Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in India's economy as they are the backbone of the country's industrial sector. With a population of over 160 crore people, there is a significant potential for growth for small industries in the country. To take advantage of the various benefits offered by the government, small-scale industries (SSIs) should register themselves as MSMEs.
This registration can be obtained under the MSME Act, regardless of whether the company is involved in manufacturing or service-providing activities.
The MSME Certificate or Udyam Certificate is a document that micro, small, and medium enterprises can obtain by registering with the Indian government. This registration provides access to multiple benefits and government schemes, proving that the business is a registered small-scale entity in India and eligible for associated government benefits.
While MSME registration is not mandatory, it is recommended as it offers several advantages in terms of business finance, loans, credit eligibility, and taxation. The government has disbursed a total of Rs.9.5 trillion in loans to MSMEs in FY21, which is a 40% increase from FY20. Additionally, various government schemes and policies are in place to support the growth and development of MSMEs in India.
An enterprise's classification as a micro, small, or medium enterprise shall be based on the following criteria:
Enterprise Classification | Investment in plant and machinery or equipment | Turnover |
Micro-enterprise | Not exceeding one crore rupees | Not exceeding five crore rupees |
Small enterprise | Not exceeding ten crore rupees | Not exceeding fifty crore rupees |
Medium enterprise | Not exceeding fifty crore rupees | Not exceeding two hundred and fifty crore rupees |
The MSME registration process is free, completely paperless, and based on self-declaration. To register for Udyam, the required form is available on the Udyam Registration portal. No additional documents or proof are required to register an MSME, and only an Aadhaar Number is sufficient for registration. Investment and turnover details linked to PAN and GST will be automatically extracted from government databases. You may keep copies of your PAN card, Aadhar card, Bank account details, and complete postal address (including district and pin code) handy.
If an enterprise already has EM-II, UAM registration, or any other registration issued by any authority under the Ministry of MSME, it must re-register. Each enterprise is allowed only one Udyam Registration, but they can add multiple activities, including manufacturing or services, in a single registration.
To download an MSME Certificate online, an enterprise can register under the MSME Act by applying through the government portal. Upon successful registration, the Ministry of MSME issues an MSME certificate, also known as an Udyam or Udyog Aadhaar Certificate, with lifetime validity. Follow these simple steps to download the certificate from the Udyam Registration website:
Step 1: Go to the Udyam link https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
Step 2: On the top right corner of the webpage, select the Print/Verify drop-down menu.
Step 3: Choose the option ‘Print Udyam Certificate’ from the menu. This will take you to the Udyami Login page.
Step 4: Enter your 16-digit Udyam Registration Number (format: UDYAM-XX-00-0000000) and the mobile number filled in the MSME registration application on the login page.
Step 5: Select an OTP option convenient for you and click on ‘Validate & Generate OTP.’ You can get OTP on mobile or email as per the application details.
Step 6: Enter the received OTP and click on ‘Validate OTP & Print.’ The Udyog Aadhaar Certificate data will appear on the home screen.
Step 7: To get a certified copy, select ‘Print’ or ‘Print with Annexure’ from the top center of the page.
If you choose to print with Annexure, you will receive the certificate along with the Udyam Aadhaar Memorandum (UAM) application. You can also save the certificate as a PDF on your computer or smartphone for future reference. There will be no need for renewal of Registration.
To verify MSME registration by name, you need to have the Udyam Registration Number as well as the mobile number linked with the Aadhaar. The following is a stepwise procedure to check MSME Registration by Name:
Step 1: Visit the official website of MSME at Udyog Aadhaar (Official Website for MSME Registration).
Step 2: Enter your Udyog Aadhar Number.
Step 3: Enter the mobile number that is linked with the Aadhar Card.
Step 4: Enter the verification code and click on ‘Validate Udyog Aadhar.’
You can also check MSME Registration by Name on the MSME Databank. However, note that you need to provide either the Udyog Aadhar Number or the Registration number in both cases.
