MSME Certificate Registration

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India's economy as they are the backbone of the country's industrial sector. With a population of over 160 crore people, there is a significant potential for growth for small industries in the country. To take advantage of the various benefits offered by the government, small-scale industries (SSIs) should register themselves as MSMEs. 

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MEMS Certificate Registration

This registration can be obtained under the MSME Act, regardless of whether the company is involved in manufacturing or service-providing activities.

What is an Udyam or MSME Certificate?

The MSME Certificate or Udyam Certificate is a document that micro, small, and medium enterprises can obtain by registering with the Indian government. This registration provides access to multiple benefits and government schemes, proving that the business is a registered small-scale entity in India and eligible for associated government benefits.

While MSME registration is not mandatory, it is recommended as it offers several advantages in terms of business finance, loans, credit eligibility, and taxation. The government has disbursed a total of Rs.9.5 trillion in loans to MSMEs in FY21, which is a 40% increase from FY20. Additionally, various government schemes and policies are in place to support the growth and development of MSMEs in India.

Eligibility Criteria for MSME Registration

An enterprise's classification as a micro, small, or medium enterprise shall be based on the following criteria:

Enterprise Classification

Investment in plant and machinery or equipment

Turnover

Micro-enterprise

Not exceeding one crore rupees

Not exceeding five crore rupees

Small enterprise

Not exceeding ten crore rupees

Not exceeding fifty crore rupees

Medium enterprise

Not exceeding fifty crore rupees

Not exceeding two hundred and fifty crore rupees

Benefits of MSME Registration Certificate

  1. Tariff, tax, and capital subsidies
  2. Low-interest business loans
  3. Easy approvals, registrations, and licenses
  4. 15% subsidy on automatic machines with bank loans
  1. Compensation for ISO certificate expenditure
  2. Access to government tenders
  3. Exemption under Direct Tax Laws

How to Register for an MSME Certificate?

The MSME registration process is free, completely paperless, and based on self-declaration. To register for Udyam, the required form is available on the Udyam Registration portal. No additional documents or proof are required to register an MSME, and only an Aadhaar Number is sufficient for registration. Investment and turnover details linked to PAN and GST will be automatically extracted from government databases. You may keep copies of your PAN card, Aadhar card, Bank account details, and complete postal address (including district and pin code) handy.

If an enterprise already has EM-II, UAM registration, or any other registration issued by any authority under the Ministry of MSME, it must re-register. Each enterprise is allowed only one Udyam Registration, but they can add multiple activities, including manufacturing or services, in a single registration.

To download an MSME Certificate online, an enterprise can register under the MSME Act by applying through the government portal. Upon successful registration, the Ministry of MSME issues an MSME certificate, also known as an Udyam or Udyog Aadhaar Certificate, with lifetime validity. Follow these simple steps to download the certificate from the Udyam Registration website:

Step 1: Go to the Udyam link https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

Step 2: On the top right corner of the webpage, select the Print/Verify drop-down menu.

Step 3: Choose the option ‘Print Udyam Certificate’ from the menu. This will take you to the Udyami Login page.

Step 4: Enter your 16-digit Udyam Registration Number (format: UDYAM-XX-00-0000000) and the mobile number filled in the MSME registration application on the login page.

Step 5: Select an OTP option convenient for you and click on ‘Validate & Generate OTP.’ You can get OTP on mobile or email as per the application details.

Step 6: Enter the received OTP and click on ‘Validate OTP & Print.’ The Udyog Aadhaar Certificate data will appear on the home screen.

Step 7: To get a certified copy, select ‘Print’ or ‘Print with Annexure’ from the top center of the page.

If you choose to print with Annexure, you will receive the certificate along with the Udyam Aadhaar Memorandum (UAM) application. You can also save the certificate as a PDF on your computer or smartphone for future reference. There will be no need for renewal of Registration.

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How to Check MSME Registration by Name

To verify MSME registration by name, you need to have the Udyam Registration Number as well as the mobile number linked with the Aadhaar. The following is a stepwise procedure to check MSME Registration by Name:

Step 1: Visit the official website of MSME at Udyog Aadhaar (Official Website for MSME Registration).

Step 2: Enter your Udyog Aadhar Number.

Step 3: Enter the mobile number that is linked with the Aadhar Card.

Step 4: Enter the verification code and click on ‘Validate Udyog Aadhar.’

You can also check MSME Registration by Name on the MSME Databank. However, note that you need to provide either the Udyog Aadhar Number or the Registration number in both cases.

How to Track the Status of Your MSME registration process

To check the status of your MSME Registration or Udyam Registration, follow the steps below:

Step 1: Visit the Ministry of MSME's official website https://www.udyamregistration.gov.in/UA/UA_VerifyUAM.aspx.

Step 2: Enter your Udyog Aadhaar number in the box provided.

Step 3: Verify your entry by entering the Captcha Code.

Step 4: Click on the 'Verify' option. The status of your Udyog Aadhaar Registration will be displayed on the screen.

