Comprehensive Guide to MSME Registration in India

The Micro, Small, and Medium Enterprises (MSME) sector is a crucial pillar of India's economy, contributing nearly 30% to the GDP, 45% of exports, and generating employment for over 11 crore people. Recognizing their importance, the Government of India has revamped MSME classification to facilitate ease of business and support growth. Earlier, MSMEs were classified based on investment in plant, machinery, or equipment, but now, investment and annual turnover are both considered. Additionally, the distinction between manufacturing and service sectors has been removed, simplifying the classification process.

Latest MSME Classification (as per Budget 2025)

The MSME classification criteria have been revised to accommodate growing businesses. The updated classification is as follows:

What is Udyam Registration?

MSME registration, commonly referred to as Udyam Registration, is a government initiative that allows businesses to register as an MSME through the Udyam portal. Although this registration is not mandatory, it provides several benefits, including tax exemptions, priority sector lending, easier access to credit, government subsidies, and various other financial incentives.

The significance of MSMEs in India's economic framework is evident from their contributions:

• Over 1 crore registered MSMEs
• Employment for 7.5 crore individuals
• Contribution of 36% to India’s manufacturing sector
• 45% share in national exports

Eligibility for MSME Registration

Entities that fall within the revised MSME classification and engage in manufacturing, services, wholesale, or retail trade are eligible for registration. Eligible entities include:

• Individuals, start-ups, and business owners
• Private and public limited companies
• Sole proprietorships
• Partnership firms
• Limited Liability Partnerships (LLPs)
• Self Help Groups (SHGs)
• Co-operative societies
• Trusts

Documents Required for MSME Registration

The registration process requires minimal documentation. The key documents include:

• Aadhaar Card
• PAN Card

Please note that there are no MSME registration fees, and physical document submission is not required. The Udyam Registration Portal is integrated with the Income Tax and GSTIN systems, which automatically fetch details related to investment and turnover.

Note: Enterprises that require GST registration under GST laws must enter their GSTIN while applying for Udyam Registration.

Step-by-Step Process for MSME Registration

The entire registration process is online and can be completed on the Udyam Registration Portal (udyamregistration.gov.in). There are no fees for registration.

1. Registration for New Entrepreneurs (Including Those with EM-II)

Step 1: Visit the Udyam Registration Portal.

Step 2: Click on ‘For New Entrepreneurs who are not Registered yet as MSME’.

Step 3: Enter the Aadhaar number and name of the entrepreneur.

Step 4: Click ‘Validate and Generate OTP’ and enter the OTP received.

Step 5: Enter PAN details and click ‘Validate PAN’.

Step 6: Fill in enterprise details, including investment and turnover.

Step 7: Submit the form and enter the final OTP.

Step 8: Upon successful submission, the Udyam Registration Certificate will be issued via email.

2. Registration for Enterprises with UAM

Step 1: Click on ‘For those having registration as UAM’ on the homepage.

Step 2: Enter the Udyog Aadhaar Number (UAM).

Step 3: Choose an OTP option (mobile or email) and generate OTP.

Step 4: Enter the OTP and complete the registration form.

Step 5: Submit the form to complete Udyam registration.

MSME Registration Certificate and Number

Upon successful registration, the Ministry of MSME issues an e-certificate known as the Udyam Registration Certificate, which includes a QR code for easy access to enterprise details. The Udyam Registration Number (URN) is a permanent 19-digit identification number assigned to registered MSMEs.

How to Check MSME Registration Status

Step 1: Visit the Udyam Registration Portal.

Step 2: Click on ‘Verify Udyam Registration Number’ under the ‘Print/Verify’ section.

Step 3: Enter the Reference Number, solve the captcha, and click ‘Verify’.

How to Download MSME Registration Certificate

Step 1: Visit the Udyam Registration Portal.

Step 2: Click on ‘Print Udyam Certificate’ under the ‘Print/Verify’ section.

Step 3: Enter the URN and registered mobile number.

Step 4: Choose the OTP option and validate.

After verification, download and print the certificate.

Benefits of MSME Registration

Registering as an MSME unlocks multiple benefits, including:

• Cheaper Business Loans

  MSMEs get credit at lower interest rates (1-1.5%) compared to standard loans.

• Extended MAT Credit Period

  The credit period for Minimum Alternate Tax (MAT) has been extended to 15 years from 10 years.

• Government Subsidies & Incentives

  MSMEs receive subsidies on patents, industrial setup, and other costs.

• Priority in Government Tenders

  The Udyam Portal is integrated with Government e-Marketplace (GeM), offering easy access to e-tenders.

• One-Time Settlement Scheme

  MSMEs can settle unpaid dues via a one-time settlement scheme.

• Financial Support for Innovation

  Access to schemes like Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, and Public Procurement Policy.