Govt and legal proceedings

Why should you register your company as an MSME?

Your complete guide to MSME registration benefits, process and criteria.

CS Jigar Shah
3rd Apr 2019
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What is MSME: MSME stands for Micro, Small and Medium Enterprises.

MSME Government has started various schemes and incentives to promote small scale industries and to avail such incentives, MSME registration is mandatory. MSME registration online received after filling MSME Registration Application form. 


MSME Registration Eligibility Criteria:

Only Manufacturing and Service Company can register (Any type of Product Manufacturer or Service Provider). Traders are not allowed to register.


MSMEs are classified into two categories:

  1. Manufacturing Enterprise: The enterprises engaged in the manufacture or production of goods pertaining to any industry or employing plant and machinery in the process of the value addition to the final product having a distinct name or character or use. They are defined in terms of investment in Plant & Machinery.
  2. Service Enterprise: The enterprises engaged in providing or rendering of services. These enterprises are defined in terms of investment in equipment.


The limit for investment in machinery / equipment for manufacturing / service enterprise are as under:

MSME classification


Registration Process:

MSME Registration is an optional and zero registration fees. MSME Registration is also called Udhyog Aadhar Registration. The registration process is very simple and requires a few documents. Read on further to know the documents required and registration process in MSME sector.


Documents/information required to register are as follows:


Regarding Applicant: Aadhar No of the applicant, Name, Gender, PAN, Mobile No & Email Id.


Regarding Business Enterprise: PAN, Location, address of MSME Enterprise, No of employees, Date of starting Business, Bank account number and IFSC, Business activities of the enterprise, Investment in Plant and Machinery/Equipment, MoA & AoA, copies of sales bill and purchase bill.


Step by step guide to MSME registration process:

  1. Start registration process by clicking here.
  2. Fill basic details in MSME registration form. It will include all necessary details of your business.
  3. You are required to provide your personal details and a photo needs to be uploaded within permissible limits. Some information are mandatory to fill during the registration process.
  4. Application will be reviewed and any discrepancy will be notified to you.
  5. Once the process completes, you will get the MSME certificate. The Ministry will not issue any hardcopy for it. You will get a virtual certificate.


Benefits of MSME Registration:


Benefits of MSME Registration


Who can apply: 

MSME has also specified regarding applicants as per business type. Applicant should be – Proprietor for Proprietorship, any member for HUF, Any partner for Partnership / LLP, Any director for Pvt. Ltd. And for other enterprise any member of such an enterprise can be the applicant.


MSME schemes launched by the Government are:

  1. Udyog Aadhar memorandum
  2. Quality Management Standards and Quality technology tools
  3. Zero Defect Zero Effect
  4. Incubation
  5. Grievance Monitoring System
  6. Credit Linked Capital Subsidy Scheme
  7. Women Entrepreneurship
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