MSME Registration: Eligibility, Process, Documents Required & Benefits

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Laxmi Navlani

MSME Registration
Start & Run Business
Startup-India

Micro, Small, and Medium Enterprises can apply for MSME registration in India. Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, Limited Company, Producer Company, any association of persons, co-operative societies or any other undertaking can obtain MSME registration.

Moreover, In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions.

  1. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
  2. Service enterprises – engaged in providing or rendering services

Further, the earlier definition of MSMEs was based on investments in plants and machinery or equipment. However, MSMEs will now be defined in a composite manner, taking both investments as well as turnover into account. Moreover, this new definition will bring about many benefits that will aid MSMEs to grow in size.

MSME Online Registration
Do you want to file an application for MSME Registration online? We can help you out.
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MSME Online Registration
Do you want to file an application for MSME Registration online? We can help you out.
[Rated 4.8 stars by customers like you]

Classifications of MSME

Definition of Micro, Small and Medium Enterprises has been altered with the aim of providing them greater support as well as various benefits as a part of the relief measures under Atmanirbhar Bharat Abhiyaan.

Earlier & Latest Classifications of MSME are mentioned in the tables below:

                                      Previous MSME Classification
              Criteria: Investment in Plant and Machinery/ Equipment
Classification Micro Small Medium
Manufacturing enterprises < Rs 25 lacs < Rs.5 crore < Rs.10 crore
Service enterprises < Rs.10 lacs < Rs.2 crore
< Rs.5 crore
                                         Revised MSME Classification
                               Criteria: Investment as well as Turnover
         For Manufacturing enterprises as well as Service enterprises
Classification Micro Small Medium
Investments < Rs.1 crore < Rs.10 crore < Rs.20 crore
Turnover < Rs.5 crore < Rs.50 crore
< Rs.100 crore

Note: Enterprise has to fulfill both of the above criteria to become eligible as an MSME as per the revised MSME classification.

MSME Online Registration Process

Time needed: 15 minutes.

  1. Enter Aadhaar number and Name

    File an online form using MSME registration website and enter Aadhaar Number and Name as per Aadhaarmsme registration step 1

  2. Verify using OTP

    Once you click on Verify and Generate OTP, you will receive OTP & you can use that e-Aadhaar OTP for verification

  3. Enter personal as well as other basic information required

    Once you verify your OTP , you will be able to fill the form for MSME registration. Provide Name of Entity, Type of organization, Address, etcmsme registration form-1

  4. Input other Feilds & Upload documents wherever required for the registration

    Input other Feilds & Upload documents wherever required for the registration i.e Classification of Enterprise, Total Investment, Bank account details, District Industry Center as well as some other common information. You can provide self-certified certificates.form msme 2

  5. Verify using OTP and enter captcha.

    Further, Use e-Aadhaar OTP for verification and then enter captcha.

  6. Submit Form

    Once the details are filled you can upload the form and then you would be getting the registration number.

Points to be noted:

  1. To do the registration the small and medium scale industry owner can file form in both manners i.e whether online or offline.
  2. Secondly, there are no registration fees required to be paid for this process.

MSME Registration without Aadhaar card:

In case the applicant doesn’t have Aadhaar card then he/she must visit the nearest Aadhaar enrollment center for enrollment. Till the time Aadhaar is issued to the individual the below documents can be used to continue the registration process:

Further, Copy of Aadhaar enrollment slip or copy of Aadhaar slip for Aadhaar enrollment can be used.

For Aadhaar enrollment process below documents are required:

Then, after completing the above process you can continue your business with MSME/SSI certificate.

Documents Required For MSME Registration

Benefits of MSME Registration

The Finance Minister listed various benefits for MSMEs which included easier credit and equity infusion as well as various other benefits like redefining these units under Atmanirbhar Bharat Scheme. Those benefits are explained in detail below:

New Benefits under “Atmanirbhar Bharat Scheme”

There are various other benefits of MSME Registration and some of them are listed below:

Activities specifically excluded from coverage under MSME

Ministry of Micro, Small, and Medium Enterprises (MSME) has clarified via notifications that the following activities would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act.

  1. Forest and Logging
  2. Fishing and aquaculture
  3. Wholesale, retail trade as well as repair of motor vehicle and motorcycles
  4. Wholesale trade except for motor vehicles as well as motorcycles.
  5. Retail Trade Except for Motor Vehicles as well as motorcycles
  6. Activities of households as employees for domestic personnel
  7. Undifferentiated goods as well as services-producing activities of private households for own
  8. Activities of extraterritorial organizations and bodies

FAQs

What is the validity of the MSME registration certificate?

There is no expiry of the MSME registration certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.

Can trading companies register under MSME?

No. MSME covers only manufacturing and service industries.

Moreover, the purpose of MSME is to support startups with subsidies and benefits, However, trading companies are like middlemen i.e a link between manufacturer and customer. Hence not covered under the scheme.

Do I need multiple registrations for manufacturing plants in different cities?

No. The MSME registration certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.

  • Sumit Kabra says:

    Sir regarding your article on “Activities specifically excluded from coverage under MSME” above do you specifically sight the notification no. whereby those activities have been expressly excluded for MSME

    • Laxmi Navlani says:

      Ministry of Micro Small or Medium Enterprises notified vide notification number F.No. UAM/MC/01/2017-SME dated 27.06.2017 for registration of Udyog Aadhaar Memorandum clarified that the activities mentioned in Table 1 & Table 2 would not be included in the manufacture or production of goods or providing or rendering of services.
      You can click on the link below to read the notification issued
      Notification number F.No. UAM/MC/01/2017-SME

  • Sumit Kabra says:

    Dear Laxmi
    Thanks for your prompt response and sharing the notification.
    Best Regards
    Sumit Kabra

  • Parveen jain says:

    The website i am not able to register more than 5 crore

  • Sampath Arumugam says:

    Hi Madam,

    we have a P&M 47 Cr, i trying to register as medium size industry, but unable to register. It showing p&M does not exceed 10 Cr.

    Please advice..

    • Laxmi Navlani says:

      Under the new definition, Enterprises with investment up to Rs 20 crore and turnover up to Rs 100 crore will be termed medium enterprises. As your investment exceeds 20 crores you are not eligible for this registration

  • Saurabh says:

    If a company got the finished products ready on job work basis after supplying raw material to job worker, whether it can register under msme or not ?

    • Laxmi Navlani says:

      Yes, Company can register as MSME as this business is not covered in the specific exclusions listed in the article.

  • Akash Malhotra says:

    Can a Farmer Producer Organization (registered as a cooperative/producer company/society/trust or a section 8 company), mainly engaged in horticulture, be classified as MSME if it fulfills the investment and turnover criteria?

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