What is MSME Registration


MSME registration is the process of registering a micro, small or medium enterprise (MSME) in India. MSME registration is voluntary and is aim at promoting and supporting the growth of small businesses in the country. Here are some key aspects of MSME registration that you should know:

  1. Eligibility: The eligibility criteria for MSME registration is based on the investment and turnover of the enterprise. The classification of an enterprise as micro, small or medium is base on the following criteria:
  • Micro enterprise: Investment up to Rs. 1 crore and turnover up to Rs. 5 crore
  • Small enterprise: Investment up to Rs. 10 crore and turnover up to Rs. 50 crore
  • Medium enterprise: Investment up to Rs. 50 crore and turnover up to Rs. 250 crore
  1. Benefits: MSME registration offers several benefits to small businesses, such as easy access to credit, protection against delay payments, lower interest rates on loans, and preferential treatment in government procurement.
  2. Udyam Registration: In 2020, the Government of India replace the earlier MSME registration process with the Udyam Registration process. Udyam registration is an online process and involves the issuance of a unique identification number (Udyam Registration Number or URN) to the MSME. Udyam registration is base on self-declaration, and no documents are require for the registration process.
  3. Documents Require: While no documents are require for Udyam registration, MSMEs may be require to submit certain documents for availing of government schemes and benefits. These documents may include PAN card, Aadhaar card, business registration certificate, and bank account details.
  4. Registration Process: MSMEs can register for Udyam registration on the official Udyam registration portal udyamregistration.co. The registration process involves filling up an online application form with basic details about the business and its owner. Once the application is submit, the URN is issued to the MSME.

In summary, MSME registration or Udyam registration is a voluntary process aim at supporting the growth and development of small businesses in India. By registering under MSME or Udyam, businesses can access various benefits and schemes that can help them thrive in a competitive business environment.


The online Udyam registration process is a simple and easy process that can be complete in a few steps. Here is a step-by-step procedure for doing online Udyam registration:

  1. Visit the Udyam registration portal: Go to the official Udyam registration portal at udyamregistration.co
  2. Enter Aadhaar Number: On the home page of the portal, select the option “For New Entrepreneurs who are not registered yet as MSME” and enter your 12-digit Aadhaar number. Click on the “Validate & Generate OTP” button.
  3. Enter the OTP: Click the “Validate OTP” option after entering the OTP that was sent to your Aadhaar-register cellphone number.
  4. Fill the online registration form: After OTP validation, the online registration form will appear on the screen. Fill in the require details such as name of the enterprise, PAN, location, bank account details, and other relevant information.
  5. Fill out the form completely before clicking the “Submit” button.
  6. Verification of the form: The Udyam registration authority will verify the details provide in the form and issue a unique Udyam Registration Number (URN).
  7. Acknowledgment: Once the URN is issued, an acknowledgement containing the URN will be sent to the register email address and mobile number.

Note: No fees are charge for Udyam registration.

In summary, Udyam registration is a simple online process that can be completed in a few steps by providing basic details about the business and its owner. By completing the registration process, MSMEs can access various benefits and schemes offered by the Government of India.


The Government of India has launch various packages and schemes to support MSMEs in India, and Udyam registration is one of the prerequisites to avail these benefits. Here are some of the government packages for Udyam registere enterprises:

  1. Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS): Under this scheme, the government provides collateral-free credit to eligible MSMEs. The credit is provide by banks and financial institutions, and the government guarantees up to 75% of the credit amount.
  2. Prime Minister’s Employment Generation Programme (PMEGP): Through financial support for new and small firms, this programme strives to provide employment possibilities in both urban and rural areas.
  3. Technology Upgradation Fund Scheme (TUFS): This scheme aims to facilitate technology upgradation and modernization of MSMEs by providing a capital subsidy of up to 15% of the investment in eligible machinery.
  4. The National Manufacturing Competitiveness Programme (NMCP) supports numerous initiatives like lean manufacturing, energy efficiency, marketing, and quality certification in order to increase the competitiveness of MSMEs.
  1. Micro and Small Enterprises Cluster Development Programme (MSE-CDP): This scheme aims to enhance the competitiveness of MSMEs by facilitating the development of clusters of industries. The scheme provides financial assistance for the development of common facilities and infrastructure in the cluster.
  1. Zero Defect Zero Effect (ZED) Scheme: This scheme aims to promote quality manufacturing by MSMEs and reduce their environmental impact. The scheme provides financial assistance for the implementation of quality standards and environmental management systems.

In summary, Udyam registration provides access to various government schemes and packages that aim to promote the growth and development of MSMEs in India. By availing these benefits, MSMEs can improve their competitiveness, upgrade their technology, and create more employment opportunities.

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