MSME Udyam Registration
The Udyam Registration Portal was launched by the Union MSME Ministry on 1st July 2020. This portal is aimed at simplifying and streamlining the process of registering Micro, Small, and Medium Enterprises (MSMEs). As of now, more than 11 lakh MSMEs have successfully completed their registration on a self-declaration basis.
This registration process was introduced as part of the Prime Minister’s relief package during the Covid-19 pandemic to support businesses and help them avail of various government schemes and benefits.
Difference between MSME Registration and Udyam Registration
The Ministry of MSME rebranded MSME registration as Udyam Aadhar Certificate, now with a 12-digit UAN. Udyam Registration simplifies the MSME process with easy self-declaration, requiring no documents like PAN or GST, unlike the previous MSME registration.
MSME Registration was launched in 2006 to support MSMEs by offering government schemes and benefits. It distinguishes service and manufacturing sectors and involves submitting more documents.
Udyam Registration, introduced in 2020, eliminates sector distinctions, has updated investment limits, and includes turnover criteria. It’s the new, simpler way to register MSMEs and access government schemes.
What is MSME Registration?
Launched on 2nd October 2006, MSME Registration promotes small and medium businesses. MSMEs are crucial to India’s growth, and registration provides access to various government schemes, financial aid, and support.
What is MSME?
As per MSMED Act, 2006, MSMEs are classified based on investment in plant/machinery:
Micro: Investment ≤ ₹1 Cr & turnover ≤ ₹5 Cr
Small: Investment ≤ ₹10 Cr & turnover ≤ ₹50 Cr
Medium: Investment ≤ ₹50 Cr & turnover ≤ ₹250 Cr
The 2020 amendment eliminates sector distinctions and introduces new limits for better inclusion.
Classification of Enterprises
The enterprise will be classified as a micro, small, or medium enterprise according to the following criteria:
- Micro Enterprises
- Small Enterprises
- Medium Enterprises
Classification of Enterprises
MSMEs are classified based on investment and annual turnover criteria, regardless of whether they are in the service or manufacturing sector. The classification limits are as follows:
Old Classification Limits:
| Sector | Micro | Small | Medium |
|---|---|---|---|
|
Manufacturing |
< ₹25 Lakhs
|
< ₹5 Lakhs
|
< ₹10 Crore
|
|
Service |
< ₹10 Lakhs |
< ₹2 Crore |
< ₹5 Crore |
However, under the Aatmanirbhar Bharat Abhiyan, the government revised these limits:
Revised Classification Limits:
| Criteria | Micro | Small | Medium |
|---|---|---|---|
|
Investment
|
< ₹1 Crore
|
< ₹10 Crore
|
< ₹50 Crore
|
|
Annual turnover |
< ₹5 Crore |
< ₹50 Crore |
< ₹250 Crore |
Micro Enterprise: Investment ≤ ₹1 Crore and turnover ≤ ₹5 Crore.
Small Enterprise: Investment ≤ ₹10 Crore and turnover ≤ ₹50 Crore.
Medium Enterprise: Investment ≤ ₹50 Crore and turnover ≤ ₹250 Crore.
Benefits of MSME/Udyam Registration
Enterprises registered under MSME/Udyam can avail the following benefits:
- Access to government tenders exclusive to MSMEs.
- Lower interest rates on bank loans.
- Tax rebates and exemptions.
- Reduced cost for patent registration.
- Preference in government licenses and certifications.
- Eligibility for various state and central government schemes.
Documents Required for MSME/Udyam Registration
To apply for MSME/Udyam Registration, the following documents are required:
- PAN & Aadhaar card of proprietor/directors/partners.
- Proof of ownership (Allotment Letter/Lease Agreement/Possession Letter/Property Tax Receipt).
- Rent Agreement & NOC from the landlord (if rented) along with a utility bill.
- Purchase bills for raw materials & sale bills for end products.
- Partnership Deed (for Partnership Firms).
- MOA, AOA, COI & Board Resolution (for Private Limited Companies).
- Industrial License (if applicable).
- Affidavit on ₹10 Non-Judicial Stamp Paper regarding power and machinery details.
- Purchase & installation bills for machinery.
- Bank account statement.
MSME/Udyam Registration Process
Follow these steps to register for MSME/Udyam:
- Visit the official Udyam Registration website: udyamregistration.gov.in.
- Select the appropriate category:
- New Entrepreneurs → Click on “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II.”
- Existing Registrations → Click on “For those already having registration as UAM through Assisted filing.”
For New Entrepreneurs:
- Enter Aadhaar number and name as per Aadhaar.
- Validate via OTP sent to the linked mobile number.
- Fill in the required details and submit after entering the captcha code.
For Existing Registrations:
- Enter UAM number and validate with OTP sent to the registered email or mobile.
- Complete the registration after verification.
How to Check Udyam Registration Status?
- Visit: Udyam Status Check.
- Enter the Udyam Registration Number and registered phone number.
- Select the OTP option.
- Click on “Validate and Generate OTP” to proceed.