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Udyam MSME Registration

MSME Registration

MSME Registration: benefits, EMD exemption, certificate details, fees, and Udyam Aadhaar download.

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MSME Registration

The Micro, Small, and Medium Enterprises (MSME) sector plays a crucial role in driving India's economic growth by fostering innovation, creating employment, and promoting entrepreneurship. To streamline business registration and ensure easy access to benefits, the Ministry of Micro, Small & Medium Enterprises introduced Udyog Aadhaar, now upgraded to the Udyam Registration portal. This user-friendly platform allows businesses to register effortlessly and unlock various growth opportunities and support with just a few clicks.

The government has implemented a comprehensive framework for MSME registration, providing formal recognition and extensive benefits. The Udyam Registration process requires basic details such as Aadhaar, PAN, and business information, ensuring simplicity and accessibility. Once registered, businesses receive an MSME certificate, which grants access to a range of benefits, including tax exemptions, EMD (Earnest Money Deposit) waivers for government tenders, protection against delayed payments, lower interest rates on loans, and eligibility for subsidies.

TendersPlus simplifies the MSME registration journey by providing expert guidance and end-to-end support. From understanding the eligibility criteria to obtaining your Udyam MSME certificate, TendersPlus ensures a seamless registration experience. With our assistance, businesses can maximize the advantages of MSME registration and unlock new opportunities for growth and success.

Udyam MSME Registration

MSME Classification

MSME classification criteria has been revised by the Government of India, Ministry of Micro, Small and Medium Enterprises in 2020 and is now based on only investment in plant and machinery or equipment and turnover of the company.

Micro Enterprise
  • An enterprise will be classified as Micro if their investment in plant & machinery or equipment is under RS. 1 Crore and their turnover is under Rs. 5 Crore.
Small Enterprise
  • An enterprise will be classified as Small if their investment in plant & machinery or equipment is under RS. 10 Crore and their turnover is under Rs. 50 Crore.
Medium Enterprise
  • An enterprise will be classified as Medium if their investment in plant & machinery or equipment is under RS. 50 Crore and their turnover is under Rs. 250 Crore.

The updated MSME criteria, applicable to diverse sectors in manufacturing, services, and trading, extend eligibility to individuals, startups, private/public limited companies, sole proprietorships, partnership firms, LLPs, SHGs, cooperative societies, and trusts based on turnover and investment. This structured classification ensures targeted government support, fostering the development and growth of MSMEs nationwide.

MSME Registration Categories

The Udyam Registration portal has significantly streamlined the MSME registration process, contributing to the growth of the sector. As of now, a total of 5.90 crore MSMEs have registered under this system, comprising 5.81 crore Micro, 7.36 lakh Small, and 69,000 Medium Enterprises. These businesses collectively provide employment to over 25 crore people, highlighting the sector’s crucial role in India’s economy.

The MSME registration online process caters to two primary categories on the Udyam Registration portal:

  • New Entrepreneurs or without MSME Registration:

    Designed for first-time entrants into formal MSME registration, new enterprises can initiate the process on the Udyam Registration portal.
  • Already Registered as Udyog Aadhar Memorandum:

    Enterprises with existing Udyog Aadhar Memorandum (UAM) registration can smoothly proceed with the online MSME registration.
  • Already having UAM registration under assisted filling:

    Enterprises can update and can proceed with their online registration.

With continuous government support and policy enhancements, MSMEs are consistently growing, strengthening their contribution to industrial development, job creation, and national economic expansion.

MSME Registration Process

Growth Opportunities with MSME Schemes

MSMEs thrive with diverse growth opportunities, from government incentives to technological advancements, fostering innovation and market accessibility.

Access to Govt Schemes
  • MSMEs can benefit from government initiatives like PMEGP, Credit Guarantee Fund Scheme, and CGTMSE for financial aid and support.
Participation in Tenders
  • MSMEs enjoy EMD exemptions, bid price preferences, and reserved categories in government procurement processes.
Technology Upgradation
  • Schemes like CLCSS provide support for upgrading technology to enhance competitiveness and productivity.
Financial Support
  • Easy access to loans with subsidized interest rates under schemes such as MUDRA loans and priority sector lending by banks.
Global Market Access
  • MSME certification opens doors for export promotion schemes, expanding market reach, customer bases, and increasing revenue.
Skill Development
  • Government initiatives focus on training programs to enhance MSME capabilities and foster competitiveness in the global market.
Research and Development
  • Government funding and schemes support R&D activities, enabling MSMEs to innovate and drive growth through new products, services, or processes.
Cluster Development Programs
  • Proximity-based MSMEs benefit from shared resources, knowledge exchange, and collective growth, enhancing efficiency in specific sectors.
Market Linkages
  • Collaboration with e-marketplaces like GeM for better product visibility, increased sales opportunities, and access to government buyers.
Digitalization & Tech Adoption
  • Government incentives and schemes encourage MSMEs to integrate digital tools for improved efficiency and market competitiveness.
Energy Efficiency Programs
  • Financial aid for MSMEs to adopt energy-efficient technologies, lowering costs and promoting sustainability.
Export Incentives
  • Access to duty exemptions, tax rebates, and other incentives for promoting exports and expanding international presence.

