MSME Registration helps to acquire government tenders easily for a business. So, if you are looking for how to apply for MSME Registration Online, I will tell you all you should know.
Firstly, for MSME Registration, you should go for company registration online. As a result, you cannot get many benefits in terms of taxes and credit facilities.
MSME is a definition set by the government.
There are mainly two types of industries under MSME.
- Service sector
- Manufacturing sector.
Here is the Revised Classification applicable w.e.f 1st July 2020 for Micro, Small, and Medium Enterprises.
Micro – Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover should not be more than Rs. 5 crores.
Small – Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover should not be more than Rs. 50 crore.
Medium – Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover should not be more than Rs. 250 crores.
Service Sector under MSME
The service sector serves the customers directly with their services.
Meaning, that when any organization, company, person, or factory does any work for an individual or a group, it is called service.
Therefore, under MSME, we keep those service industries whose annual turnover is up to Rs 100 crore. Also, it is the limit of the medium enterprise as per the new rule of MSME implemented by the government in June 2020.
Manufacturing Industry under MSME.
As the name suggests, it refers to the creation of something. This industry is indeed related to sector construction only.
It constructs everything from needles to airplanes. But under MSME, those same industries are called manufacturing industries.
Manufacturing enterprises whose annual turnover is up to Rs 100 crore, according to the new definition of MSME implemented by the government, the limit of the medium industry as per June 2020).
Steps to apply for MSME registration online
Businesses that want to take advantage of the benefits announced by the government for MSMEs will have to register their business on the Udyog Aadhaar Memorandum (UAM) Portal.
The enrollment procedure is easy and free of cost for every candidate.
Follow the given process for online registration:
Time needed: 15 minutes
- Firstly, go to the UAM gateway, where you have to fill out a form
- Secondly, enter the details of the candidate who are registering their business as MSME
- After that, tap on the primary link on the page or click here to open the form
- Now fill in the Aadhaar number and applicant name, and tap on Validate & Generate OTP
- Once the verification is complete, you need to enter the PAN details. If you do not have a PAN card yet, you can select the No option
- Next, you need to fill in the form with field numbers 5-24
- At the end of the form, you will again receive an OTP to your phone
- Fill one-time password and confirmation code to apply successfully
- After successful registration, a “Thank you” message will appear with the registration number. Keep that number with you
Once the application form is submitted, approval and registration might take 2-3 days to finish. If the request is accepted, registration will be complete and, the MSME authorization will transfer to you through the mail.
Know how to download the MSME Certificate
What are the mandatory documents to apply for MSME registration online?
- Aadhar number
- PAN number
- Business address
- Bank account number
- Investment Details (Plant/Equipment Details)
- Turnover details (as per new MSME definition)
- Partnership deed Sales and Purchase Bill
- Copies of the license and bill of machinery purchased
Here are some benefits of MSME registration:
- Lowest interest rates on bank loan
- Avail customized tax exemption
- Priority in buying government tenders
- Interest rate reduction from banks
- Free cost government tenders
- Stamp Duty and Octopi Benefits
- Concession in electricity bill
- Reservation Policies for Manufacturing/Production Sector Enterprises
- Reimbursement of ISO Certification Expenses
- Excise Duty Exemption Scheme
To sum up, the economic development of any country depends not only on its large industries and multinational organizations but also on medium-scale industries, small-scale industries, and cottage industries instead.
Small and medium enterprises act like oxygen for a developing country like India.
Latest News on MSME
02.12.2024: The Ministry of Micro, Small and Medium Enterprises (MSME) in India has outlined a series of initiatives to strengthen and develop the MSME sector, which plays a critical role in the nation’s economy. The initiatives include schemes like the Prime Minister’s Employment Generation Programme, Credit Guarantee Scheme, and the Entrepreneurship Skill Development Programme, among others. These programs aim to enhance credit access, foster skill development, and promote marketing and procurement support for MSMEs. Specifically, the Credit Guarantee Scheme facilitates loans up to ₹500 lakh for Micro and Small Enterprises (MSEs) without the need for collateral or third-party guarantees, thus easing credit accessibility and promoting growth.
The Union Budget 2024-25 introduced additional support measures for MSMEs, focusing on financing, regulatory reforms, and technology integration to bolster global competitiveness. These measures include enhancements in Mudra Loan limits, mandatory onboarding in TReDS for better transaction visibility, and the establishment of e-commerce export hubs. Furthermore, the Ministry’s emphasis on capacity building, particularly for first-time exporters, includes financial reimbursements for export-related certifications and quality testing. Such initiatives are expected to empower MSMEs to scale their operations, enhance market access, and increase their contributions to exports and employment.
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