MSME Registration

MSME Registration and Udyam Registration refer to the same process. The Ministry of Micro, Small, and Medium Enterprises (MSME) introduced the Udyam Registration system on July 1, 2020, to simplify the MSME registration process.

Under this system, businesses are recognized as Udyam, and their registration process is known as Udyam Registration . Upon successful registration, enterprises receive an MSME registration certificate, enabling them to access various government benefits, financial support, and tender opportunities. This online and paperless process ensures seamless MSME recognition, promoting ease of business operations across India.

The Udyam registration certificate is also known as the MSME registration certificate.

• Business PAN Card - PAN of Business entity & Authorized Signatory
• Aadhar Card - Id proof of the business owner or Authorized signatory
• Type of Organization – Proprietorship, Partnership or Private
• Contact Details - E-mail ID and Mobile Number
• Plant and Office Address - Utility bills or rental agreements
• Bank Details – Business Bank Account details
• GSTIN Details - GSTIN Details if applicable
• Additional Info - Social Category, Business Activity code, Number of employees.

The registration process is free, with no charges for obtaining MSME registration. The registration process has to be completed on the official website of Udyam Registration. In case of any queries, please connect with the Tenders Plus team for a FREE MSME Registration consultation and avail attractive offers on other services.

• MSME Certificate

  - also known as the Udyam Registration Certificate, is an official document that certifies a business as a Micro, Small, or Medium Enterprise (MSME) under the Ministry of Micro, Small, and Medium Enterprises (MoMSME). Upon successful Udyam Registration, the certificate is issued online and contains a dynamic QR code, which allows instant access to the enterprise details on the official portal.

• Download MSME certificate

  - visit the official Udyam Registration portal online and login with your 16-digit Udyam Registration Number and mobile number. Then go to Print Udyam Certificate' option to access and download your certificate. The Udyam Registration Certificate is essential for accessing various government benefits, including tender participation, subsidies, and financial support programs.

• Visit the Udyam Registration Portal: Access the official Udyam Registration portal.
• Aadhar Number Verification: Aadhar number of the business owner or the authorized signatory for verification.
• Fill in Business Details: Complete the registration form with necessary information such as business name, type, location, and investment in plant and machinery.
• Verification through OTP: Verify through a one-time password (OTP) sent to the registered mobile number linked with Aadhar.
• Receive Udyam Registration Number: After successful verification, the system generates a unique Udyam Registration Number. It is a 19-digit Reference Number and the format is UDYAM-XX-00-0000000.

Udyam certificate is valid for a lifetime. There is no expiry of the UdyamMSME Registration Certificate.

The MSME registration is completed as soon as the Udyam MSME registration form is filled and submitted on the Udyam Registration Portal. After submission of the form, a message will be displayed on the screen about the completion of the MSME registration. The Ministry of MSME issues the Udyam Registration Certificate (or MSME Certificate), which features a QR Code for easy access to enterprise details. The unique 19-digit MSME Registration / Udyam Number serves as the permanent identity for Udyam-registered enterprises.

The turnover limit for Micro, Small, and Medium Enterprises is as follows:

• Micro enterprises: Turnover below Rs. 5 crores.
• Small enterprises: Turnover below 50 crores.
• Medium enterprises: Turnover below Rs. 250 crore.

There is no difference between Udyog Aadhaar and Udyam registration. The Udyam registration certificate is an identification of a business as an MSME. Udyog Aadhar was the old platform requiring registration for MSME. The main aim of introducing the Udyam registration is to simplify the MSME registration for small-scale businesses to easily register themselves under Micro Small Medium Enterprise.

While MSME registration is not obligatory, businesses that choose to register can access multiple benefits and incentives, facilitating growth and simplifying business operations.

More than 5.9 crore enterprises are already benefiting from MSME Registration and these businesses enjoy a multitude of benefits, ranging from financial support to preferential treatment in government procurement. Some of the key benefits are as below:

1. Financial Support and Subsidies: MSMEs registered under the MSMED Act are eligible for various financial incentives, MSME loans, and subsidies from the government. This can include priority sector lending and preferential interest rates, facilitating easier access to credit.
2. Credit Guarantee Scheme: The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free credit facilities to MSMEs, enabling MSME loans without the burden of heavy collateral.
3. Market Access and Procurement Preferences: The government aims to promote MSMEs by providing them with exclusive opportunities in government procurement. A certain percentage of government contracts on the GeM Portal is reserved for MSMEs, giving them a level playing field in competing with larger enterprises
4. Technology Upgradation Support: The government offers support for technology upgrades to enhance the competitiveness of MSMEs. This can include subsidies for adopting new technologies, implementing energy-efficient processes, and promoting innovation
5. Tax Benefits: MSMEs enjoy several tax benefits, including exemptions under the Goods and Services Tax (GST) scheme. Additionally, there are provisions for income tax rebates and reduced tax rates for MSMEs, further easing their financial burden.
6. Turnover Exemption, Work Criteria Exemption, EMD Exemption, and Security Deposit Waivers in Tender Applications: These exemptions provide MSMEs with a competitive edge when applying for tenders on GeM Portal and other eprocurement platforms, fostering equal opportunities in procurement.
7. Barcode Registration Subsidy: Subsidies for barcode registration reduce operational costs for MSMEs, promoting efficiency in product management.
8. ISO Certification Fees Reimbursement: Reimbursement of ISO certification fees incentivizes MSMEs to adhere to international quality standards.
9. Electricity Bills Concession: MSMEs receive concessions on electricity bills, reducing operational costs and improving overall financial viability.
10. Special Consideration in International Trade Fairs: MSMEs receive special consideration and support when participating in international trade fairs, promoting global exposure.

Yes, MSMEs can avail of various benefits under the GST regime such as composition scheme, threshold exemption, and input tax credit.

Yes, MSMEs can avail benefits under the National Small Industries Corporation (NSIC)

As per the amended Public Procurement Policy for MSEs, 2012, Central Government Ministries, Departments, and Public Sector Undertakings (PSUs) are required to procure a minimum of 25% of their total annual purchases from Micro and Small Enterprises (MSEs). This policy aims to promote the growth of MSMEs in India by providing them with greater opportunities in government tenders and ensuring their participation in the public procurement system.