MSME Registration
in India
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MSME Registration- An Overview
MSME stands for Micro, Small, and Medium Enterprises, which are considered one of the backbones of the Indian economy. These industries are often referred to as Small Scale Industries (SSIs). It is highly recommended that every MSME-based business obtain MSME registration from the Government of India and enjoy subsidies, rebates, and other financial benefits to empower their business venture.
Recently, the MSME Udyam registration process replaced the old micro, small, and medium enterprise registration process, making it easier and faster to register MSME online. Businesses that meet the MSME criteria can apply for registration on the official Udyam portal, where they will receive a permanent registration number online. Get expert help to MSME register online and save your money and time.
What is MSME Udyam Registration?
MSME Udyam registration is essentially an MSME registration that every Micro, Small, and Medium Enterprise in India should obtain from the Government of India. While it is not mandatory for an MSME to have this registration, having it provides access to various government benefits, including tax incentives, establishment support, credit facilities, and loans.
To facilitate this process, the Government of India, through the Ministry of MSME, has launched the Udyam registration official portal. This initiative aims to digitize India and streamline the micro small and medium enterprises registration process, making it more efficient and accessible for business owners.
Benefits of MSME Online Registration
MSME registration allows businesses to access various benefits and support schemes from the Government of India, helping them grow effectively. Below is a list of the benefits associated with MSME online registration in India:
Access to Cheaper Loans
MSME registration holders can access loans with interest rates as low as 1 to 1.5% comparatively much lower than the regular loan.
Credit Relating to MAT
MSMEs can carry forward minimum alternate tax (MAT) credits for up to fifteen years instead of the usual ten years.
Rebates and Concessions
MSME company registration ensures the availability of various rebates and concessions for registered businesses.
Concessions on Patent Registration
MSME Udyam registration holders are eligible for concessions on patent registration costs.
Access to Government e-Marketplace
Registered MSMEs can utilize the Udyam Registration Portal to access the Government e-marketplace and participate in e-tenders.
One-Time Settlement Fee
MSMEs facing payment issues with vendors can benefit from a one-time settlement fee.
Government Schemes Benefits
Udyam Registration assists MSMEs in securing benefits from various government schemes designed to support their growth.
Priority Sector Lending
Entities with MSME company registration are eligible for priority sector lending from banks, facilitating easier access to funds.
Government Security Deposit Waiver
MSMEs can benefit from a government security deposit waiver, making it advantageous when participating in e-tenders.
Subsidy for Barcode Registration
MSME online registration ensures access to subsidies for barcode registration, enhancing product visibility.
Exemption on Direct Taxes
Registered MSMEs can benefit from exemptions on direct taxes through various tax-saving schemes.
Entities Eligible to Register MSME Online
The entities eligible to register MSME online are as follows:
Sole Proprietorship
Cooperative Societies
Hindu Undivided Family (HUF)
One-person Companies
Partnering Firm
Limited Liability partnership
Association of Persons
Any other undertakings
MSME Classification
Micro businesses are defined as having an investment of up to ₹1 crore in plant and equipment or machinery and an annual turnover of up to ₹5 crore.
A small business is defined as having an investment of up to ₹ 10 crore in plant and equipment or machinery and an annual turnover of up to ₹50 crore.
A medium business is defined as having an investment of up to ₹ 50 crore in plant and equipment or machinery and an annual turnover of up to ₹200 crore.
Documents Required to Register MSME in India
The list of documents required to register MSME in India are as follows:
Aadhar Number
GSTIN (In case of Company or LLP, Cooperative Society or Society or Trust)
Registered office address
PAN CardAddress of the Business
Bank Account Number
Description of Business Activity
NIC 2-Digit Code
Details of Investment
Details of Turnover
Partnership Deed (if Applicable)
Sales and Purchase Bill Copies
Copies of Licenses and Bills of Purchased Machinery
Step-by-Step MSME Online Registration Process
Here, given below is the step-by-step MSME online registration process:
Top Industries that Prefer MSME Registration
| Key Industries | Other Significant Industries |
|---|---|
| Manufacturing Industry | Renewable Energy |
| Textiles and Apparel Industry | Media and Entertainment |
| Food Processing Industry | Chemical Industry |
| Construction and Real Estate | Logistics and Supply Chain |
| Agriculture and Agribusiness | Automotive Industry |
| Pharmaceutical Industry | Tourism and Hospitality |
| Retail and E-commerce | Leather and Footwear |
Tax Implications of MSME Registration
MSME registration indeed facilitates several benefits and concessions and various other financial support and streamlines compliances ensuring small businesses’ growth and sustainability. Here given below are the tax implications of MSME registration.
