MSME Registration Procedure in India and Required Documents –

The government offers specific benefits to small enterprises in the form of subsidies and incentives to encourage entrepreneurship. Banks also offer low-interest loans to assist new small enterprises. Small firms must register under the Micro, Small, and Medium Enterprises (MSMEs) Act in order to take advantage of these benefits.

A company may qualify for a number of benefits if it is registered under the MSMEs Act, such as lower bank loans, tax reductions, priority in tendering, and access to various government programmes and incentives.

This is MSME Registration Procedure in India and Required Documents

MSME Registration Procedure in India and Required Documents

MSME Enterprises

The old MSME classification system was based on traits like capital investment in machinery, equipment, or plants. As a result, MSMEs must restrict their investment to a lower level to qualify for MSME incentives, as shown below:

Existing MSME Classification

Sector Criteria Micro Small Medium
Manufacturing Investment < Rs.25 lakh < Rs.5 crore < Rs.10 crore
Services Investment < Rs.10 lakh < Rs.2 crore < Rs.5 crore

Since they were unable to scale their businesses any further, these lower constraints were killing their will to grow. A long-standing demand was also made for the MSME classification to be changed, allowing them to expand their operations and yet qualify for MSME benefits.

The government updated the MSME categorization under the Aatmanirbhar Bharat Abhiyan (ABA) by including composite criteria for both investment and yearly turnover. In addition, the MSME definition no longer distinguishes between manufacturing and service industries. This change brought the sectors closer together.

The following is the updated MSME categorization, which takes into account both investment and yearly revenue when determining an MSME:

Revised MSME Classification

Criteria Micro Small Medium*
Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore

Registration Process

Registration under the MSME Act requires an Aadhar number. Under the MSME Act, any business that meets the MSME criteria may receive Udaym Registration. To get Udyam, an application must be submitted online using the

The Udyam Registration procedure is entirely online, and after the form has been completed and submitted on the Udyam Registration site, the registration certificate will be delivered within a few days. Unless terminated, the Udyam Registration is valid for life.

Documents Required

The Udyam registration procedure is completely online and does not need any papers to be uploaded. However, the proprietor or owner of the business must have the following papers before filing for Udyam Registration:

  • Aadhar Card
    • The proprietor’s Aadhar number must be submitted in the Udyam Registration form in the case of a Proprietorship Firm.
    • The controlling partner’s Aadhar number must be submitted in the Udyam Registration form if the firm is a partnership.
    • The Karta’s Aadhar number must be submitted in the Udyam Registration form in the event of a Hindu Undivided Family (HUF).
    • The Aadhar number of the organization or authorized signatory must be included in the Udyam Registration form whether it is a Company, Limited Liability Partnership, Cooperative Society, Society, or Trust. 
  • PAN Card
  • GSTIN (GST Identification Number), if the enterprise is required to be registered under GST Law.