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MSME Registration in India: Procedure, Documents & Benefits

Published on Nov 7, 2023Updated on Nov 8, 2023

MSME Registration in India: Procedure, Documents & Benefits

Whether you're a new entrepreneur or an existing business owner, an MSME registration online unlocks access to credit, tax benefits, and market opportunities. Through this article, we will understand the nuances of MSME registration, guiding you through the steps to formalize your business and take advantage of the resources available for your enterprise.

What is the Meaning of MSME Registration?

MSME registration is the official process of signing up a small or medium-sized business with the government. This registration qualifies the company for various government benefits like loans, tax breaks, and more, which help it grow and succeed.

These benefits include access to credit facilities, tax exemptions, subsidies, government contracts, and tenders eligibility. MSME registration helps businesses establish their status as part of the MSME sector, which is crucial for accessing these benefits and opportunities.

MSME Registration Process

To apply for MSME registration in India:

  • Visit the Udyam Registration portal and enter your Aadhaar number and name.
  • Fill out the registration form with the required information, including your business name, address, and activities.
  • Submit the form, after which you will receive a confirmation message and reference number. You will receive your Udyam Registration Certificate within a few days.
  • If you do not have a PAN Card, you can still apply for MSME registration by selecting "No" for a PAN Card when prompted. However, you will need to update your PAN Card and GSTN details later to avoid suspension of your registration.
  • If registered under EM-II or UAM, you can apply for MSME registration by choosing the appropriate option on the government portal's homepage. Enter your Udyog Aadhaar Number and click "Send OTP".
  • Please select your preferred choice to receive the OTP and enter it. Provide the details to complete the MSME registration procedure.

MSME registration is free of cost and does not require any documents to be uploaded.

Documents Required for MSME Registration

The paperwork for MSME registration includes the following:

  • Aadhaar card
  • Enterprise details, including company name, bank information, etc.
  • Address proof of the company.
  • Purchase/sales invoice of inventory.
  • Memorandum of Association, Partnership Deed, Articles of Association, etc., depending on the nature of your business (partnership or company).
  • Industrial license approved by the government.
  • Bills of equipment, machinery, etc

MSME Registration Eligibility in India

To qualify for MSME registration, you may have to consider the following criteria:

  • Entities: Proprietorships, partnership firms, companies, trusts, and societies can apply.
  • Annual turnover: This must be at most INR 250 crores.
  • Regulations: Depending on the nature of your business, it must comply with prescribed laws and possess associated documents like certificates and licenses.
  • Compliance with environmental regulations.
  • Investment and turnover: The enterprise must fall within any one of the following:

Type of Enterprise 

Investments (INR) 



Up to INR 1 crore 

Less than or equal to INR 5 crores  


Up to INR 10 crores 

Less than or equal to INR 50 crores  


Up to INR 50 crores 

Less than or equal to INR 250 crores  

Must Read: How to Apply for MSME Loan Online? (Step by Step Guide)

Steps of MSME Registration

For registering your MSME, you may fall into either of the two categories:

  • First-time applicants (new entrepreneurs)
  • Entrepreneurs who have previously enrolled through Udyog Aadhaar Memorandum (UAM) or Entrepreneurship Memorandum (EM)-II, whether by direct submission or with assistance.

New Entrepreneurs:

  • Visit the Udyam Registration portal and enter your Aadhaar details. 
  • Fill out the registration form with the relevant information.
  • Submit the form, following which you will receive a confirmation message and reference number.
  • Receive your Udyam Registration Certificate within a few days.

MSME Registration without a PAN Card:

  • Follow the steps above, but when prompted, select "No" for PAN Card.
  • Fill in all required details and submit the form to receive a registration number.
  • Update your PAN Card and GSTN details later to avoid suspension of your registration.

Entrepreneurs Already Registered under EM-II or UAM:

  • Choose the appropriate option on the government portal's homepage.
  • Enter your Udyog Aadhaar Number and click "Send OTP."s
  • Please choose your preferred mode to receive the OTP and enter it.
  • Provide the details to complete the MSME registration procedure.

How to Apply for MSME Registration

To start with, you can go to the website -  https://my.msme.gov.in/MyMsme/Reg/Home.aspx. You need to select the relevant category on the portal. To register as an MSME, you must provide your Aadhaar card as the main document.

You should upload PAN and GST details related to your investment and turnover. MSME registration is free of cost and does not require any documents to be uploaded. The government portal will retrieve other pertinent information from its database.

Benefits of MSME Registration

1. Credit Facilities

An MSME-registered business is more likely to receive loans and credit from lending institutions, boosting growth.

2. Lower Interest Rates

Lending institutions prefer to provide credit facilities at lower interest rates to registered MSMEs. This incentive makes borrowing more affordable, reducing the cost of capital for business expansion.

