MSME Registration

The Indian government offers MSME registration to Micro, Small, and Medium Enterprises (MSMEs) in order to assist them in receiving benefits that will help establish and grow their businesses. Obtaining the MSME registration is not obligatory; however, it can be advantageous as it provides a range of benefits related to setting up the business, taxation, credit facilities, loans, and more. The MSME registration process is entirely online and can be completed via the Udyam registration portal.

Business comes under MSME?

MSME, as per the Government of India, refers only to manufacturing and service industries, with trading companies being excluded from the scheme. The MSMED Act 2006 categorizes businesses under Manufacturing Enterprises or Service Enterprises based on their definition and categorization, as well as the registration policy relevant to Central government and State governments.

To qualify for the MSME scheme, industries have to meet the eligibility criteria for MSME issued by the Ministry of Micro, Small and Medium Enterprises. These eligibility criteria differ for Micro-Enterprise, Small-Enterprise, and Medium-Enterprise based on the investment in plant and machinery/equipment and turnover.

A : For Micro-Enterprise the investments in machinery/ equipment should not exceed Rs. 1 crore, and the turnover should be below Rs. 5 crores.

B : For Small- Enterprises, investment in machinery/equipment should not exceed Rs. 10 crores,

C : the turnover should not exceed Rs. 50 crores while Medium-Enterprises investment in machinery/equipment should not exceed Rs. 50 crores.

MSME Registration Eligibility

Individuals, startups, business owners, and entrepreneurs.

Private and public limited companies.

Sole proprietorship

Partnership firm

Limited Liability Partnerships (LLPs)

Self Help Groups (SHGs) AND Co-operative societies

Document Required

  • Aadhar number and PAN
  • Address of the business
  • Bank account number
  • The basic business activity
  • NIC 2 digit code
  • Investment details (Plant/equipment details)
  • Turnover details (as per new MSME definition)
  • Partnership deed
  • Sales and purchase bill copies
  • Copies of licenses and bills of purchased machinery