How to Get MSME Registration in India: Benefits & Process Explained

If you're a startup or small business in India, registering as an MSME (Micro, Small, and Medium Enterprise) can unlock access to government schemes, tax benefits, and financing opportunities.

This is now done through the Udyam Registration Portal—a simplified, online, and paperless process introduced by the Ministry of MSME.

Who Can Register as an MSME?

Any business—whether it’s a proprietorship, partnership firm, LLP, private limited company, or even a co-operative society—can register as an MSME if it meets certain criteria related to investment in plant and machinery or equipment and annual turnover.

As per the latest government classification:

• Micro enterprises: Investment up to ₹1 crore and turnover up to ₹5 crore
• Small enterprises: Investment up to ₹10 crore and turnover up to ₹50 crore
• Medium enterprises: Investment up to ₹50 crore and turnover up to ₹250 crore

Both manufacturing and service sector businesses are eligible.

Documents Required

The registration is completely paperless and based on self-declaration. You don’t need to upload any physical documents. However, keep the following ready:

• Aadhaar number of the business owner (proprietor/partner/director)
• PAN number of the business
• GST number (if applicable)
• Bank account details
• Business address and activity details (NIC Code)

All information is auto-verified through government databases like the Income Tax and GSTN systems.

Step-by-Step Process to Register on the Udyam Portal

Step 1: Visit the official Udyam Registration website: https://udyamregistration.gov.in

Step 2: Click on “For New Entrepreneurs who are not Registered yet”

Step 3: Enter your Aadhaar number and the name of the entrepreneur. Authenticate it using an OTP sent to your registered mobile number.

Step 4: Once verified, you’ll be redirected to a form where you'll need to fill out:

• PAN details
• Business name and address
• Bank account information
• Business activity and NIC code
• Employee and turnover figures (self-declared)

Step 5: Submit the form. The system will automatically validate your PAN and GST details (if applicable).

Step 6: After successful submission, a Udyam Registration Certificate will be issued online. It includes a unique 17-digit Udyam Registration Number and a QR code.

You can download the certificate from the portal anytime.

Key Benefits of Udyam (MSME) Registration

Registering under the MSME scheme provides numerous advantages:

• Priority access to government tenders and procurement policies
• Collateral-free business loans from banks and NBFCs under the Credit Guarantee Fund Scheme
• Subsidies and tax rebates, especially for patent and trademark registration
• Faster approvals and licenses
• Protection against delayed payments from buyers under the MSMED Act
• Eligibility for concession in electricity bills, ISO certification reimbursements, and exemption under certain direct tax laws

Important Points to Remember

• There is no government fee for registration. Be cautious of third-party platforms charging excessive amounts.
• You can register only one MSME per PAN. Multiple business activities can be included under the same registration.
• If your business grows beyond the MSME limits (in terms of investment or turnover), you should update your classification on the portal.

Pro Tip

If you registered your business under the earlier Udyog Aadhaar system (before July 1, 2020), you must migrate to the Udyam Registration system to continue enjoying benefits. The older system is no longer valid for government schemes.

Final Word

MSME registration is one of the most powerful yet underutilized steps for small business owners and startup founders. It’s fast, free, and opens doors to funding, protection, and opportunities. Whether you’re running a small manufacturing unit, a tech-based service startup, or an e-commerce business — getting your Udyam Registration should be on your legal checklist from day one.

Also, we at Legalwiki is organizing, Legalwiki Startup Pitching Competition, 2025 - an exclusive opportunity to pitch your idea in front of leading industry experts, get real-time feedback, mentorship, and win exciting rewards.

Winners will get a cash prize, mentorship to accelerate your idea, an internship opportunity & Certificate Course.

Register Now - https://blog.legalwiki.co/legal-startup-pitching-competition-2025/

To update yourself with LegalNews, visit legalwiki.co