In this post, we will know what is MSME, its benefits, the documents required, and MSME registration as well as the Udyam registration procedure.

What is MSME?

MSME stands for Micro, Small, and Medium Enterprises. In a developing country like India, MSME  industries are the backbone of the economy.

The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s.

Criteria for MSME Registration

The MSME classification is based on the criteria of investment in plant and machinery and turnover.

Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification* by inserting composite criteria of both investment and annual turnover.

Also, the distinction between the manufacturing and the services sectors under the MSME definition has been removed. This removal will create parity between the sectors. The following is the revised MSME classification*, where the investment and annual turnover, both are to be considered for deciding an MSME.

Turnover does not exceedRs.5 CroreRs.15 CroreRs.250 Crore
Investment in Plant & Machinery
does not exceed
Rs.1 CroreRs.10 croreRs.50 crore

* Further upward revision made by the government

Things To Remember

  • You should register only on a Government portal.
  • The Government’s Udyam Registration portal opens with the URL
  • A Government portal or website will mostly show & have in the URL.
  • The site/portal will also have (MSME) Ministry or Mantralay written on it.
  • It will also have National Emblem on the portal.
  • On completion of the process, the Registration Certificate will be generated & sent to you. Or you can print from the Government portal itself.

Udyam Registration Process

  1. To do the registration the small and medium scale industry owner has to fill a single form that he can do online as well as offline.
  2. If a person wants to do registration for more than one industry then also he/she can do individual registration.
  3. To do the registration he/she has to fill a single form that is available at the website which is listed below.
  4. The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details, and some common information.
  5. In this, the person can provide self-certified certificates.
  6. There are no registration fees required for this process.
  7. Once the detail-filled and upload you would be getting the registration number.

Documents Required For Udyam Registration

  • Aadhar Number
  • PAN Card
  • Copy of Industrial Licence.
  • Bills and receipts on purchase of machinery.
  • Bank Account Details .
  • Business address proof.
  • Copies of sale and purchase bills.
  • Partnership Agreement
  • In case of Companies-
  • Memorandum of Associations (MOA).
  • Articles of Associations (AOA).
  • Certificate of Incorporation.
  • Copy of Resolution passed in general meeting.
  • Copy of Board Resolution.

Udyam Registration of Existing Enterprises and New Enterprises 

The enterprises falling under the micro, small, and medium category would be required to obtain an Udyam Registration Number (URN) by registering itself on Udyam Registration Portal.

No business can receive more than one URN but it may include any number of activities like manufacturing or service or both in one URN.

All existing enterprises registered under Entrepreneur Memorandum-Part-II or Udyog Aadhaar Memorandum needs to register again on Udyam Registration Portal on or after July 01, 2020.

It is necessary to remember that all companies listed before 30 June 2020 will be reclassified according to this Notice. Further, the registrations obtained by the existing enterprises prior to June 30, 2020, would continue to be valid until March 31, 2021

Let Our Experience Be Your Guide. 

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