Tax Benefits & Concessions
Lower corporate tax rate, and facilitate various deductions under Income Tax Act like business expenditures, deprecation, and interest on loans.
Features of MSMEs Registration
Some of the common features of MSMEs are as follows:
MSME creates several job opportunities in both rural and urban areas.
It significantly contributes towards improving the lives of their employees and artisans.
MSME constantly strives to bring modernization, innovation, and expansion in technology and infrastructure in the industry in which they operate their business.
The products from MSME are usually less expensive as compared to other international brands.
MSME never fails to follow the latest global trends and bring innovation to the products they manufacture.
They are equipped to avail of loans from the banking institutions.
Post Registration Compliance for MSME Registration
After completion of MSME registration or MSME register online, the concerned business must follow the post-registration compliance to keep running the business operations:
MSME Form 1 Submission
Specified MSME companies must submit MSME Form 1 every six months to the Ministry of Corporate Affairs (MCA)
MSME Registration Vs Udyam Registration
MSME registration is now commonly known as Udyam registration. It’s essential to understand the difference between MSME registration and Udyam registration for a fair overview. Have a look at the breakdown of MSME registration Vs Udyam registration:
| No | Aspect | MSME Registration | Udyam Registration |
|---|---|---|---|
| 1. | Method of Registration | Aadhar card and PAN number are required | Only the applicant’s Aadhar card is required |
| 2. | Integration of Other Portals | Not integrated with other govt portals | Fully integrated with other MSME portals |
| 3. | Registration Form | Requirement of minimal details | Comprehensive details are required |
| 4. | Number of Registration | Can be registered multiple times with different corporate names | It can be obtained by a single person with a single Aadhar card |
Why Opt for MSME Udyam Registration for Your Business?
MSME company registration is eligible for obtaining collateral-free loans from various financial institutions in India.
MSME online registration allows businesses to avail of the benefits of overdraft interest subvention.
MSME Udyam registration is also eligible for industrial promotional subsidy from the government.
MSME company registration also facilitates a free ISO certification.
It upscales and enhances the MSME business operations.
Reasons to Consider Corpbiz for MSME Online Registration
10,000+ Successful MSME Registrations
We have assisted in the successful completion of 10,000+ MSME online registrations in India.
85% Faster Process
We ensure micro small and medium enterprises registration 85% faster than the industry average.
10+ Years of Experience
We have more than a decade of experience in fulfilling the dreams of passionpreneurs
Hassle-Free Process
We simplify the MSME Udyam registration process, managing all the related documentation and formalities.
End-to-end Assistance
We provide end-to-end support and empower businesses with our micro small and medium enterprises registration services.
Compliance Experts
Our consultants are well-versed with compliance matters related to MSME online registration.
98% Client Satisfaction Rate
We maintain a high client satisfaction rate, 98% of our clients have reported positive experiences.
Up to 25% in Tax Savings
Businesses registered with us under MSME enjoy up to 25% in tax savings through exemptions.
90% Cost Efficiency
Our MSME online registration services reduce registration costs by up to 90%.
Frequently Asked Questions on MSME online registration:
Is MSME registration replaced by Udyam registration?
Is it mandatory to have an Aadhar card for obtaining Udyam registration?
Do new businesses have access to MSME registration?
What is the validity of Udyam registration certificate?
Do trading companies fall under MSME?
Do I need to secure separate registration for production facilities in different cities?
What are MSME registration charges?
Who is eligible for MSME online registration?
What are the documents required for MSME register online?
Is an MSME certificate mandatory?
Authors
Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.
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