How to Retrieve Your Udyam Registration Number

If you have forgotten your UAM/Udyam registration number, you can retrieve it using the OTP verification method. Here are the steps to follow:

Step 1: Choose the appropriate registration option (Udyog Aadhaar Memorandum or Udyam Registration)

Step 2: Select the OTP option that you had filled in on the application form (Mobile or Email)

Step 3: Enter the Mobile number or Email ID that you provided during the registration process.

Step 4: Click on the 'Validate & Generate OTP' button. You will receive an OTP on the selected option.

Step 5: Enter the OTP and click on the 'Validate OTP' button.

Step 6: Once the OTP is successfully verified, you will be redirected to the registration page where you can retrieve your UAM/Udyam registration number.

It is important to note that the OTP will be valid only for a limited time period, usually 10-15 minutes. If you fail to enter the OTP within this time, you will have to generate a new OTP. Additionally, you must ensure that the Mobile number or Email ID you provide is the same as the one you used during the registration process.

Important Points to Keep in Mind while Registering for an MSME Certificate

  1. There is no fee for filing the registration.
  2. In order to register, an Aadhaar number is necessary, and for a proprietorship firm, it should be the proprietor's Aadhaar number.
  1. For a partnership firm, it should be the managing partner's Aadhaar number, and for a Hindu Undivided Family (HUF), it should be the karta's Aadhaar number.
  2. In the case of a company, limited liability partnership, cooperative society, society, or trust, the organisation or its authorized signatory must provide its GSTIN, PAN, and Aadhaar number.
  3. If an enterprise is registered as an Udyam with PAN, any deficiency of information for the previous years when PAN was not available can be filled up based on self-declaration.
  4. Each enterprise is allowed only one Udyam Registration, but they can add multiple activities, including manufacturing or services, in a single registration.
  5. Anyone who intentionally misrepresents or attempts to suppress self-declared facts and figures during the Udyam Registration or updation process will be liable for a penalty specified under Section 27 of the Act.
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FAQs on MSME Certificate

  • What is an MSME Certificate, and what benefits does it provide?

    An MSME Certificate or Udyam Certificate is a document that micro, small, and medium enterprises can obtain by registering with the Indian government. This registration provides access to multiple benefits and government schemes, proving that the business is a registered small-scale entity in India and eligible for associated government benefits. 

  • What is the difference between MSME and Udyam Registration?

    There is a misconception that MSME registration and Udyam Registration are two distinct registrations, but this is not true. The Ministry of Micro, Small, and Medium Enterprises oversees both registrations to protect MSME rights and provide them with additional benefits and facilities compared to larger corporations. The name was changed from MSME Registration to Udyam Registration after the registration process was updated and improved, and new qualifying requirements were introduced for MSMEs. In summary, both MSME and Udyam Registration serve the same purpose of promoting and developing MSME enterprises.

  • What are the benefits of an MSME registration certificate?

    The benefits of an MSME registration certificate include tariff, tax, and capital subsidies, low-interest business loans, easy approvals, registrations, and licenses, a 15% subsidy on automatic machines with bank loans, compensation for ISO certificate expenditure, access to government tenders, and exemption under Direct Tax Laws.

  • Is MSME registration mandatory in India?

    No, MSME registration is not mandatory in India, but it is recommended as it offers several advantages in terms of business finance, loans, credit eligibility, and taxation. 

  • Can an enterprise have multiple activities under a single MSME registration?

    Yes, each enterprise is allowed only one Udyam Registration, but they can add multiple activities, including manufacturing or services, in a single registration.

  • What is the validity of the MSME certificate?

    Upon successful registration, the Ministry of MSME issues an MSME certificate, also known as an Udyam or Udyog Aadhaar Certificate, with lifetime validity. 

  • What are the eligibility criteria for MSME registration in India?

    An enterprise's classification as a micro, small, or medium enterprise shall be based on the investment in plant and machinery or equipment and turnover. For example, a micro-enterprise has an investment not exceeding one crore rupees and a turnover not exceeding five crore rupees. 

  • Can a person register multiple MSMEs?

    Yes, a person can register multiple MSMEs. There is no restriction on the number of MSMEs a person can register. However, each MSME must have a unique name and registration number. 

  • Is it necessary to have a business bank account for MSME registration?

    No, it is not mandatory to have a business bank account for MSME registration. However, having a separate bank account for the business can help in better management of finances and can also help in availing various government schemes and benefits.

  • Can a business with multiple branches or locations register as an MSME under a single registration?

    Yes, a business with multiple branches or locations can register as an MSME under a single registration. However, each branch or location should have a separate registration if it has a different Aadhaar or PAN card number. The registration of the main branch or head office would be considered the primary registration, and the other branches or locations would be considered additional locations.

About the Author

Kankana Mukherjee Author

Kankana Mukherjee

Kankana Mukherjee is an engineer and has over 4.5 of experience in content writing. Combining the expertise in financial content writing achieved in her 2 years association with BankBazaar, and a knack for clear and engaging content, Kankana simplifies complex financial concepts and offers practical insights to help readers make informed decisions and achieve financial success.

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