Step-by-Step Process for MSME Registration in India

Introduction

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India’s economic growth. The government has introduced MSME registration (also called Udyam registration) to provide businesses with various benefits, including subsidies, tax exemptions, and easier loan access.

If you’re an entrepreneur looking to register your MSME, this guide will take you through the entire process in a simple, easy-to-follow manner.

What is MSME Registration?

MSME registration, also known as Udyam registration, is a government certification for businesses classified as Micro, Small, or Medium Enterprises. It helps businesses access financial and legal benefits, including lower interest rates, government schemes, and priority sector lending.

While MSME registration is not mandatory, it is highly beneficial for businesses seeking government support.

MSME Classification Based on Investment & Turnover (Updated 2025)

The government classifies MSMEs based on investment in plant & machinery/equipment and annual turnover:

Enterprise Type	Investment Limit	Annual Turnover Limit
Micro Enterprise	Up to ₹2.5 crore	Up to ₹10 crore
Small Enterprise	Up to ₹25 crore	Up to ₹100 crore
Medium Enterprise	Up to ₹125 crore	Up to ₹500 crore

If your business falls within these limits, you can apply for MSME registration in India.

Documents Required for MSME Registration

The MSME registration process is simple and requires minimal documentation. Here’s what you need:

• Aadhaar Card of the business owner
• PAN Card of the business
• GSTIN (if applicable)
• Bank account details (linked to the business)
• Business address proof (utility bill or rent agreement)

The process is paperless, as the Udyam portal fetches investment and turnover details from government databases.

Step-by-Step Process for MSME Registration in India

The entire MSME registration process is online and free of cost. Follow these steps to register your business:

Step 1: Visit the Udyam Registration Portal

Go to the official government website: udyamregistration.gov.in.

Step 2: Choose the Registration Type

On the homepage, select one of the two options:

1. For new entrepreneurs who are registering their business for the first time.
2. For those already having UAM (Udyog Aadhaar Memorandum) and upgrading to Udyam.

Step 3: Enter Aadhaar Details

• Enter the Aadhaar number of the business owner.
• Provide the entrepreneur’s name as per Aadhaar and validate it with OTP.

Step 4: Enter PAN Details

• Enter your PAN number and validate it.
• The portal will fetch your business details from the Income Tax database.

Step 5: Fill in Business Details

• Type of organization (Sole Proprietorship, Partnership, LLP, Pvt Ltd, etc.)
• Name and address of the business
• Bank account details
• Major business activities (Manufacturing/Service)
• Total number of employees
• NIC (National Industrial Classification) Code

Step 6: Provide Investment & Turnover Details

• Enter your investment in plant & machinery/equipment
• Provide your annual turnover
• The system will verify the details using GST and Income Tax databases.

Step 7: Submit the Application

• Accept the declaration.
• Click Submit & Generate OTP.
• Enter the OTP received on your mobile/email.

Step 8: Get MSME Registration Certificate

After successful submission, you will receive the MSME Udyam Registration Certificate on your email. You can also download it from the Udyam portal anytime.

How to Check MSME Registration Status?

If you have already applied, follow these steps to check your registration status:

1. Visit the Udyam Registration Portal.
2. Click on ‘Verify Udyam Registration’.
3. Enter your Reference Number and Captcha Code.
4. Click Verify to check your status.

How to Download MSME Registration Certificate?

To download your certificate:

1. Visit the Udyam Registration Portal.
2. Click on ‘Print Udyam Certificate’.
3. Enter your Udyam Registration Number and registered mobile/email.
4. Validate OTP and download your certificate.

MSME Registration Fees

The government does not charge any fee for MSME registration. Beware of third-party service providers claiming to charge for registration.

Benefits of MSME Registration

1. Easier Access to Loans

MSMEs can avail of collateral-free loans at lower interest rates (1%-1.5% lower than standard rates).

2. Government Subsidies & Tax Benefits

• Subsidy on patent registration & industrial promotion
• Exemption from direct tax schemes
• Reimbursement of ISO certification fees

3. Priority in Government Tenders

Registered MSMEs get preference in government procurement and are exempted from earnest money deposits in tenders.

4. Protection Against Delayed Payments

Under the MSME Development Act, MSMEs can:

• Charge compound interest on late payments.
• File complaints with the MSME Samadhaan portal for quick dispute resolution.

5. Electricity & Credit Guarantee Benefits

• MSMEs get electricity bill concessions.
• Access to the Credit Guarantee Fund Scheme for easier financing.

FAQs on MSME Registration

1. Is MSME Registration Mandatory?

No, MSME registration is optional, but it helps businesses get government benefits.

2. How Long Does MSME Registration Take?

The entire process is instant if all details are correctly provided. The certificate is issued immediately.

3. Can I Register Multiple Businesses Under One MSME Registration?

No, each business must be registered separately.

4. Do I Need a GST Number for MSME Registration?

If your business is liable for GST, then a GST number is required for registration.

5. Does MSME Registration Expire?

No, MSME registration is permanent and does not need renewal.

Conclusion

Getting MSME registration in India is a simple and hassle-free process. It provides businesses with numerous financial and legal benefits that can accelerate growth. If you haven’t registered your business yet, follow the steps above and unlock the benefits of MSME registration today.

Would you like expert help with MSME registration? Contact us at QuickComply for assistance.