Micro Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: --
a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Registration of MSME
The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.
Earlier, as per MSME Act of 2006, all enterprises were expected to register with District Industries Centre (DIC) of their area and file Entrepreneurs Memorandum (EM) 1 for intention to start business if manufacturing or service and file EM 2 after starting production.
A large chunk of enterprises in India are simply not registered due to the cumbersome paperwork involved in the process and, therefore, can't tap the government schemes for them. The Ministry for Micro, Small and Medium Enterprises had in September 2015 notified Udyog Aadhaar to ensure ease of registration and wider coverage of MSMEs to avail the benefits under various Schemes of Central/ State governments.
From July 2020, Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
Overview of MSME registration
Government has organised a full system of Facilitation for Registration Process
An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration'
A permanent registration number will be given after registration.
After completion of the process of registration, a certificate will be issued online.
This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
There will be no need for renewal of Registration.
Registration Process is totally free. No Costs or Fees are to be paid to anyone.
Guidelines for registration of MSME
MSME Registration is free, paperless and based on self- declaration
No documents or proof are required to be uploaded for registering an MSME.
Only Adhaar Number will be enough for registration.
The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases. In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
Having PAN and GSTIN (As per applicablity of CGST Act 2017 and as notified by the ministry of MSME vide S.O. 1055(E) dated 05th March 2021) is required for Udyam Registration with effect from 01.04.2021.
Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
How to register
For New Enterprise who are not Registered yet as MSME
Aadhaar Number - 12 digit Aadhaar number issued to the applicant should be filled in the appropriate field.
Name of Entrepreneur - The applicant should fill his/her name strictly as mentioned on the Aadhaar Card issued by UIDAI. E.g. if Raj Pal Singh has his name as Raj P. Singh, the same should accordingly be entered if the name does not match with the Aadhar Number, the applicant will not be able to fill the form further.
Aadhaar Verification with OTP : The applicant must click on Validate Aadhaar button for verification of Aadhaar. OTP sent to the Aadhaar linked mobile number. On successful entry of OTP, Aadhaar vertification is completed.
PAN Verification - The Applicant must fill Type of Organization (select from the given list the appropriate type of the organisation for his/her enterprise) and the PAN. PAN is automatically verified by the system. If PAN already exists in Udyam Registration then Message will appear “Udyam Registration has already done through this PAN”.
Udyam Registration Detail
Contact Details - The Applicant should fill Mobile number, Email.
Social categorisation : SC/ST/OBC/General
Gender
Specially abled - Yes/No
Name of Enterprise
Location of Plant/Unit
Official address of enterprise
Previous registration number (UAM / EM II)
Status of enterprise : Date of Incorporation, Commencement
Bank Details- Bank name, IFS Code, Account Number
Major Activity- "Manufacturing" or "Service"
National Industry Classification Code (NIC Code)- The Applicant may choose multiple National Industrial Classification (NIC) Codes to includes all their activities. Which means user can select multiple NIC code of Manufacturing and Service sector by clicking "Add More" button.If you want to add Manufacturing then select "Manufacturing" radiobutton and keep on adding by clicking "Add More" button otherwise if you want to add Service then select "Services" radiobutton and keep on adding by clicking "Add More" button. The NIC codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program implementation, Government of India.
No. of Persons employed- The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field.
lnvestment in Plant & Machinery / Equipment
Turnover
DIC- The Applicant, based on the location of the Enterprise, has to fill in location of DIC. This Column will be active and show option only when there are more than one DIC in the district. In fact if there is only one DIC in the district system will automatically register you in the same DIC.
Submit and receive final OTP
After Successful Registration “Thank You” message will appear with Reference Number. This reference number will active for print after update of Income tax data and export data from GSTN (If Exporter).