Process and Benefits of MSME/Udyam Certification in India

MSME stands for Micro, Small, and Medium Enterprises. These firms are governed by the MSMED Act of 2006 [Micro, Small & Medium Enterprises Development Act of 2006]. Let’s start with the definitions of Micro, Small, and Medium Enterprises under the MSMED Act.

Also, Read- udyam registration

The MSMED Act previously separated these enterprises into two categories: manufacturing and service and characterized them according to their investment restrictions. According to a recent declaration, the distinction between manufacturing and service industries has been eliminated, and additional turnover factors have been added to the investment limit criterion. The following table summarises the revised definition:

Microbusinesses: Plant and machinery might cost a crore rupees or more. The business has a potential turnover of up to 5 crores.

Small Businesses: The cost of plant and machinery might range from one to ten crores. The company’s annual revenue ranges  Rs. 50 crores 

Medium-sized Businesses (MSMEs): Plant and machinery cost more than 10 crores, but can cost up to twenty crores. The company’s yearly sales potential is in the 100 million range.

The registration of firms that meet the above-mentioned conditions (i.e., obtaining MSME certification) comes with a host of advantages. It’s also important to note that MSME registration is also known as Udyog Aadhar Registration.

The approach for gaining MSME certification in India via the internet is as follows:

  1. Fill out the MSME website’s online form with all of the relevant information:

The crucial information requested in the form is as follows:

Information about yourself:

  • Aadhar number and owner’s name: To be validated, the owner’s/name applicant’s name must match the name on the UIDAI-issued Aadhar card. If the applicant’s name does not match that on the Aadhar card, he or she will be unable to continue filling out the form. An OTP (One Time Password) is sent to the UIDAI-registered cellphone number for verification.
  • PAN: It is required in the event of a co-op, a private limited company, a public limited company, or a limited liability partnership. It is optional in the case of other organisations.
  • Information about your bank account: The account number and IFSC of the business’s bank account.

Information on the business:

  • The name of the company, the type of organisation, and the facility’s location are all crucial considerations. The company’s address The company’s operations began on this date.
  • Manufacturing or providing services is a significant activity.
  • In the United States, there is a code for classifying industries (NIC Code)
  • Investing in Plant and Machinery/Equipment
  • District Industries Center is a non-profit organisation that promotes (DIC)
  1. Fill out the application form:

An OTP is generated and sent to the applicant’s registered Email address and mobile number when the applicant clicks the SUBMIT button (connected to his or her Aadhar number). Enter the one-time password (OTP) that was provided to you.

  1. Complete the CAPTCHA before pressing the Final Submit button:

Note that if the applicant does not yet have an Aadhar number but has applied for one, the following papers may be substituted:

  • A copy of the Aadhar enrolment request or an Aadhar Enrolment ID slip; OR
  • Bank picture passbooks, voter ID cards, passports, driver’s license, PAN cards, and employee photo identity cards are all issued by the government.

The advantages of MSME certification in India are as follows:

  1. MSMEs benefit in particular when supplying goods or services to late-paying clients. The maximum duration is 45 days if the buyer’s agreement does not include a specific payment date. If the buyer does pay within this time frame, he or she will be charged compound interest with monthly rests at 3 times the RBI’s rate.
  1. Bank loans with low interest rates that are subsidised.
  1. Under the Income Tax and the Goods and Service Tax, these businesses have obtained tax incentives in the form of rebates and concessions (GST).
  1. Credit is easy to come by. Your credit score is equally important in this instance.
  1. These companies are the only ones who can make the products.
  1. MSME owners are also eligible for trademark and patent registration discounts and concessions.

Do You Need to Re-Register at the Udyam Registration Portal if You’re an Existing Msme?

Yes, all contemporary enterprises registered under EM–Part-II or UAM must re-check in at the Udyam Registration platform on or after July 1, 2021.

All corporations that were formed before June 30, 2021, maybe classified according to this announcement.

Existing corporations that were formed prior to June 30, 2021, will only be valid until December 31, 2021.

Any business that is registered with a ministry other than the Ministry of Micro, Small, and Medium Enterprises must check in with Udyam Registration.


The company must follow the steps below to become an MSME:

  1. Anyone interested in starting a micro, small, or medium business can use the Udyam Registration portal to fill out a self-declaration form that needs no documents, papers, certifications, or evidence.
  1. A permanent identification number known as the “Udyam Registration Number” will be assigned to an entity (referred to as “Udyam” in the Udyam Registration page) upon registration.
  1. An e-certificate titled “Udyam Registration Certificate” will be delivered upon completion of the registration process.


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