MSME Registration

What is MSME Registration?

Any company that comes under the category of MSME needs to ensure that they are registered under the MSME category. MSME registration stands for the micro small and medium enterprises registration. MSMED Act has been launched by the government of India to support the MSME through various schemes, subsidies, and incentives. With MSME Registration, banks also provide the loans at lower rate of interests, as these MSME play an important role in the country’s economic growth. With MSME registration you also get benefit for Trademark registration.

MSME registration is also known as Udyog Aadhaar.


Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under MSME Act. It will save you from a lot of inconveniences later on.
MSME registration is totally voluntary. However, it is advisable to take registration under MSME.
MSME’s are recognised by all the institutions and banks. They have special schemes drafted to recognise them as well and usually for providing loans banks prefer MSMEs rather than normal enterprises.
The following documents are required for MSME registration:

Pvt. Ltd. Co./ Public Ltd. Co./OPC:
     • Company PAN Card
     • MOA, AOA & Incorporation Certificate
     • Company Address Proof
LLP & Partnership Firm:
     • Firm PAN Card
     • LLP Agreement/ Partnership Deed
     • Firm Address Proof
Proprietorship Firm:
     • PAN Card of proprietor
     • Shop Act
     • Address Proof of Firm
All the three are the same and there is no difference amongst the three.
Classification Micro Small Medium

Manufacturing & Services
Investment less than 1 Cr
Turnover less than 5 Cr
Investment less than 10 Cr
Turnover less than 50 Cr
Investment less than 20 Cr
Turnover less than 100 Cr
a. Registration can be done online.
b. Visit the website
c. Fill up the mandatory details.
d. No registration fees.
e. Once the formalities are completed you get the registration certificate then and there.
a. Major Benefits:
     i. 100% Collateral Free Loans from all banks
     ii. Reduction in interest rate from banks
     iii. Special consideration on international trade fairs
     iv. Bar Code Registration subsidy
     v. Concession in electricity bills.
     vi. 50% subsidy for patent registration.

b. Benefits from State Governments
     i. There is a sales tax exemption in most states and purchase preference on goods produced.

c. Support services by State Government:
     i. Extended credit facilities
     ii. Industrial extension support and services
     iii. Availability of developed sites for warehouse construction
     iv. Provision of training facilities
     v. Hire-purchase of machineries for use in MSME
     vi. Assistance in marketing, both within the country and outside (exports)
     vii. Assistance for construction of industries in underdeveloped areas
     viii. Reducing the one-time guarantee fee for all loans availed in North Eastern India from 1.5% to 0.75%.

d. Benefits from Central Government:
     i. The central government, from time to time, announces schemes to benefit MSMEs, such as the credit guarantee scheme.

e. Support services by Central Government:
     i. Enhancing the optimal eligibility loan from Rs. 25 lakh to Rs. 50 lakh.
     ii. Reducing the one-time guarantee for loans availed of by the MSME in North-Eastern region of India from 1.5% to 0.75%.
     iii. Increasing the extent of guarantee cover from 75% to 80% for:
              Women operated Medium and small scale enterprises
              Micro enterprises, for loans upto 5 lakhs
              Loans obtained in North Eastern region of the country
              Reducing the one-time guarantee fee for all loans availed in North Eastern India from 1.5% to 0.75%.
Yes, both new and existing business can apply for MSME registration.
Any type of business entity can obtain MSME Registration/ Udyog Aadhaar, be it Hindu Undivided Family, Proprietorship, One-Person Company, Partnership Firm, Private Limited Company, Public Limited Company, Limited Liability Partnership, Association of Persons (AOP), or any other business entity.