Overall, the government's proactive support through various schemes and initiatives is essential in empowering MSMEs, enabling them to scale operations, innovate, and thrive in both domestic and global markets.

MSME Registration Online Process

Start your MSME registration process easily with TendersPlus. Our expert consultancy service team streamlines the process, ensuring your account is ready!

  • Udyam Registration Portal :

    Visit the official Udyam Registration portal for MSME Registration and click on For New Entrepreneurs who are not Registered yet as MSME or those with EM-II.
  • Aadhar Number Verification :

    Aadhar number and Name of Entrepreneur along with OTP verification.
  • PAN verification :

    Enter the Pan number along with Type of Organization and validate the details.
  • Business Details :

    Basic information like Name of Entrepreneur, Mobile Number, Email and details of the enterprise.
  • Financial Details :

    investment in plant and machinery, Turnover details and complete the verification through OTP.
  • Udyam Registration Certificate :

    After successful verification, the system generates a 19-digit unique Udyam Registration Number in the format UDYAM-XX-00-0000000.
  • MSME Registration Fees :

    Registration Process is totally free.
  • TendersPlus Team :

    Reach out to our team anytime at contact@tendersplus.com or chat with us.

Udyam Registration Certificate or the MSME Certificate download can be done after the successful completion of the registration process. The Certificate includes a QR Code for convenient access to enterprise details.

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MSME Certificate Benefits in GeM Portal

MSMEs (Micro, Small, and Medium Enterprises) are provided with various advantages when participating in government tenders, encouraging greater involvement in the procurement process.

Document Cost Waiver
  • MSMEs are eligible for exemption from the cost of tender documents.
EMD Exemption for MSME
  • Benefit from exemption on Earnest Money Deposit (EMD) for government tenders.
Work Criteria Exemption
  • Relaxed work experience criteria for MSMEs to ensure inclusivity in tenders.
Turnover Exemption
  • MSMEs can participate in tenders without meeting stringent turnover requirements.
Security Deposit Waiver
  • Exemption from providing a security deposit, easing the financial burden.
Splitting of Quantity
  • Government tenders may split tender quantities and allocate a portion to MSMEs, enhancing opportunities for smaller enterprises.
Price Preference
  • MSMEs may enjoy a price preference in tenders to help them compete with larger organizations.
Reserved Tender Opportunities
  • Certain tenders are reserved exclusively for MSMEs, increasing access to government contracts.

These provisions are designed to level the playing field, ensuring that MSMEs have better opportunities to secure government contracts and grow their businesses.

Documents for MSME Registration

Accurate documentation and online registration streamline the MSME registration process, unlocking access to government benefits. This ensures a seamless experience for businesses, fostering growth and development with tailored government support.

Documents for GeM Registration
Business PAN Card

PAN of Business entity & Authorized Signatory

Documents for GeM Registration
Aadhaar Card

Id proof of the business owner or authorized signatory

Documents for GeM Registration
Type of Organization

Proprietorship, Partnership or Private

Documents for GeM Registration
Contact Details

E-mail ID and Mobile No. of Enterprise

Documents for GeM Registration
Plant and Office Address

Utility bills or rental agreements

Documents for GeM Registration
Bank Details

Business Bank Account details

Documents for GeM Registration
GSTIN Details

GSTIN Details if applicable

Documents for GeM Registration
Additional Info

Social Category, Business Activity code, Number of employees

GeM Tenders

Explore active government tender opportunities with Tenders Plus, providing seamless access to the GeM Tenders along with free access to documents. Dive into a diverse array of etenders across categories like construction, roads, Civil, Defence, Railways, Manpower, Telecom, IT, power, auctions, and more.

Tender News

Keep updated about the latest tender news from government authorities, GeM Portal and other eprocurement sites, by staying up-to-date on Tenders Plus.

Frequently Asked Questions
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MSME Registration and Udyam Registration refer to the same process. The Ministry of Micro, Small, and Medium Enterprises (MSME) introduced the Udyam Registration system on July 1, 2020, to simplify the MSME registration process.

Under this system, businesses are recognized as Udyam, and their registration process is known as Udyam Registration . Upon successful registration, enterprises receive an MSME registration certificate, enabling them to access various government benefits, financial support, and tender opportunities. This online and paperless process ensures seamless MSME recognition, promoting ease of business operations across India.

The Udyam registration certificate is also known as the MSME registration certificate.

The basic documents required for MSME registration are as follows:

  • Business PAN Card - PAN of Business entity & Authorized Signatory
  • Aadhar Card - Id proof of the business owner or Authorized signatory
  • Type of Organization – Proprietorship, Partnership or Private
  • Contact Details - E-mail ID and Mobile Number
  • Plant and Office Address - Utility bills or rental agreements
  • Bank Details – Business Bank Account details
  • GSTIN Details - GSTIN Details if applicable
  • Additional Info - Social Category, Business Activity code, Number of employees.

The registration process is free, with no charges for obtaining MSME registration. The registration process has to be completed on the official website of Udyam Registration. In case of any queries, please connect with the Tenders Plus team for a FREE MSME Registration consultation and avail attractive offers on other services.

