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How to Register Under MSME

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Introduction: MSME Registration

The other name of MSME is Micro, Small and Medium Enterprises. In India, MSME industries are the lifeblood of the economy

The contribution of MSME sector is 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and these industries manufacture more than 6000 types of products. When these industries grow, the economy of the country automatically grows as a whole and flourishes. These industries are also called small-scale industries or SSI’s.

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Registration Process

  • Registration process is done through both online and offline procedures.
  • Aadhaar Number is mandatory for registration.
  • File an online form using Udyog Aadhaar Registration.
  • For the verification process, one can use e-Aadhaar OTP.
  • Prior to commencement of business, provisional registration is issued by MSMEs
  • Provisional Registration is valid for 5 years or 60 months.
  • Provisional registration assists in obtaining bank loans and in applying for NOC from the regulatory authorities.
  • After the commencement of business, entrepreneurs can apply for Permanent License.
  • Permanent License comes with Lifetime Validity. It can also be canceled under special circumstances.

Benefits of MSME Registration

  • The bank loans become cheaper due to the MSME registration as the interest rate is very low around ~ 1 to 1.5% and is even lower than interest on regular loans.
  • There is various tax rebates offered to MSME.
  • It also allowed credit to be carried forward for minimum alternate tax (MAT) for a period of up to 15 years instead of 10 years
  • Many government tenders are only open to the MSME Industries.
  • As many rebates and concessions are available as MSME once registered the cost getting a patent done, or the cost of setting up the industry reduces
  • For government license and certification, business registered under MSME is given higher preference

Documents Required for MSME Registration

Documents required for MSME registration are as follows:-

  • Aadhaar number 
  • PAN number
  • Address of the business
  • Bank account number
  • The basic business activity 
  • NIC 2 digit code 
  • Investment details (Plant/equipment details)
  • Turnover details (as per new MSME definition)
  • Partnership deed
  • Sales and purchase bill copies 
  • Copies of licenses and bills of purchased machinery

Eligibility For MSME Registration

Following is eligibility for MSME Registration:-

MSME – Merged Criteria: Investment and Annual Turnover

Sector/Enterprise Type


Small Enterprise

Medium Enterprise

For both Manufacturing & Services Sector

Investment  is less than Rs. 1 crore

Turnover less than Rs. 5 crore

Investment less than Rs. 10 crore

Turnover up to Rs. 50 crore

Investment less than Rs. 50 crore

Turnover up to Rs. 250 crore


Fees for MSME Registration

There is no government fees required for MSME Registration. A fee charged by many portals is basically registration fees.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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