We frequently hear that the government has made an announcement regarding MSMEs. For MSME, today the central government made that decision. The MSME trader’s difficulty was solved. MSMEs provide a major contribution to the country’s economy.
MSMEs are major contributors to India’s GDP, as we see and hear on television, radio, and in newspapers. But do you know who MSME stands for?
In this article we will answer all the common question on
how to register in msme
how to register msme online
how to register udyog aadhar
how to register udyam registration
how to apply for msme registration
What is MSME
Well many people are confused about the MSME registration, Udyog Aadhaar registration, and Udyam Registration.
Do not worry we are here to answer all your queries.
First understand things one by one.
What Is MSME?
What are the Types of MSME?
What Is The Difference Between MSME Registration Vs Udyog Aadhaar Registration Vs Udyam Registration?
Is MSME Registration, Udyog Aadhaar Registration and Udyam Registration the same?
What Is The Old MSME Definition?
What Is The New MSME Definition?
What Are The Documents Required For MSME Registration?
How To Register in MSME Online?
What Are The Benefits Of MSME Registration?
What are schemes launched by the Government for MSMEs?
What Is MSME?
First of all, MSME Full Form – If you understand then it will be easy for you to know further. The full form of MSME is Micro, Small and Medium Enterprises –M for Micro, S for Small, M for Medium, and E for Enterprise.
MSME is called micro, small and medium enterprises. If you want to understand it in a more easy language, then we call MSME small and medium industries / business in very easy language.
MSME industry is a local industry. This type of industry can be easily operated even in less space with less people.
What are the Types of MSME?
There are mainly two types of MSME industry.
Manufacturing Industry
Service Industry (Service Sector)
Let us tell you the types of MSMEs
Manufacturing Industry – In the manufacturing industry, the work of making new things is done.
Service Enterprise – Service sector is mainly engaged in providing service. It is also known as the service sector. In this sector, the work of providing service to the people and various organizations is done.
What Is The Difference Between MSME Registration Vs Udyog Aadhaar Registration Vs Udyam Registration?
MSME Registration –
It is a registration process for enterprises (Micro, Small and Medium Enterprise) to register under the ministry of MSME portal.
On October 2, 2006, the MSME began operating. It was created to help micro, small, and medium-sized businesses become more competitive by promoting, facilitating, and developing their competitiveness.
Udyog Aadhaar Registration –
It is a registration process for enterprises (Micro, Small and Medium Enterprise) to register under the ministry of MSME i.e. Udyog Aadhaar portal.
In September, 2015, the Udyog Aadhaar portal began operating. The Ministry of Micro, Small and Medium Enterprises notified Udyog Aadhaar to facilitate simplicity of registration and broader coverage of MSMEs to benefit from different Central/State government schemes.
Udyam Registration –
It is a registration process for enterprises (Micro, Small and Medium Enterprise) to register under the ministry of MSME i.e. Udyam Registration portal
According to the MSME Ministry’s data, as of June 2, 2021, the government’s MSME registration site Udyam Registration.
Is MSME Registration, Udyog Aadhaar Registration and Udyam Registration the same?
Yes, MSME Registration, Udyog Aadhaar Registration and Udyam Registration are all the same.
What Is The Old MSME Definition?
This is the old MSME definition. MSMED Act of 2006, old MSME definition based on investment only. Manufacturing and service sectors were different as per the investment.
| Manufacturing Sector | |
| Enterprises | Investment in plant and machinery |
| Micro enterprises | < or = Rs 25 lakh |
| Small enterprises | > Rs 25 lakh < Rs 5 crore |
| Medium enterprises | > Rs 5 crore < Rs 10 crore |
| Services Sector | |
| Enterprises | Investment in equipment |
| Micro enterprises | < or = Rs 10 lakh |
| Small enterprises | > Rs 10 lakh < Rs 2 crore |
| Medium enterprises | > Rs 2 crore < Rs 5 crore |
What Is The New MSME Definition?
The Union Cabinet, led by Prime Minister Narendra Modi, officially amended the MSME definition on Monday, June 1st. The Atmanirbhar Bharat Abhiyaan relief package’s recent modifications in the definition of micro, small, and medium-sized companies were accepted.
An amendment was to be submitted to implement the new definition, which would enhance the business environment for Indian firms. The Union Cabinet adopted an amendment to change the criterion for categorising MSMEs from “investment in plant and machinery” to “annual turnover.”
This is the updated and the new MSME definition. The investment and turnover numbers were increased, resulting in an increase in the number of medium-sized businesses. Manufacturing and service sectors are combined together as per the investment and turnover.
| Updated MSME Definition | ||
| Type of enterprise | Investment | Turnover |
| Micro | Rs 1 crore | Rs 5 crore |
| Small | Rs 10 crore | Rs 50 crore |
| Medium | Rs 50 crore | Rs 250 crore |
What Are The Documents Required For MSME Registration?
The document required for MSME registration are as follows:
PAN number
Aadhar number
Company name & address
Bank Account Number
2 digit NIC code
Information of the investment (plant/equipment details)
Details about the turnover (as per new MSME definition)
How To Register in MSME Online?
The registration in MSME is very simple and easy, just follow these 5 step
Step 1: Go to the New MSME Registration portal.
Step 2: Fill out all the details.
Step 3: Pay for your application process
Step 4: Once your Udyam registration application is accepted, your business will be registered and the udyam certificate will be given to you
Step 5: A valid certificate will be issued within 1-2 hours via registered email.
Note: For the Udyam registration procedure to continue, you will need to share the OTP with one of our managers.
What Are The Benefits Of MSME Registration?
There are many MSME benefits for businesses in India. Additionally, registered firms with an MSME certificate will get benefits from a number of government schemes.
- Bank loans with the lowest interest rates
- Take advantage of tax credits tailored to MSMEs under the Minimum Alternate Tax Credit (MAT)
- MSMEs have very easy access to finance.
- ISO Certification Reimbursement
- Take advantage of exceptional discounts and reductions on patents and business start-ups.
- Government preference to MSMEs is based on a one-time settlement fee for outstanding amounts.
- Electricity bill reductions
- Government credit guarantee programmes are available.
- Special attention is paid to international trade fairs.
- Subsidy for barcode registration
- State government’s assistance
What are the schemes of the Indian Government for MSMEs?
Some of the scheme for MSME are as follows:
- Udyam Scheme : MSMEs may rapidly get accessible loans, financing, and government incentives through the Udyam memorandum scheme.
- Women’s entrepreneurship : This programme was created to support and encourage women who wished to establish their own business or develop something. Women in this country receive financial assistance, counselling, and training from the government to help them better run their businesses.
- Zero defect zero effect : The government guarantees that items produced by MSMEs meet a particular quality and are not returned to India under this programme. The initiative, also known as the ZED, assists MSMEs in receiving refunds and incentives for their exported goods.
- Standards for quality management and quality technology : This programme aims to increase MSMEs’ awareness of the importance of quality in their goods. It promotes healthy competition among businesses in order to assure improved product quality.
- Grievance monitoring system : This programme was created to track and respond to company and MSME owners’ complaints and suggestions.
- Credit linked capital subsidy scheme : Registered MSMEs can get money to replace obsolete machinery and improve their firm with new technology through a credit-linked capital subsidy scheme. MSMEs can approach banks directly to take advantage of this scheme.
I’m sure you’ve figured out how to register in MSME, their benefits and the differences. If you have any further questions about MSME Udyam Registration, please contact us using the contact form below.
