Why Does Your MSME Certificate Matter? How to Keep It Handy?

MSMEs hold great importance for both business owners and the Indian economy. While it accounts for 30% of the nation’s GDP and employs over 25+ crore people, it offers many growth opportunities to business owners. The exports itself have grown from ₹3.95 crore in 2021 to ₹12.39 crore in 2025. Getting an MSME certificate from the Udyam registration certificate platform is where it all starts.

The importance of MSME certificate, however, goes just beyond legal recognition and compliance. MSME certificate benefits in unlocking access to essential growth, government schemes, affordable loans and open tenders. Discover the MSME certificate meaning, benefits, how to keep it safe and where to use MSME certificate.

What Is an MSME Certificate?

An MSME certificate is an official document or certificate that the Ministry of Micro, Small, and Medium Enterprises issues under the oversight of the Indian government. The ministry provides this certificate only to MSMEs, which are businesses that participate in economic activities such as manufacturing, processing, and services.

The ministry provides a user-friendly interface and platform, the Udyam portal, for MSME certificate application and registration. The portal also provides a digital version of the Udyam registration certificate with lifetime validity. One of the most important benefits of an MSME certificate is that businesses can enjoy not only official recognition but also government incentives and advantages upon submitting MSME registration proof.

Why Your MSME Certificate Matters

If you are an MSME business owner, you probably already have an MSME certificate with you. If you are an aspiring entrepreneur with a solid business plan, you will need to know how to apply for an MSME certificate.  No matter the situation, MSME certificate benefits make it worthwhile.

The MSME certificate functions beyond formalities because it unlocks numerous benefits which support business expansion through financial accessibility. These are the key benefits of MSME certificate you must know:

1. Access to Loans & Credit

If you are questioning where to use MSME certificate, the answer is it is one of the most important documents that you will need to present when applying for the loans. Banks, NBFCs and lenders all ask for it to approve loans.

• It showcases your eligibility to secure both secured and unsecured business loans through the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme.
• Banks, NBFCs, lenders and financial institutions enhance the availability of working capital and term loan options.
• Whether you want to apply for the MUDRA Yojana for new business or Step Up India scheme, you need to submit the MSME certificate with the application.

Based on credit history, businesses can access special financing arrangements like low interest rates and instant financing.

2. Eligibility for Government Schemes

The government of India recognises the importance of MSMEs and their contribution to GDP. This is why the government offers many business loans, schemes and subsidies. The MUDRA Yojana alone has approved over ₹33+ lakh collateral-free loans to MSMEs. MSME certificate allows you to access two main government schemes known as:

• If you are starting a new business venture, you can access funding through PMEGP (Prime Minister’s Employment Generation Programme).
• You can avail of Pradhan Mantri Mudra Yojana (PMMY) for your non-farm small and micro enterprises.

MUDRA Yojana
Shishu	Up to ₹50,000
Kishore	₹50,000 – ₹5 lakh
Tarun	₹5 lakh – ₹10 lakh
Tarun Plus	₹10 lakh – ₹20 lakh

As a business owner, you can apply for different types of business loans in India depending on your financial needs and objectives. Secured loans, however, necessitate you to pledge your assets, inventory or property as collateral.

FlexiLoans offers collateral-free loans up to ₹ 50 lakhs. With competitive interest rates starting at just 1% per month, it ensures that finances not only help you grow your business but also make it easy to repay.

3. Participation in Tenders & Public Procurement

• MSME certificate finds their best application in public procurement activities.
• Through both GeM (Government eMarketplace) and other online platforms, the Government offers priority access for procurement to MSMEs.
• The government demands MSME registration from participants to enter its tenders and exempts such companies from EMD payment requirements in multiple invitation-to-bid procedures.

4. Tax Relief & Compliance Benefits

• Companies serving as defined under the MSMED Act need buyers to settle their payments within 45 days under legal protection.
• If there is a delay in payments from buyers, the MSMEs use the Samadhan Portal to solve disputes through an efficient dispute resolution system.

5. Boost in Business Credibility

An MSME registration proof enables you to establish better trust relationships with:

• Customers and vendors during onboarding.
• Platforms like Amazon B2B, Flipkart Seller Hub, and other marketplaces.

Your business gets good visibility that enables growth together with improved sales numbers and enhanced market position. Whether you’re applying for business loans or government subsidies, keeping your MSME registration proof handy saves time and fast-tracks approval.

Where You’ll Be Asked for the MSME Certificate

From business loan applications to eCommerce marketplace onboarding, you must submit a Udyam registration certificate at every step of your business operation and expansion. Here is where to use MSME certificate:

Use Case	Why It’s Needed
Bank loan applications	To access priority sector lending and collateral-free loans
Vendor onboarding	For trust-building and faster approval as a verified MSME
Government portal registrations	Mandatory for subsidies, schemes, and procurement policies
Startup India schemes	Require proof of enterprise classification
Trade fairs/expo registrations	To get stalls at discounts or exclusive access
Marketplace registrations (Amazon, Flipkart, etc.)	To onboard as a seller and access MSME-specific promotions

How to Keep Your MSME Certificate Safe and Handy

Once you complete your MSME registration, the certificate is available only in digital format. Although there have been offline choices in the past, the online Udyam registration portal is now the norm, which is completely digital and paperless.

