MSME Registration In India: Procedure, Documents Required

MSME industries are the backbone of the economy. They are also known as Small Scale Industries (SSIs). The government of India provides an MSME registration to the industries classified by the government as Micro, Small and Medium Enterprises (MSME) in India. The MSME registration helps MSMEs to obtain various benefits provided by the government for their establishment and growth. 

Udyam Registration, also known as MSME Registration, represents the revamped method for enrolling Micro, Small, and Medium Enterprises (MSMEs) introduced by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. Simultaneously, the Ministry revised the MSME classification criteria. Under this system, an enterprise is referred to as 'Udyam,' and the associated registration procedure is termed 'Udyam Registration.' Businesses are given a permanent registration number and a recognition certificate following successful MSME registration.

BRL India is your trusted partner when it comes to simplifying the Udyam Registration process. Our dedicated team of experts is well-versed in the intricacies of MSME registration and can help your business secure its Udyam Registration swiftly and seamlessly. With our guidance, you can navigate the paperwork and compliance requirements effortlessly, ensuring that your business enjoys the full range of benefits and recognition that comes with Udyam Registration. Choose BRL India for a hassle-free journey towards official MSME certification."

What is MSME Classification?

Initially, when the government introduced the MSME registration in 2006, the MSME classification was based on the investment criteria in plant and machinery or equipment. The government revised the MSME classification by inserting annual investment and annual criteria. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed.

MSME Definition

The definition of MSME (Micro, Small, and Medium Enterprises) has undergone significant changes with the introduction of the Atmanirbhar Bharat package.

These revisions now consider a composite set of criteria, namely investment and turnover, with increased thresholds. Additionally, the previous distinction that separated the service and manufacturing sectors under MSME classification has been removed.

Composite Criteria: Investment in Plant / Machinery and Turnover
Sl.No	Type of Enterprises	Investment	Turnover
1	Micro enterprises	Less than Rs.1 Crore	Less than Rs.5 Crore
2	Small enterprises	Less than Rs.10 Crore	Less than Rs.50 Crore
3	Medium enterprises	Less than Rs.20 Crore	Less than Rs.100 Crore

MSME Registration Eligibility

All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration. Thus, the MSME registration eligibility depends on an entity’s annual turnover and investment. The following entities are eligible for MSME registration:

1. Individuals, startups, business owners, and entrepreneurs
2. Private and public limited companies
3. Sole proprietorship
4. Partnership firm
5. Limited Liability Partnerships (LLPs)
6. Self Help Groups (SHGs)
7. Co-operative societies
8. Trusts

For MSME registration, you'll need the following documents:

1. Aadhaar card
2. PAN card

The good news is, there are no registration fees, and you don't need to provide proof of documents. The Udyam Registration Portal automatically retrieves PAN and GST-linked details on investment and turnover from government databases, as it's integrated with Income Tax and GSTIN systems.

While GST registration isn't compulsory for enterprises that don't require it, those mandated by GST laws must enter their GSTIN for MSME Registration or Udyam Registration.