MSME Registration in India: Procedure and Required Documents

Last Updated at: Dec 23, 2020
MSME Registration In India _ Procedure, Documents Required

AEPC requests for a further hike in outstanding dues limits for ECLGS

The Apparel Export Promotion Council (AEPC) has urged the government to ease ECLGS norms. AEPC chairman A. Sakthivel has asked the Government to increase the limit of outstanding dues for eligible MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS) to Rs 100 crore. He said such a move would extend financial support to the export sector, which has been badly affected by the COVID-19 pandemic.

The full form of MSME is Micro, Small, and Medium Enterprises. MSME is key to our country’s economy. The provisions of MSME came to existence in accordance with Micro, Small and Medium Enterprises Development (MSMED), 2006. It is classified into two sectors:

  • Manufacturing Sector: Any company engaging in manufacturing or production of goods as specified under the First Schedule to the Industries (Development and Regulation) Act, 1951 or installing machinery in the process of value addition to the final product having a distinct name or character or use.
  • Service Sector: Any enterprise engaging in providing service.

Each enterprise has different investment limits.

Manufacturing Sector

Micro: Less than or equal to 25 lakh rupees (INR)

Small: More than 25 lakh, but less than or equal to 5 Crore (INR)

Medium: More than 5 Crore, but does not exceed 10 Crore Rupees (INR)

Service Sector

  • Micro: Less than or equal to 10 lakh rupees (INR)
  • Small: More than 10 lakh, but less than or equal to 2 Crore (INR)
  • Medium: More than 2 Crore, but does not exceed 5 Crore Rupees (INR)
  • If you are planning to start your own business and the register has an MSME, do read further to know more about the registration procedure.

Documents Required for MSME Registration

An enterprise has to submit the following documents for registration

  • Sale Bill Copy
  • Purchase Bill Copy
  • Partnership Deed / MoA and AoA
  • Address Proof of Business
  • Copies of Business Licenses and Purchase Bill of Machinery

Register your MSME for FREE

How to Register MSME registration?

Step 1:

Visit the Govt website

Step 2:

Enter the 12-digit Aadhaar Number and Name of the entrepreneur as given in the Aadhaar card.

If the entered name doesn’t match, the applicant cannot proceed further. After that click on the “Validate & Generate OTP” button.

The OTP will be sent to your UIDAI registered mobile number.

Or click on the “Reset” button to clear both the fields and re-enter the correct details.

Step 3:

After successful validation, you need to enter “Social Category” – (General, SC/ST, OBC) you belong to.

  1. Gender – Fill the gender status
  2. Status – The entrepreneur applicant has to select the physically handicapped status.
  3.  Name of the Business: The entrepreneur has to enter the name of the company. An entrepreneur can have more than one company. Each one of the entities has to be registered separately under the same Aadhaar Number.
  4. Type of organization: From the given list, the applicant has to select the organization type of his business.
  5.  PAN Number: The applicant has to enter PAN if his business falls under a specific category:
  • Cooperative
  • Private Limited Company
  • Public Limited Company
  • Limited liability Partnership (LLP)

This section is optional for other types of business entities.

  1. Location of Plant: He/she needs to enter the location details of all the plants.
  2. Business Postal Address: The applicant should fill the complete address of the business entity- District, State, Pin code, mobile number, and Email ID.
  3. Business Commencement: Date of Commencement of Business should be entered in the appropriate fields.
  4. Details of Previous Registration: Details of valid EM-I/EM-II as per the MSMED Act, 2006 should be furnished in the appropriate field.
  5. Bank Details: The applicant should provide banking details of the business account.
  • Account Number
  • Bank
  • IFSC Code
  1. Major Activity: Here the applicant needs to choose the major activity – Manufacturing or Service, his/her business is engaged from Udyog Aadhaar. Even the entity involved in both manufacturing and service, the applicant has to choose the major business activity type.
  2. National Industry Classification (NIC) Code: The list of NIC code are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program Implementation.

The applicant can choose multiple codes of the Manufacturing and Service sectors.

Register your MSME for FREE
  1. of Employee: The applicant has to mention the number of employee involvement and who are receiving payment/wages.
  2. Total Investment: The calculation of total investment involves the value of items purchased excluding R&D, Industrial Safety Device, pollution control and others.
  3. DIC – The full form of DIC is District Industries Centre. Based on the location of the business entity, the applicant has to fill the location of DIC.
  4. Submitting Application: The applicant must click on the “SUBMIT” button and OTP will be sent to the registered Email ID.

Enter the OTP and CAPTCHA code to complete the application process.

How to do Udyog Aadhaar Registration without Aadhaar?

If an applicant has not registered with Aadhaar, then he/she must apply for aadhaar enrolment.

For such applicants. UAM registration shall be filed by the DIC of the specific location based on the location of the enterprise or MSME-DI on behalf of the entity. But, he/she needs to submit the following documents –

  • Aadhaar Enrolment ID slip or a copy of Aadhaar enrolment request.
  • Any of the below-mentioned documents:
  • Bank Photo Passbook or
  • Voter ID or
  • Passport or
  • Driving License or
  • PAN Card or
  • Employee Photo ID issued by government

Benefits of Udyog Aadhaar Registration:

  • Easy loan approval at low-interest rates- subsidized rate.
  • Financial support to be  part of Foreign Expos
  • Government schemes
  • Hassle-free current bank account opening
  • For further assistance and registering your MSME, you can reach out to our experts.

Few of the MSME Schemes launched by Indian Government

  • Udyog Aadhar Memorandum – To register under this scheme, entities need to furnish an Aadhar Card. It can be done both online and offline. Moreover, by registering for MSMEs, it can avail finance for their business and government subsidies.
  • Zero Defect Zero Effect – MSMEs that are registered for this leverage concessions for their exported goods.
  • Quality Management Standards – Enterprises register under this and maintain quality standards by making use of new technology.
  • Incubation – Under this scheme, MSMEs can get up to 75% to 80% of the project costs (design, manpower, machinery and so on).
  • Women Entrepreneurship – Women entrepreneurs can get benefits with capital, training, counselling

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