number of Employed Workers.

11) Total capital (In lakhs) invested in business/enterprise.

12) Annual Turnover of the business.

13) National Industrial Classification (NIC) Code.

14) Details of the District Industries Centre{ DIC}.

  • Then click on the submit button to generate OTP which will be sent to the e-mail id provided in the form for the purpose of registration.
  • Enter the Aadhar OTP received on mobile for the second time and then click on the option”Final Submit”.
  • An acknowledgment will be sent to your number through e-mail once the registration process is complete.
  • After verifying all the details, the UAM Number is generated for the business. These UAM numbers can be used to avail benefits for the MSMEs.

The registration process can also be done offline.

What are the Documents Required for Getting MSME License Registration?

The documents required for obtaining online MSME License Registration are as follows:

  • PAN Card Details of the proprietor or all the directors or all the partners.
  • Aadhar Card Details of the proprietor, directors, and partners.
  • Proof of ownership of the place being used as a Registered Office such as the Allotment Letter or Lease Agreement or Possession Letter or Property Tax Receipt.
  • If in case the place being used is a rented premise, then the Rent Agreement with the No-Objection Certificate (NOC) from the landlord together with the utility bill.
  • Copy of Purchase Bill of the raw materials purchased.
  • Copy of Sale Bill all the products.
  • In case of a Partnership firm-A copy of partnership deed.
  • For Private Limited Company –A copy of MOA and AOA along with the Certificate of Incorporation attached with a Board’s Resolution authorizing the director to sign the application.
  • As per the Industrial Development Regulation Act, 1951-A copy of Industrial License.
  • An affidavit on Rs. 10/-Non-Judicial Stamp Paper duly attested by the Notary Officer declaring Status of the Machinery Installed and the power required etc.
  • Purchase bill of the machinery installed in the enterprise.
  • Bills related to the Purchase and Installation of plant and machinery.
  • Bank Account Statement.

Is Registration of Micro, Small, And Medium Enterprises Mandatory?

MSME Registration for micro and small enterprises (both manufacturing and rendering of servicer) or medium enterprises that are engaged in providing services is important but optional.

However, an MSME engaged in the manufacture or production of goods has to mandatorily register under the Act. By taking into consideration the benefits that are available under the Act, it is usually suggested that every enterprise whether it is minor, medium, or small must opt for registration.

What are the Types of MSME Registrations?

The type of MSME Registration is enumerated below:

Provisional MSME Registration

The first stage of getting of MSME Registration is provisional. This is given during the period before the establishment of the business or in the pre-investment period of the firm. In this point of time, the enterprise qualifies for:

  • To obtain facilities for land, accommodation etc.
  • Obtaining necessary approvals and the NOCs.
  • To obtain clearances from regulatory bodies such as the Pollution Control Board and the Labour Regulations.
  • The provisional SSI Registration certificate (PRC) that enables small units to obtain term loans and working capital from the financial institutions and banks under the priority sector lending.

Permanent MSME Registration

The second type of MSME License Registration is permanent. It is provided to the industrial units that are already functioning. Though this act is not necessary, it is highly beneficial for the firms to have the support of the Government.

What are the Benefits of Online MSME License Registration?

Though it is not mandatory to obtain MSME license Registration for the MSMEs, however to avail the benefits of the Government schemes it is necessary to get MSME license registration. The benefits of the MSME Registration are listed below:

  • Any company having an MSME License Registration can obtain loans from banks at a comparatively cheaper rate, approximately 1- 1.5 percent, which is much lower than the normal bank rates.
  • MSMEs enjoy several tax rebates and exemptions.
  • MSMEs are allowed to carry forward the credit for MAT (Minimum Alternate Tax) for 15 years, which in the general case is ten years.
  • There are several tenders available only for the industries having MSME registration
  • MSME receives quick credit facilities from various Financial Entities.
  • Industries having registration in MSME Act are given higher preference in comparison to normal industries.
  • Companies or the industries having an MSME Certificate have better growth opportunities as they get directly enter in major national and international trade fairs and also have better opportunities to present themselves to the world.
  • MSMEs can obtain Collateral free loans as banks do not accept any collateral security for the loan amount up to Rs 10 Lakhs.
  • Industries having registration under MSME are qualified to get reimbursement of ISO Certification.

How to Get MSME license Registration without Aadhaar card?

If a person wants to get MSME license Registration he must have Aadhar card. In any case if he does not have an Aadhar card, the UAM registration shall be done by the respective DIC or MSME-DE for the business or enterprise. In the meantime the individual can also provide the documents mentioned below as an alternative for identification.

  • Enrollment copy of Aadhar card
  • Request copy of Aadhar Enrollment.
  • Any of the following: Voter Id, Passport, PAN Card, Driving License, Employee ID and Bank Passbook.

What are the Schemes Launched by Government for MSME License Registration?

Schemes launched by the Government for MSME license registration

Schemes Launched by Government for MSME License Registration

Udyog Aadhaar memorandum

Aadhar card is issued by the Government to all the individuals, as a 12 digit identification number. In Udyog Aadhar Memorandum Aadhar card is mandatory. The benefit of registering in this scheme is the ease of getting credit, subsidies, and loans from the Government. Registration here is possible in both the online and offline mode.