  • MSME Certificate

    - also known as the Udyam Registration Certificate, is an official document that certifies a business as a Micro, Small, or Medium Enterprise (MSME) under the Ministry of Micro, Small, and Medium Enterprises (MoMSME). Upon successful Udyam Registration, the certificate is issued online and contains a dynamic QR code, which allows instant access to the enterprise details on the official portal.
  • Download MSME certificate

    - visit the official Udyam Registration portal online and login with your 16-digit Udyam Registration Number and mobile number. Then go to "Print Udyam Certificate" option to access and download your certificate. The Udyam Registration Certificate is essential for accessing various government benefits, including tender participation, subsidies, and financial support programs.

  • Visit the Udyam Registration Portal: Access the official Udyam Registration portal.
  • Aadhar Number Verification: Aadhar number of the business owner or the authorized signatory for verification.
  • Fill in Business Details: Complete the registration form with necessary information such as business name, type, location, and investment in plant and machinery.
  • Verification through OTP: Verify through a one-time password (OTP) sent to the registered mobile number linked with Aadhar.
  • Receive Udyam Registration Number: After successful verification, the system generates a unique Udyam Registration Number. It is a 19-digit Reference Number and the format is UDYAM-XX-00-0000000.

Udyam certificate is valid for a lifetime. There is no expiry of the UdyamMSME Registration Certificate.

The MSME registration is completed as soon as the Udyam MSME registration form is filled and submitted on the Udyam Registration Portal. After submission of the form, a message will be displayed on the screen about the completion of the MSME registration. The Ministry of MSME issues the Udyam Registration Certificate (or MSME Certificate), which features a QR Code for easy access to enterprise details. The unique 19-digit MSME Registration / Udyam Number serves as the permanent identity for Udyam-registered enterprises.

The turnover limit for Micro, Small, and Medium Enterprises is as follows:

  • Micro enterprises: Turnover below Rs. 5 crores.
  • Small enterprises: Turnover below 50 crores.
  • Medium enterprises: Turnover below Rs. 250 crore.

There is no difference between Udyog Aadhaar and Udyam registration. The Udyam registration certificate is an identification of a business as an MSME. Udyog Aadhar was the old platform requiring registration for MSME. The main aim of introducing the Udyam registration is to simplify the MSME registration for small-scale businesses to easily register themselves under Micro Small Medium Enterprise.

While MSME registration is not obligatory, businesses that choose to register can access multiple benefits and incentives, facilitating growth and simplifying business operations.

More than 5.9 crore enterprises are already benefiting from MSME Registration and these businesses enjoy a multitude of benefits, ranging from financial support to preferential treatment in government procurement. Some of the key benefits are as below:

  1. Financial Support and Subsidies: MSMEs registered under the MSMED Act are eligible for various financial incentives, MSME loans, and subsidies from the government. This can include priority sector lending and preferential interest rates, facilitating easier access to credit.
  2. Credit Guarantee Scheme: The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free credit facilities to MSMEs, enabling MSME loans without the burden of heavy collateral.
  3. Market Access and Procurement Preferences: The government aims to promote MSMEs by providing them with exclusive opportunities in government procurement. A certain percentage of government contracts on the GeM Portal is reserved for MSMEs, giving them a level playing field in competing with larger enterprises
  4. Technology Upgradation Support: The government offers support for technology upgrades to enhance the competitiveness of MSMEs. This can include subsidies for adopting new technologies, implementing energy-efficient processes, and promoting innovation
  5. Tax Benefits: MSMEs enjoy several tax benefits, including exemptions under the Goods and Services Tax (GST) scheme. Additionally, there are provisions for income tax rebates and reduced tax rates for MSMEs, further easing their financial burden.
  6. Turnover Exemption, Work Criteria Exemption, EMD Exemption, and Security Deposit Waivers in Tender Applications: These exemptions provide MSMEs with a competitive edge when applying for tenders on GeM Portal and other eprocurement platforms, fostering equal opportunities in procurement.
  7. Barcode Registration Subsidy: Subsidies for barcode registration reduce operational costs for MSMEs, promoting efficiency in product management.
  8. ISO Certification Fees Reimbursement: Reimbursement of ISO certification fees incentivizes MSMEs to adhere to international quality standards.
  9. Electricity Bills Concession: MSMEs receive concessions on electricity bills, reducing operational costs and improving overall financial viability.
  10. Special Consideration in International Trade Fairs: MSMEs receive special consideration and support when participating in international trade fairs, promoting global exposure.

Yes, MSMEs can avail of various benefits under the GST regime such as composition scheme, threshold exemption, and input tax credit.

Yes, MSMEs can avail benefits under the National Small Industries Corporation (NSIC)

As per the amended Public Procurement Policy for MSEs, 2012, Central Government Ministries, Departments, and Public Sector Undertakings (PSUs) are required to procure a minimum of 25% of their total annual purchases from Micro and Small Enterprises (MSEs). This policy aims to promote the growth of MSMEs in India by providing them with greater opportunities in government tenders and ensuring their participation in the public procurement system.