Certification for investment in Plant & Machinery by MSMEs

MSME registration officially recognises the Micro, Small, and Medium Enterprises (MSMEs) in India and provides them with various government benefits to grow their business.

Key Takeaways:

The government introduced MSME registration to provide benefits for the establishment and continuation of various small and medium scale businesses in India.
MSME registration online can be done on the Udyam portal.
MSME registration is not mandatory but is required to obtain benefits for the business.
There is no MSME registration fees.
No documents are required for MSME registration online.

What is MSME Registration?

The government introduced the MSME registration, also known as Udyam registration, in 2006 for small and medium scale businesses in India. It is not mandatory for MSMEs to obtain this registration, but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

The MSME registration is entirely online and can be obtained from the Udyam registration portal. The entities that fulfil the below MSME classification can apply for MSME registration.

Initially, the government classified and recognised any business or enterprise as MSMEs based on their investment criteria in plant and machinery or equipment. Later, the government revised the MSME classification by inserting annual investment and turnover criteria.

MSME Registration Eligibility

All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification limits can apply for MSME registration. The following entities that fulfill the MSME annual turnover and investment criteria are eligible for MSME registration:

Individuals, startups, business owners, and entrepreneurs
Private and public limited companies
Sole proprietorship
Partnership firm
Limited Liability Partnerships (LLPs)
Self Help Groups (SHGs)
Co-operative societies
Trusts

Documents Required for MSME Registration

The MSME registration documents are as follows:

number
PAN number

However, these documents need not be uploaded on the Udyam portal for registration. MSME owners must only enter their Aadhaar number. PAN and GST-linked details of the enterprises will be taken automatically by the Udyam Registration Portal from the Government database. GST registration is not compulsory for MSMEs that do not require a GST registration under the GST law. However, enterprises that mandatorily must obtain a GST registration under the GST law, must enter their GSTIN for obtaining the MSME registration or Udyam registration.

How to Apply for MSME Registration Online?

The MSME registration process is entirely online. MSMEs must visit the Udyam registration portal (udyamregistration.gov.in) for completing MSME registration.

MSME registration online can be done under the following two categories –

For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and
For those having registration as UAM and For those already having registration as UAM through Assisted filing
For New Entrepreneurs who are not Registered yet as MSME or those with EM-II
Step 1: New entrepreneurs and entrepreneurs having EM-II registration need to click “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” as shown on the home page.

Step 2: On the next page, enter the Aadhaar number and the name of the entrepreneur. Next, click on the “Validate and Generate OTP Button” and enter the OTP to verify PAN.

Step 3: Enter the “Type of Organisation” and the PAN number and click on the “Validate PAN” button. The portal will fetch the PAN details from the government database and validate the PAN number of the entrepreneur.

Step 4: After verification of PAN, the Udyam Registration form will appear. Entrepreneurs need to fill in their personal details and details of their enterprise.

Step 5: Enter the investment and turnover details, select the declaration, and click on the “Submit and Get Final OTP” button. Enter the OTP and submit the form.

Step 6: The Udyam Registration Certificate will be sent through email.

Registration For Entrepreneurs Already Having UAM
For those already having UAM registration, they need to click the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” shown on the home page of the Udyam portal and enter the Udyog Aadhaar Number. Next, an OTP option should be selected.

The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM. After choosing the OTP Options, click on “Validate and Generate OTP”. After entering OTP, fill in the registration details on the MSME registration form, and the Udyam registration will be complete.

MSME Registration Fees
There are no fees charged by the government for MSME registration. It is free of cost on the official website, i.e., Udyam registration portal.