MSME Udyam Registration

Introduction

The Union Ministry of MSME launched the Udyam Registration Portal on 1st July 2020 to simplify MSME registration on a self-declaration basis. It is part of the Government of India’s relief measures during the Covid-19 pandemic. Currently, over 11 lakh MSMEs are registered on the portal.

Difference Between MSME Registration and Udyam Registration

MSME Registration is the older term and certificate issued before July 2020.
Udyam Registration is the new simplified online registration process replacing MSME registration.
Both certificates serve the same purpose, but Udyam issues a unique Udyam Aadhaar Number (UAN), making the process easier and fully digital.

What is MSME Registration?

MSME registration was introduced on 2nd October 2006 to promote Micro, Small and Medium Enterprises (MSMEs) in India, supporting the country’s economic growth and competitiveness.

Definition of MSME (As per Latest Amendment)

The latest amendment (May 2020) merged the manufacturing and service sectors’ criteria and introduced annual turnover limits alongside investment limits.

Criteria	Micro	Small	Medium
Investment	≤ Rs. 1 Crore	≤ Rs. 10 Crore	≤ Rs. 50 Crore
Annual Turnover	≤ Rs. 5 Crore	≤ Rs. 50 Crore	≤ Rs. 250 Crore

Micro Enterprise: Investment ≤ 1 Cr & Turnover ≤ 5 Cr
Small Enterprise: Investment ≤ 10 Cr & Turnover ≤ 50 Cr
Medium Enterprise: Investment ≤ 50 Cr & Turnover ≤ 250 Cr

Benefits of MSME/Udyam Registration

Eligibility for government special tenders exclusive to MSMEs.
Access to loans at subsidized interest rates from banks.
Tax rebates and incentives.
Reduced fees for patent registrations.
Priority in government licenses and certifications.
Access to various state and central government schemes.

Documents Required for MSME/Udyam Registration

PAN Card of proprietor/directors/partners.
Aadhaar Card of proprietor/directors/partners.
Proof of office address (Allotment letter, Lease agreement, Possession letter, Property tax receipt).
Rent agreement + NOC from landlord (if rented).
Purchase bills for raw materials.
Sale bills for finished products.
Partnership deed (if applicable).
MOA, AOA, Certificate of Incorporation, and Board resolution (for companies).
Industrial license (if applicable).
Affidavit on Rs. 10/- stamp paper about power and machinery status.
Purchase bills of machinery installed.
Bank account statement.