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mSME Registration In India: Procedure, eligibility, documents required

What is MSME?

MSME means Micro, Small and Medium Enterprises. In a country like India, these  industries are the backbone of the economy. Further, they contribute to 45% of total industrial employment, 50% of total exports and 95% of industrial units of India. Also, more than 6000 category of products are manufactured in these units(source

Who is eligible?

Entities engaged in both manufacturing and service industry can be registered under this Act . While, this registration is not necessary but it is beneficial to get registered. As a result of registration, various benefits in taxation, setting up the business, credit facilities, loans, etc can be availed.

Classes of MSME Enterprises:

As per MSMED Act, 2006 these enterprises can be classified under two classes:
1. Manufacturing Enterprises
2. Service Enterprises

1. Manufacturing Enterprises

Manufacturing enterprises are those enterprises which are engaged in the production of goods. It also includes enterprises which are involved in the process of adding value to the final product. These are defined on the basis of investment in Plant & Machinery.

2. Service Enterprises

Service enterprises are those enterprises which are engaged in providing services. They are defined on the basis of investment in equipments.

Limits of investment in plant and machinery and equipment for classification is described in table below:


Documents required for MSME Registration are:

1. For own premises - Purchase deed  
2. In case of rented premises - Rent agreement & NOC from the owner 
3. Copies of Sale Bill and Purchase Bill
4. Partnership Deed/ Memorandum and Article of Association
5. Copy of Licenses and Bills of Machinery Purchased

Process for Registration

1. To do the registration the small and medium scale industry owner has to fill a single form which 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 which is available at the website which is listed below.
4. In this, the person can provide self-certified certificates.
5. Once the detail-filled and upload you would be getting the registration number.

Benefits of Registration:

1. MSME enterprises can obtain security free loans which help them to grow.
2. 50% discount is available to for patent registration by MSME enterprise
3. Due to MSME registration, bank OD become cheap as the interest rate is very low around ~ 1 to 1.5%.
4. Enterprises registered under the Act are eligible for a subsidy for promotion.
5. There is a One Time Settlement Fee for non-paid amounts of MSME.
6. There are many government tenders which are only open to the MSME Industries.
7. They get easy access to credit.
8. MAT credit is available for up to 15 years instead of 10 years
9. There are various tax rebates for MSME.

MSME schemes launched by the Government are:

1. Udyog Aadhaar :

Aadhaar card is a 12 digit number given to all individuals by the government. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Registration can be done both ways in the online mode or the offline mode.

2. Zero Defect Zero Effect:

In this model, goods produced for export have to adhere to a certain standard to eliminate rejection or sending back to India. To achieve this the government has launched this scheme. In this, if the goods are exported these are eligible for some rebates and concessions.

3. Quality Management Standards & Quality technology Tools:

Registering in this scheme will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology. In this scheme, activities are conducted to sensitize the businesses about the new technology available through various seminars, campaigns, activities etc.

4. Grievance Monitoring System:

Registering under this scheme is beneficial in terms of getting the complaints of the business owners addressed. In this, the business owners can check the status of their complaints, open them in case of dissatisfaction with the outcome.

5. Incubation:

This scheme helps innovators in implementing their new designs, ideas or products. It should be noted that around 80% of the project cost can be financed by government in this. Further, it promotes new ideas, designs, products etc.

6. Credit Linked Capital Subsidy Scheme:

New technology is provided to business owners in exchange of old technology. Also, subsidy is given help them growing their business. These small, micro and medium enterprises can directly approach the banks for these subsidy.

7. Women Entrepreneurship:

This scheme is especially started for women who want to start their own business. The government provides capital etc to these women so that they manage their business and expand it.

For information regarding registration of sole proprietor, click


Ans: It include only those sectors, as part of the priority sector that impact large sections of the population.
Ans: For facilitating flow of credit and enhancing the trust, credit rating is done by reputed credit rating agencies.
Ans: No, it is not necessary. However, it is beneficial to get credit rating done.
Ans: The Ministry implements the Information and Communication Technology scheme to encourage them to adopt these Tools and Applications. As a result, it improves their productivity and competitiveness in the National and International Market.
Ans: Original values of Plant & Machinery are taken into account. In other words, for calculating investment, cost of pollution control, R&D, industrial safety devices etc as specified shall be excluded.
Ans: Yes, sole proprietor can apply for MSME Registration.
Ans: MSMED stands for Micro Small & Medium Enterprise Development act, 2006.
Ans: MSME Certificate is valid for 5 years.
Ans: MSME has recently changed in Udyog Aadhar, they both are the same.
Ans: Yes, publishing books come under MSME sector.
Ans: After filing online application form, Registration Certificate will be issued immediately on E-mail.
Ans: In the interest of environment no physical copy of Certificate will be issued. overall, government believes in paperless work
Ans: Every application will be approved. No application will be rejected. Application will be approved on the basis of information provided by applicants.
Ans: Yes, at present, it is mandatory.
Ans: There is no difference between MSME Registration and SSI Registration. Earlier MSME Registration was know as SSI Registration.

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