MSME Registration Online in India – Benefits, Process, and Eligibility

MSME stands for Micro Small Media Enterprises, MSME is recognized as one of the best ways to vibrant the declined economy. This is a collection of business enterprises that works on small scalability. Companies that are lying under MSME are categorized into 3 different stages Micro, Small, and medium. This status is provided to the company according to the rate of investment and the annual turnover of the company. The Government of India provides plenty of subsidies to promote MSME in India.

In this discussion, we’re going to discuss MSME registration and try to find out their benefits, process, and eligibility. If you’re willing to open an MSME then don’t try to skip this discussion.

msme registration online

What is MSME?

MSME (Micro, Small, and Medium enterprises) is a category of such types of enterprises that meet the standards of MSME. Businesses that lying under this scheme are categorized according to the investment criteria.

MSME is promoted by the government and businesses which are under MSME enjoy some unexpected benefits directly from the government.

Companies that fulfill the standards of MSME should have to follow the guidelines provided by the Government under the MSME scheme. In MSME, the companies are also divided into 3 different categories which can be recognized as their eligibility criteria.

Note: Many paroles think that MSME only attains those companies which are offering goods and products in the market and completely ignores the service sector companies. Well, it is a myth because whether the company is offering products or goods and offering services can join under the MSME scheme.

Eligibility criteria of MSME

There are 3 types of criteria under MSME, which means that all the companies which are working as MSME in India are divided into 3 types. See the content below to know the standards of those of MSME:

Classification under-investment employed

“M” for Micro:- The first “M” in MSME stands for Micro companies. Micro companies are the smallest type of enterprises available in India. Companies that attain the investment of fewer than 25 lakhs for manufacturing companies and less than 10 lakhs for service-providing companies are counted as Micro companies under MSME.

“S” for Small:- Companies that are manufacturing goods and products with an investment of less than 5 Crore and for service sector companies less than 2 crores are counted as the small companies under MSME.

“M” for Medium:- The last “M” in MSME is known for medium enterprises. This type of enterprise attains a comparatively greater investment amount as compared to small and micro companies of MSME. The manufacturing company which at this investment less than 10 crores which are 5 crores in the service sector company is counted as Medium rated company in MSME.

Classification under turnover

The rate of turnover is also an eligibility criterion for decoding the rank of the company in MSME.

Micro companies: If the company covers the annual turnover which is not greater than one crore and smaller than 5 crores then the company is recognized as Micro level company in MSME.

Small companies: For small companies, it is directed that annual turnover should not be more than 10 crores.

Medium companies: Companies that are covered under the annual turnover, not more than 50 crores are recognized as Medium level companies under MSME.

Benefits of MSME

MSME is promoted by the central government to enhance the level of business in the country. Companies that are listed under MSME enjoy some unexpected benefits which are listed below:

  • If a company is registered as MSME then the company will get an extra lease from Bank loans for 1%to1.5% lower interest rate.
  • Companies that are registered as MSME will be allowed to enjoy the benefits of MAT for 15 years which is only 10 years for other companies.
  • The government provides lots of concessions and leases to stabilize the MSME companies.
  • Plenty of tax benefits are also provided to MSME companies which improve the rate of profit and turnover of the company.

So, these are some major benefits that every MSME company will enjoy when registered. Now, let’s discuss how you can register your company as an MSME company. Also, check out HP Gas: How to Book HP Gas Cylinder Online and Offline?

How to Register an MSME Company?

To register your company as an MSME you just have to follow the steps which are listed below:

The registration in MSME will be conducted in 2 different ways. 1. For new entrepreneurs who’re not registered in MSME and 2. For those who attain UAM (Registered as UAM in MSME). Also, check out LIC Online Payment & How to Pay LIC Premium Online?

For New Entrepreneurs

  • Once you’ll visit the official website of MSME then you have to select the option “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II”. This option will be displayed on the screen.
  • Now, your new registration will start and you have entered your identification details like Aadhar card and PAN card.
  • Once you enter the details then you just have to click on the option of “Validate and Generate OTP Button”. Once you click on this option then the company will send an OTP to verify your documents. You just have to collect the OTP and type it into the blank column.
  • Now, you have selected the type of organization in which you want to register. Later, you have to verify your PAN card. After verifying your PAN card you have to enter your details.
  • After entering all the details you have to click “Submit and Get Final OTP”.

For UAM users

  • For UAM registered users, you have to click on the option of “For those having registration as UAM”.
  • Now, you’ll reach a page where your Udyog Aadhar Number is available. You just have to click on generate OTP for validation of OTP.
  • Once you verify the OTP then your registered details will start to display and by proceeding to this process your register will get completed.


So, here we discussed all the information related to MSME. I’m sure that now you’ll get proper knowledge about eligibility, benefits and the process of MSME Registration Online. So, just go and complete your registration and enjoy all the benefits of MSME now.

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