MSME Registration
Why register in MSME
The Ministry of MSME Government of India, in the notification S.O.2119(E) dated 26.06.2020, with effect from 1st July 2020, introduced the Udyam Registration in lieu of UAM.
The Udyam Registration is based on the composite criteria of investment and turnover for classification of Micro, Small and Medium Enterprise for new enterprises as well as existing enterprises.
- Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
- On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identity number to be known as “‘Udyam Registration Number”.
- An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.
Benefits of
MSME Registration
Access to Credit at Lower Interest Rates
Easier access to business loans with lower interest rates nationwide
Eligibility for Govt Subsidies & Schemes
Eligibility for government subsidies, incentives, and MSME support schemes nationwide
Protection Against Delayed Payments
Legal protection against delayed customer payments and faster recoveries mechanisms
Income Tax Exemptions
Income tax benefits and exemptions reducing overall business tax burden
Quicker Resolution of Disputes
Faster, simplified dispute resolution through dedicated MSME authorities and councils
Lower Cost of Obtaining Patents & trademark
Reduced cost for patent and trademark registration through subsidies benefits
Importance of MSME Registration
Access to Financial Assistance
Protection of Interests
Government Tenders and Contracts
Eligibility Criteria for MSME Registration or Udyam Registration
Micro Enterprises
Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore
Small Enterprise
Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore
Medium Enterprise
Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore
F.A.Q.
MSME Registration
MSME (Micro, Small, and Medium Enterprises) Registration, now referred to as Udyam Registration, is a government initiative to recognize and provide various benefits to businesses operating in the MSME sector. Udyam Registration helps businesses to avail financial aid, subsidies, tax benefits, and other government schemes.
Any micro, small, or medium enterprise involved in manufacturing, processing, or service-related activities can apply for Udyam Registration. The eligibility depends on the annual turnover and investment in plant & machinery or equipment.
- Easy access to government schemes and subsidies.
- Preference in government tenders and contracts.
- Access to low-interest loans.
- Protection against delayed payments from buyers.
- Tax exemptions and easier filing for taxes.
- Eligibility for incentives from the government for innovation and business growth.
You can apply for Udyam Registration through the official MSME Registration portal or by availing of professional services like GST CARE CENTER , where we assist you in the entire process, ensuring a smooth and hassle-free registration.
- Aadhaar number (for individual entrepreneurs).
- PAN card (for companies or firms).
- Business address proof.
- Bank details (account number and IFSC code).
- Details of the business activity.
- Investment and turnover details.
While Udyam Registration is not mandatory for all MSMEs, it is highly recommended as it provides access to a wide range of government benefits, schemes, and financial assistance.
Udyog Aadhaar was a previous form of MSME registration, while Udyam Registration is the new, updated process. Udyam Registration requires self-declaration, PAN, and GSTIN (for businesses above a certain threshold), and it allows businesses to avail of more comprehensive benefits.
The Udyam Registration process is simple and typically takes 1 to 3 hrs, depending on the business type and the documents provided. SetupFiling.in offers a streamlined process to ensure that you get registered quickly and easily.
Yes, you can update your details (such as business activity, turnover, etc.) anytime through the Udyam Registration portal or through services like Gst Care Center.
Udyam Registration is valid for a lifetime, as long as the business continues to meet the criteria for MSME status. However, you must update your registration if there are significant changes, such as changes in turnover or investment.
Udyam Registration is free of charge if done through the official portal. However, professional services such as those offered by Gst Care Center may involve a nominal fee for assistance in filing the registration and ensuring accurate submission.
GST registration is only required for MSMEs that have a turnover exceeding ₹40 lakhs for manufacturing businesses and ₹20 lakhs for service providers. For smaller businesses, GST is not mandatory.
You can update your business details through the Udyam Registration portal to reflect any changes in ownership or business activities.