3. Tax Benefits 

Saving money on tax greatly benefits MSMEs as this allows them to save operational costs. The need to maintain extensive accounts and audits reduces as well.

4. Government Tenders

Registered MSMEs are eligible to participate in government tenders, thus unlocking new opportunities for growth and contracts.

5. Protection against Delayed Payments

MSME registration safeguards against delayed payments. This ensures a more predictable cash flow and stability for small businesses.

6. Ease of Getting Licenses, Approvals, and Registrations

Ease of Getting Licenses, Approvals, and Registrations - Streamlined processes and reduced paperwork make it easier for MSMEs to obtain licenses, approvals, and registrations.

7. Market Development Assistance

MSMEs can access government-sponsored programs for market development, such as trade fairs, artisan showcases, expos, and exchange initiatives, assisting them in expanding their customer base and reach.

8. Eligibility for CLCSS

Credit Linked Capital Subsidy Scheme (CLCSS) provides financial support for technology upgradation to registered MSMEs.

9. Collateral free loans

This initiative aims to stabilise the nation's emerging and established businesses economically. For their benefit, MSMEs can avail themselves of the Government of India's Credit Guarantee Trust Fund Scheme in collaboration with SIDBI and the Ministry of Micro, Small, and Medium Enterprises (M/o MSME).

Must Read: Benefits of MSME Loans

How to register an MSME without an Aadhaar Card?

Unfortunately, it is not possible to register an MSME without an Aadhar card. However, if the applicant doesn’t have an Aadhar card, there are a few alternatives that they may consider:

Apply for a new Aadhaar card if you don't have one: The Aadhar enrollment process is simple and can be done online or at an Aadhar enrollment center.

Register your MSME through a registered intermediary: This is an option if you cannot obtain an Aadhar Card. Registered intermediaries are organizations the government has authorized to help MSMEs with registration.

Register your MSME under a different category: If you are a sole proprietor, you may be able to register your business as a self-employed person. However, you may have to contact the local tax authorities for clarity. 

For more information, you can refer to the official website: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

Role of the Government in MSME Registration

The government has taken several steps to address the need for more accessible access to technology. It has simplified the MSME registration process by hosting the Udyam registration portal, the MSME Champions portal, and the MSME helpline.

The government significantly aids MSME registration through an easily accessible and cost-free online process. It conducts awareness campaigns and provides support through registered intermediaries.

Additionally, the government extends tax advantages, credit facilities, and market development aid to empower MSMEs, fostering their growth.

Must Read: Ways to Secure A MSME Loan Without Collateral


An MSME registration can benefit the growth and expansion of your business in the long run. Despite the challenges of the MSME sector, formalising your enterprise will expose it to a host of financial, social and intellectual benefits. Let SMFG India Credit be your partner in this journey.

Apply now for our tailored business loans and witness your enterprise flourish like never before.


What is an MSME Registration Certificate?

An MSME Registration Certificate is a government-issued document for Indian medium, micro, and small enterprises (MSMEs). This certificate is evidence of enterprise registration with the Indian government, making it eligible for various benefits and schemes.

Can I get MSME registration for a partnership firm?

All MSMEs qualify for MSME registration regardless of their business structure. Therefore, it is possible to obtain an MSME registration for a partnership firm as well.

How to check MSME registration by name?

To verify MSME registration, you can visit the Udyam Registration Portal. Enter the enterprise's name along with the PAN or GSTIN number. The portal will display the registration details if present.

Is it mandatory to have an Aadhar card for obtaining Udyam registration?

Yes. The Aadhar card is a compulsory requirement for obtaining a Udyam registration, as it acts as proof of identity. It also helps avoid multiple registrations.

What is the validity of the MSME Registration Certificate?

Once registered, an MSME certificate is in effect indefinitely till the owner/proprietor/appointed associate chooses to cancel it.

Who is eligible for MSME registration?

At present, manufacturing and service-based industries are eligible for MSME registration. Enterprises must adhere to the criteria set by the Ministry of Micro, Small and Medium Enterprises. Depending on the investments and turnover, these criteria may vary.

How much time does it take for MSME registration completion?

Applying for MSME registration is extremely simple, and the certificate is provided within 3-5 days of verification of the information provided.

How many days does it take for an MSME Registration Certificate?

The MSME registration certificate is issued within 3-5 days of successful registration.

Is the MSME registration online free?

Applying for an MSME registration is free of cost. Therefore, it is advisable to exercise caution if anyone demands any charges.

Are all Startups eligible for MSME Registration in India?

MSME registrations extend beyond traditional enterprises, including cooperative societies, trusts, startups, etc. Therefore, as young businesses, startups, too, qualify for registration.

Is MSME Renewal mandatory?

An MSME registration certificate is valid as long as the business is in function. However, you can update it anytime as required.

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