In India, starting your own business may seem easy due to the digitization of databases implemented by the government, but it still involves lots of financial and legal jargon. The most important step for a small business proprietor in India is MSME Registration in India. With this registration, you receive government benefits as subsidies, tax exemptions and loans. However it can be confusing – particularly in case you’re registering your business the very first time.
The good news is that MSME registration has now become available online. Whether you reside in Delhi, Mumbai, Bangalore or a smaller town like Coimbatore or Bhopal, the registration steps will be the same. Here, we will discuss MSME registration requirements and essential “MSME registration Tips for My City” in the simplest way possible, so you can complete this process in your own city.
What is MSME Registration?
MSME translates to Medium, Small, and Micro Enterprises. Such businesses contribute to the employment and local trade in India. MSME Registration provides businesses an official identity under the government scheme. Once registered, businesses can receive benefits including :
- Lower interest rates for mortgages.
- Priority in government tenders.
- Tax benefits & rebates.
- Protection against deferred payments
- Subsidies on electricity, patents and trademarks
If you wish to expand your business without being monetarily pressured, then MSME registration in India will be perfect for your business.
Who Can Apply for MSME Registration?
Any business which falls under the MSME category may apply. Business are divided into Micro, Small and Medium Enterprises based on investment in machinery and plant and annual revenue :
| Category | Investment Limit | Annual Turnover Limit |
| Micro | Up to Rs. 1 crore | Up to Rs. 5 crore |
| Small | Up to Rs. 10 crore | Up to Rs. 50 crore |
| Medium | Up to Rs. 20 crore | Up to Rs. 100 crore |
Businesses in both manufacturing and service sectors can apply. Whether you own a bakery, a small IT firm, a clothing shop, or a local transport service, you can benefit from MSME registration.
Documents Needed for MSME Registration
The best thing of all is that you do not require a lengthy list of documents for MSME registration. The key requirements are:
- Aadhaar Card of the business proprietor
- PAN Card of the business
- Business Address Proof (electricity bill, rent agreement etc.)
- Account Details (account number & IFSC code)
- GSTIN (only if applicable)
The registration is free of cost & all documents are needed only.
Some other details like income tax and GST details are gathered automatically from government databases.
Step by Step MSME Registration Guide
MSME Registration is simple and can be carried out online through the Udyam registration Portal or Udyog Aadhar (MSME). Follow these easy steps to register for MSME:
Step 1: Go to the Udyam Registration Portal
Visit the official Udyam Registration site: www.udyam registration.gov.in.
Step 2: Fill Aadhaar Details
Select New Entrepreneurs and enter Aadhaar Number & Name as shown on Aadhaar card. Simply click on “Validate & Generate OTP”.
Step 3: Verify PAN Card
After checking Aadhaar enter your PAN Card information. In case you’ve filed your Income Tax Return (ITR) then the system will pull your financial details.
Step 4: Enter Business Details
Give some basic information about your business such as:
- Business Title
- Type of Business (sole proprietorship, private limited partnership, etc.)
- Business address and contact Details
- Number of employees
- Main Business activity (manufacturing or services)
Step 5: Enter Investment & Turnover details.
Mention the investment in equipment and machinery details and the annual revenue of your business.
Step 6: Submit & Generate MSME Certificate
Check all information and click Submit. An OTP is going to be emailed to your registered cellphone number. Your Udyam Registration Certificate will then be created after verification.
State-Wise MSME Registration in India
The registration procedure is the same in all states though several states offer extra advantages to MSMEs. Let us take these cities for an example:
MSME Registration in Delhi
- Free skill development programs for MSMEs
- Special business loans from Delhi government
MSME Registration in Maharashtra (Mumbai, Nagpur, Pune)
- Discounts on electric bills for MSMEs
- Special industrial zones for MSME units
MSME Registration in Tamil Nadu (Chennai, Madurai, Coimbatore)
- 50% subsidy on patent Registration costs
- Free export promotion support
MSME registration in Uttar Pradesh (Lucknow, Kanpur, Noida, Varanasi)
- Financial assistance for women business owners
- Support for small scale manufacturing businesses
MSME Registration in Karnataka (Bangalore, Mysore, Mangalore)
- Interest-free loans for small enterprises
- Incubation centers for startups
For understanding the list of other local benefits, visit your state MSME department website.
