MSME Registration

If you have a MSME registration, as per the MSME act, your business is able to access multiple benefits from both the Central and State Governments.

MSME Registration in India – Benefits Eligibility, Documents & Process

MSME means Micro, Small and Medium Enterprises which are the backbone of India’s economy. Contributing Significantly to businesses growth and creation of employment with the rapid changing face of economy, in a country like India which is still considered as Tending (or under development), an organized sector by MSMEs.

For these enterprises, the MSME Act was introduced on 2nd October 2006 which provides benefits, subsidies and facilities. It’s easy to register for, online and with minimal paperwork — all of which makes it popular among entrepreneurs.

Classification of MSME

MSME Registration can only be applied by service providers and manufacturers.

Here’s how enterprises are classified:

1. Micro Enterprises: Investment upto ₹1 crore & turnover up to ₹5 crore
2. Micro Enterprise – Investment up to ₹1 crore & turnover less than ₹5 crore
3. Medium Enterprises – Investment up to ₹50 crore & turnover up to ₹250 crore

Key Benefits of MSME Registration

Collateral-Free Bank Loans

Loans even without any security for MSMEs! Credit guarantee schemes by SIDBI ensure easy funds for businesses.

Patent Registration Subsidy

MSMEs are benefitted with 50% subsidy for patent registration charges to encourage innovation, research and product development.

Protection Against Delayed Payments

Buyers will have to honour payments to MSMEs within 15 days. If payment extends past 45 days, the buyer is required to pay interest. This has the side effect of promoting small business financial security.

ISO Certification Reimbursement

MSMEs can get the entire expense on ISO Certification cost reimbursed and this acts as an incentive to ensure globally acceptable quality.

Discounted Electricity Bills

The cost structures and production efficiency of already-registered MSMEs gets supported by discount on power bills.

Eligibility Criteria for MSME Registration

1. Manufacturing & service industries, retail and wholesale enterprises if they are within the prescribed investment & turnover.
2. Person, Start-ups.com, Entrepreneurship.com.cc,.com.in.br.org.in.co.net Proprietorships firms / Partnership firms LLP (Limited liability partnership) private limited company Public Limited Company Trust cooperative society SHG’S.

Documents Required for MSME Registration

Aadhar Card –

o Proprietorship – Proprietor’s Aadhaar

o Partnership- Aadhaar of the Managing Partner

o HUF – Karta’s Aadhaar

o Company / LLP/ Trust/Society – Aadhaar of Authorised Signatory / Director

PAN Card

GSTIN (GST Identification Number)

MSME Registration – Online Process

The registration process is through the Udyam Portal. You can apply in two ways:

1. New Registration – For those entrepreneurs who have never registered under MSME.
2. Migrate/Re-register – Existing Udyog Aadhaar Memorandum (UAM) holders go through it.

For New Enterpreneurs or EM-II Holder:

1. Visit the Udyam portal → Click on “New Registration”.
2. Input Aadhaar → Verify with OTP
3. Enter PAN number → Verify PAN
4. Enter the Enterprise Details, Turnover & Investment Information
5. Apply → Get OTP → You will get MSME Certificate on Email

For Existing UAM Holders:

Select the option “Migrate to Udyam” on the portal

Input Udyog Aadhaar Number → Click on Generate OTP (on mobile/email)

How to Register Your Udyam:

Step 1: Fill Udyam Registration Form →

Step 2: Click on Submit →

Step3: Certificate generated

How GarudaMudra Can Help You?

At GarudaMudra, we simplify MSME Registration in only 4 simple steps:

1. Collecting your documents
2. Filing the application
3. Securing MSME Registration
4. Delivering your certificate

We make sure that the issuing and approval of your MSME license is a hassle-free process.