How to Keep MSME Certificate Safe

Here is how to keep MSME certificate safe and handy:

• Save the PDF copy in your Google Drive, iCloud, or another secure cloud storage service.
• Print and laminate a hard copy to display in your office or keep in your business file cabinet.
• Share a digital copy with your CA, accountant, operations head or anyone who needs it for tax, loan, or compliance purposes.
• Bookmark the Udyam portal login page for quick access to the certificate at any time.
• Use DigiLocker, India’s official document vault, for easy retrieval and government verification.
• Store the certificate in a password-protected folder on your local computer for added security.

Remember, an MSME certificate download is always possible, but taking these precautions saves you from last-minute hassles when opportunities arise.

How to Re-download the MSME Certificate

Lost access to your certificate? You can always perform an MSME certificate download in just a few clicks. Here’s a quick guide on how to download MSME certificate:

• Click here or visit the official Udyam Registration portal: https://udyamregistration.gov.in.
• Click on the “Print/Verify” tab in the menu bar.
• Enter your Udyam Registration Number (URN) and the mobile number used during registration.
• Complete the CAPTCHA and click Generate OTP.
• Enter the OTP received on your registered mobile number.
• Click “Validate & Generate Certificate”.
• Download or print your MSME certificate instantly.

As you download your MSME certificate, ensure you save a copy of it in Google Drive, iCloud, or storage immediately to avoid future delays.

Step-by-Step Guide to Retrieve Your MSME Certificate Online

If you’ve misplaced your certificate or registration number, here’s a step-by-step guide on how to retrieve it online.

Method 1: If You Remember Your URN

This method is fast, secure and ideal for you if you know your URN.

• Go to https://udyamregistration.gov.in or click here.
• Click on the “Print/Verify” option in the top menu.
• Enter:
  • Your Udyam Registration Number
  • Your mobile number linked with Aadhaar
  • CAPTCHA code displayed on the screen
• Click “Generate OTP” and verify it.
• Once verified, click on “Validate & Generate Certificate”.
• Your MSME certificate will be displayed. You can download or print it directly.

Method 2: If You Forget Your URN

Follow these steps to retrieve your MSME certificate online if you don’t remember your URN:

• Go to https://udyamregistration.gov.in or click here.
• On the same Udyam portal, click “Forgot Udyam Registration Number”.
• Enter the mobile number or email ID you used during registration.
• Click “Generate OTP” and complete the verification.
• Once verified, your URN will be sent to you.
• Now, go back and follow Method 1 to download your certificate.

Troubleshooting Common Issues Related to MSME Certificate

While the entire MSME certificate application process is digital, there is no guarantee that you will not run into issues, especially when you are trying to download or retrieve your MSME certificate. Here are the most common issues you will run into and how you can fix them quickly:

• Not Receiving OTP: At the start of the process, you will receive an OTP for validation. If you are having trouble receiving it, ensure your mobile network is stable, and you are using Chrome or Microsoft Edge for better OTP compatibility.
• URN Not Found: Double-check your Udyam Registration Number for typos if it shows URN Not Found. If forgotten, you can use the “Forgot URN” option on the Udyam portal.
• Wrong Mobile/Email: If you’ve changed your mobile or email since registration, you’ll need to update your contact details through the Udyam portal’s update section.
• Browser-related Glitches: Older browsers like Internet Explorer may not support all portal features. Switch to Chrome or Edge for the best experience.

Common Mistakes MSME Owners Make

Many business owners who successfully register their businesses commit basic mistakes following their success. While the common mistake persists, you can follow these tips to avoid committing them in the first place:

• Forgetting to Download the Certificate: When you complete the MSME registration process, ensure that you download a PDF copy of it and store it either on the cloud or in storage. Forgetting to download the certification necessitates following the re-download process.
• Not Sharing the URN with Finance Teams: You can share your URN with finance teams only when your business is applying for MSME loans, credit guarantees, or other financial schemes that require MSME registration proof.
• Thinking Certificate Needs Yearly Renewal: The certificate does not need renewal despite annual assumptions. Udyam certificates have an unlimited validity period.
• Not Updating Details in Case of Changes: The failure to maintain accurate PAN information, together with mobile number and extended business address details and email address on the portal, leads to system errors.

Conclusion

The MSME certificate serves as an essential tool that enables opportunities for growth and financing. The significance of registering as an MSME cannot be overstated since it provides businesses vital access to low-interest loans as well as government schemes, marketplace opportunities, and tender participation.

Obtaining the certificate alone fails to guarantee success. Make sure your MSME certificate stays secure while involving your finance team, and utilise it at every available opportunity. Your Udyam registration certificate also serves as the key to accessing various platforms, such as financial loan applications, B2B platform memberships, and trade fair entries.

Need a loan for your MSME business using just your certificate? Apply now with FlexiLoans. It is fast, paperless, and built for growth.

FAQs about MSME Certificate