MSME Registration Process

msme registration process

Registration Process for MSME

The entrepreneurial culture in India has seen rapid growth over the past few years. The growth, especially in the semi-urban and rural areas has grown, paving the way to the SME and MSME sectors. To enhance this growth of the SME and MSME sector the government has initiated quite a few schemes, offers and subsidies to increase the participation of individuals in this sector. If a business is registered under the MSME scheme, it is eligible to avail quite a few tax benefits, local schemes and subsidies and other advantages. Banks also give loans to such businesses at a concessional rate and help them in their business and their growth.

Almost 70% of the Indian GDP comes from the MSME and SME sector. This includes businesses right from the agricultural areas to raw materials, manufacturing and retail business. It is important for these companies to be registered under the MSME sector for the growth of the business and also to make it easier for the government.

Apply for MSME LoanApply for MSME Loan

What is the registration of MSME?

Any company that comes under the category of MSME needs t to ensure they are registered under the MSME category. MSME registration stands for the micro small and medium enterprises registration. MSMED Act has been launched by the government of India to support the MSME through various schemes, subsidies, and incentives. With MSME Registration, banks also provide the loans at lower rate of interests, as these MSME play an important role in the country’s economic growth


What businesses are categorized under the MSME scheme?

Not all businesses can come under the MSME category. A business has to make a minimum of particular revenue or a maximum of particular revenue to be able to call them an MSME. The criteria below help one understand how to categorize themselves as an MSME. This also makes it the eligibility criteria for a business to be under the MSME Scheme.


MSME enterprises of the manufacturing sector can be categorized on the basis of the amount invested in plant and machinery –

  1. Micro enterprises– Entities investing less than ₹ 25 lakhs in plant and machinery.
  2. Small enterprises– Entities investing between ₹ 25 lakhs and ₹ 5 crores in plant and machinery.
  3. Medium enterprises– Entities investing between ₹ 5 crores and ₹ 10 crores in plant and machinery.


MSME enterprises in the service sector can be categorized on the basis of the amount invested in equipment-

  1. Micro enterprises– Entities investing less than ₹ 10 lakhs.
  2. Small enterprises– Entities investing more than ₹ 10 lakhs but less than ₹ 2 crores.
  3. Medium enterprises– Entities investing ₹ 2 crores but less than ₹ 5 crores.

MSME Registration Process

Now that you know how to categorise different businesses according to their nature of business and investments, the next step is to know how to register a business as an MSME. This registration requires a few documents, personal details, details about the individual and so on. Read on further to know more about the registration process in the MSME Sector.

Before starting the process, ensure that you have an Aadhar Card. Aadhar Card is compulsory in the registration of MSME. In case you do not have one, an application is to be filled online. You can follow this link to know more.


The following are the documents required for the registration process

  1. Aadhar number of the applicant
  2. Name, gender, PAN number, email id and mobile number of the applicant.
  3. PAN, location, and address of the organization.
  4. A number of employees and the date, you are planning to start your business.
  5. Bank account number and IFSC code
  6. The basic business activity of the enterprise
  7. NIC 2 digit code
  8. Investment in plant and machinery/equipment
  9. MoA and AoA
  10. Copies of Sales Bill and Purchase Bill


Step by step registration process for MSME

  1. Start Registration Process

Click here to start the MSME Registration Process.

  1. Fill Application Form

At the first step, you have to fill basic details in MSME Registration form that will include all the necessary details of your business such as company name, registration number, GST number and so on.

  1. Enter Personal Details

At this stage, you are required to fill in all your personal details such as name, address, PAN Card, bank account details and some common information that is mandatory during the MSME registration process. Also, a photo needs to be uploaded. Ensure that the size of the photo is within the permissible limits for it to be uploaded on the sire.

  1. Executive Will Process Application

At this process, an MSME executive will review your application. In case of any discrepancy, you will be notified about the process and make the relevant changes.

  1. Receive Certificate of Mail

After filling the complete form you will get the certificate for MSME Registration. To know how it would be, you can download a copy of the Sample MSME Certificate. The Ministry will not issue you any hardcopy for it. You will get a virtual certificate for MSME Registration.

This is the process for the MSME registration for companies. Note that the entire registration process is free of cost. However, there are many online portals that do the registration process on behalf of the companies at a certain fee.

Registering a business under the MSME can have certain benefits such as better loan structure, subsidise rates, government help and a lot more. Stay tuned to know more about the benefits of MSME registration in our next article!

No Comments

Leave a Comment

Your email address will not be published.