How to Register Under MSME

How to Register Under MSME

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MSME stands for Micro Small and Medium Enterprises.  MSME is a government body that helps in promoting these industries throughout the country with the help of officially legalized Act. It authorizes different incentives provided to industries included under MSMED Act.

A Medium enterprise engaged in the manufacture or production of goods has to compulsorily register under the MSMED Act. For other Enterprises the registration is discretionary or optional.

Investment limits for Enterprises in Manufacture

Manufacturing Sector

Enterprises Investment in plant & machinery(rupee)
Micro Enterprises Till 25 lakh
Small Enterprises 25 lakh-5 cr.
Medium Enterprises 5cr-10cr

Investment limits for enterprises providing services

Service Sector
Enterprises Investment in Equipment’s (rupee)
Micro Enterprises Till 10 lakh
Small Enterprises 10 lakh-2 cr
Medium Enterprises 2cr -5 cr


Micro and Small Enterprises

Due to registration you can avail benefits, incentives or support given either by the Central or State Govt. Easy finance availability from Banks, without collateral requirement. All benefits provided by the Central government are-

  1. Protection against delay in payment from Buyers and right of interest on delayed payment
  2. Preference in procuring Government tenders,
  3. Concession in electricity, water bills
  4. Reservation policies to manufacturing / production sector enterprises–  The government reserves certain products to be exclusively manufactured by MSMEs.
  5. Time-bound resolution of disputes with Buyers through conciliation and arbitration
  6. Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE) – Under this scheme, banks offer finance of up to Rs. 100 lakh to MSMEs without any collateral security and/or third-party guarantee. Each bank has separate targets for financing of MSMEs under this scheme.
  7. Excise Exemption Scheme
  8. Exemption under Direct Tax Laws.
  9. Stamp duty and Octroi benefits,
  10. Statutory support such as reservation and the Interest on Delayed Payments Act.
  11. Subsidy on ISO Certifications
  12. Participation in Government Purchase registrations
  13. Registration with NSIC.
  14. Counter Guarantee from the government through CGSTI.
  15. Waiver in Earnest Money (Security Deposit ) in Government tenders
  16. 15% weightage in price Preference.
  17. Reduction in rate of Interest from banks- Small and medium enterprises get loans at rates lesser than the market rates, especially those in agriculture and located in rural areas.

States have their own package of facilities and incentives for small scale. You can avail that benefit by registering your undertaking registered under MSME Act.

Medium Enterprises
  1. easy finance availability from Banks,
  2. preference in procuring Government tenders, stamp duty, concession in electricity bills
  3. Timely receipt of payments from the buyers or debtors.
  4. Reservation policies to manufacturing / production sector enterprises
  5. Time-bound resolution of disputes with Buyers through conciliation and arbitration


There are two type of MSME registration

  1. Provisional Registration: Provision Registration has been granted when the unit has not commenced the business. It has been taken by the undertaking at its pre-investment period to enable it to take necessary step to apply loan, water, power or telephone connections, etc. SSI/MSME Registration is first provided as a Provisional Registration Certificate with a validity of 5 years.
  2. Permanent/Final Registration: Once, the unit has commenced production, a Permanent Registration Certificate is issued which is valid for lifetime of the entity. An existing and functioning industrial unit is eligible to apply for permanent registration without going into provisional registration process.


  1. What are the documents required for SSI/MSME Registration?

Documents required for SSI/MSME Registration are proof of address of business, proof of identity of the promoters.

  1. What is a Provisional Registration Certificate (PRC)?

A Provisional registration Certificate is given for the pre-operative period and it enables the units to obtain the financial credit from the banks.

  1. How much time does it take to get SSI/MSME Registration?

SSI/MSME Registration process is specific to the respective state. MSME Registration can typically be obtained in 10-15 working days.

  1. Who Can Apply for MSME Registration?

Any person, having valid Aadhaar Number, can apply for MSME Registration Online.

  1. Is there any difference between MSME, SSI & Udyog Aadhar?


SSI/ Micro Small and Medium Enterprises (MSME)/ Udyog Aadhaar Registration in India

To Get your MSME Registration, Please Click here


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