Tips to Avoid Mistakes in MSME Registration
Here are some important tips to keep in mind during MSME Registration:
1. Use the Correct Aadhaar & PAN Details: Any mismatch can result in rejection.
2. Select the Right Business Type: Register as a Micro, Small or Medium Business.
3. Enter Correct Turnover & Investment info: These Details determine your eligibility.
4. Update Your Contact Details: Your MSME certificate is delivered via email, so enter a valid email ID.
5. Check for Local State Benefits: Some states have additional perks – research those prior to applying.
What Happens After MSME Registration?
Right after finishing your MSME Registration, you will get an MSME Certificate via email. This certificate is essential to claim MSME benefits, loans and tax exemptions.
Your MSME Registration is valid for life but you must update your details as your business grows or expands.
Also Read | Latest Updates on MSME Registration Rules and Regulations in India
Final Thoughts
For any small company owner, MSME Registration in India is your gateway for financial stability and growth. The government has made it even more simpler and 100% online. Whichever city in India you may live in or do business from, registering your business as an MSME is easy and it promises you simple loans, subsidies & tax advantages.
If you need assistance with your MSME Registration, get help from our experts at StartupFino. We can guide you through the procedure so you can concentrate on developing your business while we deal with the paperwork.
Call StartupFino today and register your MSME in India.
FAQs
1. How can I edit my district name in MSME registration?
You can not edit the state and district information of your address when registered under Udyam. But you can update the local address in case you are moving within the same town or city. To do so, log into the Udyam Registration Portal with your credentials and simply click edit My details. Change your new local address and submit the modifications. For changes relating to a change of state or district, contact the authorities or re-register your enterprise to reflect the new location.
2. How can I add another place of business in my MSME registration?
To add another place of business to your MSME Registration, visit the Udyam Registration Portal and log in making use of your Udyam Registration number and also registered mobile Number or email. Head over to Update Details & click “Edit” to modify pre-existing registration info. You can enter the new business location here. Be sure all info is accurate before submitting the updates. Updating your business details helps you remain compliant and get the maximum government benefits for MSMEs.
3. How to register my shop with MSME registration?
Registration of shops as MSME requires Udyam Registration. Go to Udyam Registration Portal and choose new entrepreneurs. Put in your Aadhaar number and validate it using the OTP sent to your registered mobile number. Here, describe your shop (name, address and business activities). Fill in the form with necessary info and submit. Right after submission, you will get an Udyam Registration Number and a certificate by email acknowledging your shop as an MSME.
4. Is GST compulsory on MSME registration?
GST registration is optional for MSME registration when your company is exempt from GST or below the GST threshold limit. But if your business activities call for GST registration under the law, you need a GSTIN before applying for MSME registration. The Udyam Registration Portal connects with GST databases to verify turnover and investment details.
5. How much does MSME registration cost?
MSME Registration, now called Udyam registration, is free of cost. It’s an online, paperless and self-declaration procedure. There are no fees due at any stage of the registration. Rather than using intermediaries, entrepreneurs can complete the registration themselves. Watch out for frauds requesting payment for registration. For authentic free services always use the official Udyam Registration Portal.
6. Can I have two Udyam registrations?
No, one person or enterprise can have only one Udyam Registration. However, a single Udyam Registration might cover both manufacturing and service activities. You can list all the business activities under one registration to be compliant and to enjoy the advantages for MSMEs when registering.
7. What are the fees for MSME registration?
MSME Registration under Udyam registration carries no fees. The procedure is free of charge under the Ministry of Micro, Small and Medium Enterprises to encourage a lot more companies to register and make the most of federal systems. The online registration process is easy and there’s no payment at all required.
8. What documents are needed for MSME registration?
The basic document for MSME registration is the Aadhaar number of the entrepreneur. In proprietorships, the owner’s Aadhaar is needed; in partnerships, the managing partner; and also for Hindu Undivided Families (HUF), the Karta’s Aadhaar is mandatory. Additionally, from April 1, 2021, a PAN & GSTIN have become mandatory. No other documents or proofs must be uploaded during the registration procedure which is based on self-declaration.
