Udyam Certificate/MSME Online Registration

Learn how to register as an MSME and enjoy the benefits of participating in this sector in India. MSMEs are crucial to the country's socio-economic development and are regulated by the Ministry of Micro, Small & Medium Enterprises. Registering under the Micro, Small, and Medium Enterprises Development Act is mandatory for MSMEs to use the various government schemes. These industries contribute significantly to the economy, with 95% of all industrial units, 45% of industrial jobs, and 50% of total trades or exports. They are also known as small-scale industries or SSIs.

MSME stands for Micro, Small, and Medium Enterprises. It refers to businesses that fall within a specific size and investment range. In India, MSMEs play a crucial role in the economy, contributing significantly to employment generation and economic growth. The government of India has implemented various policies and schemes to support and promote the development of MSMEs, such as easy access to credit, subsidies, tax benefits, and training programs.

The Micro, Small, and Medium Enterprises Development Act of 2006 classifies MSMEs or Micro, Small, and Medium Enterprises into two types:

• Manufacturing Enterprises, which are involved in the production or manufacturing of goods in the industry.
• Service Enterprises, which are engaged in providing or supplying services.

• The loan interest rate is significantly lower for MSMEs than for regular loans.
• When an individual register for Udyog Aadhar in India, the bank loans provided to MSMEs become much cheaper, with an interest rate of around 1 to 1.5%.
• Registered MSMEs are eligible for credit for Minimum Alternate Tax (MAT), which can be carried forward for up to 15 years instead of the regular 10 years.
• Many government tenders are exclusively offered to MSME industries.
• MSMEs have easy access to loans and credit.
• Registered MSMEs enjoy concessions and reimbursements, which reduce the cost of setting up a business unit or receiving evidence.
• Registered MSMEs receive higher preference in the government certification and license process.
• A Time Settlement Fee is imposed for all non-paid amounts of the MSME certificate.

To obtain an MSME registration certificate, an entity must first obtain registration under MSME. The entity must follow these steps for the MSME registration certificate:

• Go to the government portal, "udyamregistration.gov.in", to complete the MSME registration process online.
   
• There are two categories available on the portal for registration:
  • a) Registration for new entrepreneurs who hold EM-II (Entrepreneurship Memorandum - II) or who are not yet registered as MSMEs.
  • b) Registration for those who already have UAM (Udyog Aadhar Memorandum) or who have acquired UAM through Assisted Filing.

1. To register as a new enterprise or one without MSME registration, click "For New Enterprises who are not Registered yet as MSME or those with EM-II" on the homepage of udyamregistration.gov.in.
2. Fill in your Aadhaar details and the business owner's name on the form provided.
3. Click "Validate and Generate OTP" to generate an OTP sent to the mobile number registered with Aadhaar.
4. Validate the details using the OTP, and a page for PAN verification will appear.
5. Enter the type of organization and PAN details, and validate the same. The portal will verify the PAN details from the Income Tax Portal or government database.
6. Once the PAN is successfully verified, an Udyam Registration form will appear. Fill in the details, including mobile number, email address, plant details, turnover, number of employees, and other necessary details.
7. Click "Submit and Get Final OTP" once all details are filled in.
8. The MSME registration process will be complete, and a message with a reference number will be generated automatically.

After verifying the furnished details, the MSME authority will issue the registration certificate.

• To avail of the MSME registration certificate, applicants already registered with Udyog Aadhar Memorandum (UAM) can click on 'For those having registration as UAM' or 'For those already having registration as UAM through Assisted filing' on the website homepage.
• The applicant can receive the OTP for validation on the email or mobile number given under the UAM.
• After entering the Udyog Aadhar Number, the applicant will be prompted to choose an option for generating OTP, which can be received via mobile or email.
• Click on 'Validate and Generate OTP' and enter the OTP received by the applicant.
• Once the details are validated successfully, the registration details must be filled in the MSME registration form to complete the registration process with Udyam.

The cost of MSME registration varies depending on the registration entity chosen. If you register through the government website, there is no fee for MSME registration, but the process can be arduous and challenging. You may need to repeatedly fill out forms. Therefore, if you choose to work with a specialized organization like ours, which has skilled consultants to handle the registration process, a nominal fee for MSME registration will be charged.

The recent economic package "Atma-nirbhar Bharat Abhiyaan" announced by the finance minister of India, Nirmala Sitharaman, has eliminated the distinction between service and manufacturing enterprises. The investment amount and annual turnover criteria have been made the same for both types of industries.

Existing:

Revised:

These are the existing and revised definitions of MSMEs under the recent Atma-nirbhar Bharat Abhiyaan Economic Package announced by the Finance Minister of India, Nirmala Sitharaman. The package removes the difference between services and manufacturing enterprises by making the investment amount and annual turnover similar for both sectors.

Here are the required documents and information needed for MSME Registration in India:

• Aadhar Card of the applicant
• Name of the Owner as per Aadhar Card
• Social category of the applicant
• Gender and Physical status of the applicant (whether physically disabled or not)
• Name and type of enterprise
• PAN Number
• Official address of the enterprise's plant
• Date of incorporation of the business
• Details of previous registration of the enterprise, if any
• Bank details of the enterprise
• Nature of business operations - "Service" or "Manufacturing"
• NIC Code
• Employment details such as the total number of workers or employees in the organization
• Information on investment in machinery and equipment in the organization.

1. To register for MSME in India, applicants must fill in the necessary details in the registration application form and submit it to the concerned department. This can be done online or offline.
2. Collect all the required documents as prescribed in the MSME registration application form, which usually takes 1 to 2 working days to complete.
3. Upload the necessary documents and submit the application form to the Registrar of Udyog Aadhar MSME. Regulatory authorities will then verify the authenticity of the documents submitted by the applicant. This processing and verification typically take another 2 working days.
4. Once the regulatory authorities are satisfied with the documents and submissions made by the applicant, the applicant's company will be registered under MSME.