Depending on the applicant’s business’s annual turnover, he/she can apply for MSME loan by checking and comparing loan deals from various financial institutions and filling and submitting online. Applicants can apply for MSME registration by visiting the official website and applying it online, at free of cost. Further, MSMEs are classified in two categories, such as manufacturing enterprises and service enterprises. Let’s further discuss regarding MSME registration with steps and processes involve; along with some important information.
New Process for MSME Registration Online
Below mentioned are the steps to follow for the Registration Process for MSME:
Step 1: Fill in MSME registration form online with all required details by visiting the official website by clicking here
Step 2: After submitting application form along with documents, applicant shall receive a registration number
Step 3: Next step is paying the registration fee online
Step 4: After payment is successful, the authority will register the applicant’s business as MSME within 1-2 working days
Step 5: MSME registration certificate shall be delivered by an email to applicant’s registered email address.
The process for MSME registration is a quick and hassle-free for businesses to get registered as MSMEs under Ministry of MSME.
Eligibility for MSME Registration
The distinction between the manufacturing and services enterprises has been removed by making the investment amount and annual turnover similar for enterprises engaged in both the sectors.
|MSME – Merged Criteria: Investment and Annual Turnover|
|Sector/Enterprise Type||Micro Enterprise||Small Enterprise||Medium Enterprise|
|Manufacturing & Services Sector, Both||Investment less than Rs. 1 crore|
Turnover less than Rs. 5 crore
|Investment less than Rs. 10 crore|
Turnover up to Rs. 50 crore
|Investment less than Rs. 50 crore|
Turnover up to Rs. 250 crore
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Documents required for MSME Registration Online
- Aadhaar card
- Rent agreement
- Property paper
- Cancelled Cheque
- Company Registration i.e., Sale or Purchase Bill and PAN card
Business Address Proof
For self-owned premise: Lease deed, property tax receipt, possession letter, allotment letter, etc.
For rented premise: NOC from the landlord, rent receipts, utility bills or document evidencing the landlord’s ownership, etc.
The charges to get MSME certificate are Rs. 1999 (all inclusive) per certificate and can be paid by their secured gateways.
- Copies of Sale and Purchase Bills
- Partnership Deed
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Copies of Licenses and Bills of Machinery Purchased
Benefits of MSME Registration
- MSME certificate helps in getting government tenders
- Under bank loan, 15% import subsidy on fully automatic machinery
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business
- Compensation of ISO certificate expenditure
- Helps in getting low interest rates
- Registered MSMEs gets tariff subsidies and tax and capital subsidies
- Gets exemption under Direct Tax Laws
Components of MSME application form
- Aadhar number
- Name of Entrepreneur as per Aadhar card
- Social category (General, OBC, SC/ST)
- Physically Handicapped
- Name of Enterprise
- Type of Organization (Proprietorship, Partnership Firm, Private or Public Limited Company, Limited Liability Partnership, Cooperative Society, Hindu Undivided Family, Self-Help Group, Society or Trust)
- PAN Card
- Location/Address of Plant
- Country, State, District, City, Tehsil, PIN Code
- Office Address
- Mobile Number, Email ID
- Date of Commencement of Business
- Bank account number and IFSC code
- Business activity of enterprise
- NIC 2 Digit Code – choose primary activity
- Additional detail of enterprise
- Number of employees
- Investment amount in Plant & Machinery
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How to Check MSME Registration status by reference number and name?
Step 1: To check MSME application status, applicants can visit MSME registration official portal or click here
Step 2: Applicants need to enter their 12 digit UAM number followed by verification code as displayed in captcha image
Step 3: Click on ‘Verify’ to check the status of MSME registration online
Steps to print / download Udyog Aadhaar / MSME registration certificate online:
Step 1: To print Udyog Aadhaar / MSME registration certificate, applicant can click here https://udyamregistration.gov.in/UA/PrintAcknowledgement_Pub.aspx to fill in required details
Step 2: Applicant is required to enter his/her 12 digit UAM No. i.e. DL05A1234567
Step 3: Applicant also needs to enter his/her mobile number, as per Udyog Aadhaar Certificate
Step 4: After submitting these details, applicants can download or print their Udyog Aadhaar / MSME registration certificate
Note: Update or correction in MSME certificate is free of cost, same like registration is free
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FAQs on MSME Registration
Ques: Who can apply for MSME registration?
Ans: MSME registration can be obtained by the following entities:
- Private Limited Company
- Sole Proprietorship
- Partnership Firm
- Limited Liability Partnership (LLP)
- Self Help Groups (SHG)
- Public Limited Company
- Co-Operative Society
Q. How can I get a copy of my MSME certificate?
Ans. Once the MSME registration is complete, you will receive a copy of MSME certificate on your registered email address.
Q. What is MSME Certificate Update Fee?
Ans. MSME Registration and MSME Certificate Fee is free of cost.
Q. When MSME Certificate will be issued?
Ans. MSME Certificate is issued after 1-2 working days of form submission.
Q. What are the chances of rejection of Online MSME Application?
Ans. There are several reasons of rejection of MSME application like low CIBIL score, unpaid debts, loan defaults, low cash flow, lack of business plan, incomplete documentation, false information, etc.
Q. Can the MSME borrowers get collateral free loans from banks?
Ans. Yes, they can get collateral free loans if they opt for unsecured business loans and if they maintain good CIBIL score with decent financial and loan repayment history. Rest if depends on the eligibility criteria to be cleared by applicant defined by the respective bank.
Q. What is the difference between Udyam Registration and MSME/Udyog Aadhar?
Ans. Udyam Registration is MSME registration to start business under Ministry of Micro, Small and Medium Enterprises (MoMSME) approved by Government of India. Whereas MSME/Udyog Aadhaar is a 12-digit Unique Identification Number (UIN) provided by the MoMSME for Small and Medium Enterprises (SMEs).
Q. What is MSME helpline?
Ans. MSME Contact us or Helpline numbers are as follows:
For MSME: 011-23063288 / 011-23063643
For Udyam Registration: 011-23061500 or 011-23061546
Ques: Is Aadhaar number mandatory for online MSME registration?
Ans: For MSME registration, Aadhaar card is mandatory.
Ques: Can MSME borrowers get collateral free loans from financial institutions?
Ans: Yes MSME borrowers get collateral free loans from financial institutions
Ques: Is credit score necessary for the MSE borrowers?
Ans: No, credit score is not required for MSMEs.
Ques: Do I get a hard copy or physical copy of the MSME certificate?
Ans: Government has initiated paperless work, so no physical copy is issued. However, the authority emails the certificate instead.