Zero Defect Zero Effect

In this type of mode, the goods that are manufactured for export have to maintain a certain standard, so that they do not get rejected or are not sent back to India. For achieving this, the Government had launched this scheme. Here the goods to be exported are eligible for some rebates and concessions.

Quality Management Standards & Quality technology Tools

By registering in this scheme the micro, small and medium enterprises understand and implement the quality standards that needs to be maintained along with technology. In this type of scheme various activities are conducted to sensitize the businesses with regard to new technology available through various campaigns, seminars, activities, etc.

Grievance Monitoring System

It is beneficial to register under this scheme is to check the status of business owners. In this case, the business owners can check the status of their complaints and also open them whenever they are not satisfied.

Incubation

This scheme assists the innovators with the implementation of their new ideas, design, or products. Around 75% to 80% of the project cost is financed by the Government under this scheme. This scheme promotes new designs, ideas, products, etc.

Credit Linked Capital Subsidy Scheme

According to this scheme, new technology is provided to the entrepreneurs for replacing their old and obsolete technology. A capital subsidy is provided to the business to upgrade and have better means to do their business. This micro, small and medium enterprises can directly approach the banks for these subsidies.

Women Entrepreneurship

This scheme is specially introduced for women. Women who want to start their business receive Capital, counseling, training, and delivery techniques from the Government so that they manage their business and also expand it. The Government has launched many schemes for women to encourage women empowerment.

Who has the Authority to Issue MSME License Registration Certificate?

MSME License Registration is entirely an online process. Separate Departments have been set up in different states to deal with this. Also the District Industries Centre or DIC is responsible for MSME License Registration. The DIC Department also has the authority to issue the MSME Registration Certificate along with the MSME Number.

Why Choose us for MSME License Registration?

  • Enterslice has a team of experienced and qualified professionals.
  • We offer the best services on relevant fees.
  • No hidden charges.
  • Client satisfaction is our priority.
  • We will give you an end to end assistance.

How can Enterslice Help You in MSME License Registration?

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Frequently Asked Questions

MSME is the short form for the Micro, Small, and Medium Enterprises, which is defined under the MSMED Act, 2006.

It is always better to apply for an MSME license registration before commencing the business operations as this specific registration will assist in obtaining clearance from many Government bodies.

The validity period for Provisional Registration Certificate shall 5 years.

Although it is not mandatory to obtain MSME license registration, but it is always advised to register as MSME license registration in order to avail the several government benefits, such as subsidies and incentives.

Udyog Aadhar is an Aadhar for a business which is issued by the MSME department to the MSMEs (Micro, Small and Medium Enterprises). It also comprises of 12-digit government identification number.

Banks always prefer MSMEs over regular enterprises or businesses for granting loans. Also, the interest rates on loans offered are still low for an MSME in comparison to a normal enterprise. MSMEs also receive preferential treatment in case of delay in payment. Therefore MSME License Registration is beneficial.

Yes, Aadhar Card is mandatory for obtaining Udyog Aadhar Scheme Registration. Further, if in case the applicant is other than the proprietor, then the Aadhar card of the said partner or director will be required.

No, the MSME or the Udyog Aadhar certificate is required only for a single entity regardless of multiple branches or plants. However, it shall be pertinent to note that the information regarding all the various branches or plants must be furnished

Till date, in total, 20 items are being reserved to be manufactured only by MSMEs.

The Ministry of MSME notified that Udyog Aadhar is taking a cue from the Prime Minister's radio show named “Man ki Baat” in September 2015

NSIC is the acronym form for the National Small Industries Corporation that arranges raw materials in bulk for small businesses and is also a part of the Ministry of MSME

The following listed entities are eligible to apply for an MSME Loan:

• On the Basis of Turnover: Less than Rs 5 Crore;

• On the Basis of the amount invested in the plant and machineries: Less than Rs 25 Lakhs for the Manufacturing Enterprises and less than Rs 10 Lakhs for the Service Enterprises

• On the Basis of Credit Requirement: Less than Rs 50 Lakhs.

MSME Form- 1 is used by the MSMEs (Micro Small and Medium Enterprises) to file their half-yearly returns in the context of their outstanding payments, reasons for the delay, etc.

Yes, Aadhar Card is a mandatory prerequisite for obtaining MSME Registration.

Yes, MSMEs can obtain Collateral free loans, as banks do not accept any collateral security for the loan amount up to Rs 10 Lakhs.

No, Credit Score is not necessary for MSMEs

The MSME certificate is provided online, later you can download it as per your requirement from the portal.

Yes, a Sole Proprietorship Firm is eligible to apply for MSME Registration.

Yes, Publishing Books comes under the ambit of the MSME Sector.

Yes, a new business is eligible to apply for MSME or Udyog Aadhar registration.

Yes, an individual can apply for MSME registration by visiting the government’s official portal.

The Initial Return needs to be filed on 3rd May of every year.

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