To check the status of your MSME Registration or Udyam Registration, follow the steps below:
Step 1: Visit the Ministry of MSME's official website https://www.udyamregistration.gov.in/UA/UA_VerifyUAM.aspx.
Step 2: Enter your Udyog Aadhaar number in the box provided.
Step 3: Verify your entry by entering the Captcha Code.
Step 4: Click on the 'Verify' option. The status of your Udyog Aadhaar Registration will be displayed on the screen.
If you have forgotten your UAM/Udyam registration number, you can retrieve it using the OTP verification method. Here are the steps to follow:
Step 1: Choose the appropriate registration option (Udyog Aadhaar Memorandum or Udyam Registration)
Step 2: Select the OTP option that you had filled in on the application form (Mobile or Email)
Step 3: Enter the Mobile number or Email ID that you provided during the registration process.
Step 4: Click on the 'Validate & Generate OTP' button. You will receive an OTP on the selected option.
Step 5: Enter the OTP and click on the 'Validate OTP' button.
Step 6: Once the OTP is successfully verified, you will be redirected to the registration page where you can retrieve your UAM/Udyam registration number.
It is important to note that the OTP will be valid only for a limited time period, usually 10-15 minutes. If you fail to enter the OTP within this time, you will have to generate a new OTP. Additionally, you must ensure that the Mobile number or Email ID you provide is the same as the one you used during the registration process.
An MSME Certificate or Udyam Certificate is a document that micro, small, and medium enterprises can obtain by registering with the Indian government. This registration provides access to multiple benefits and government schemes, proving that the business is a registered small-scale entity in India and eligible for associated government benefits.
There is a misconception that MSME registration and Udyam Registration are two distinct registrations, but this is not true. The Ministry of Micro, Small, and Medium Enterprises oversees both registrations to protect MSME rights and provide them with additional benefits and facilities compared to larger corporations. The name was changed from MSME Registration to Udyam Registration after the registration process was updated and improved, and new qualifying requirements were introduced for MSMEs. In summary, both MSME and Udyam Registration serve the same purpose of promoting and developing MSME enterprises.
The benefits of an MSME registration certificate include tariff, tax, and capital subsidies, low-interest business loans, easy approvals, registrations, and licenses, a 15% subsidy on automatic machines with bank loans, compensation for ISO certificate expenditure, access to government tenders, and exemption under Direct Tax Laws.
No, MSME registration is not mandatory in India, but it is recommended as it offers several advantages in terms of business finance, loans, credit eligibility, and taxation.
Yes, each enterprise is allowed only one Udyam Registration, but they can add multiple activities, including manufacturing or services, in a single registration.
Upon successful registration, the Ministry of MSME issues an MSME certificate, also known as an Udyam or Udyog Aadhaar Certificate, with lifetime validity.
An enterprise's classification as a micro, small, or medium enterprise shall be based on the investment in plant and machinery or equipment and turnover. For example, a micro-enterprise has an investment not exceeding one crore rupees and a turnover not exceeding five crore rupees.
Yes, a person can register multiple MSMEs. There is no restriction on the number of MSMEs a person can register. However, each MSME must have a unique name and registration number.
No, it is not mandatory to have a business bank account for MSME registration. However, having a separate bank account for the business can help in better management of finances and can also help in availing various government schemes and benefits.
Yes, a business with multiple branches or locations can register as an MSME under a single registration. However, each branch or location should have a separate registration if it has a different Aadhaar or PAN card number. The registration of the main branch or head office would be considered the primary registration, and the other branches or locations would be considered additional locations.
Kankana Mukherjee is an engineer and has over 4.5 of experience in content writing. Combining the expertise in financial content writing achieved in her 2 years association with BankBazaar, and a knack for clear and engaging content, Kankana simplifies complex financial concepts and offers practical insights to help readers make informed decisions and achieve financial success.
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