What is MSME Certificate in India?

An MSME Certificate means an official document. The Indian Government issues it. The MSME stands for Micro, Small, and Medium Enterprises. This certificate is helpful for small and medium-sized businesses. It helps with collateral-free loans, several government benefits, lower interest rates, and more. You can simply apply and download it online. In this blog, you will get guidance about an MSME registration, and more.

What is an MSME Certificate or Registration?

An MSME Certificate is an official document for businesses in India. It is issued by the Ministry of Micro, Small, and Medium Enterprises in India. This is also known as an Udyam Registration Certificate in India. The registration applies to small and medium-scale businesses in India. It simplifies the registration process for these businesses.

Businesses get several government benefits and growth opportunities. They also get financial assistance and growth-oriented schemes. It secures funds and participates in public procurement and support programs. This also helps to increase market credibility. You can apply for an MSME registration from the official Udyam registration portal. You can also download MSME certificate. It takes place after completing the registration. It is suitable for loan applications, tender submissions, and other compliance needs.

Who can apply for an MSME certificate in India?

Businesses involved in manufacturing or providing services can apply for an MSME certificate. They can apply it when they meet the investment and turnover limits.

The following entities that can apply for an MSME Registration in India:

1. Trusts
2. Individuals, entrepreneurs, startups, and business owners
3. Sole proprietorship
4. Limited Liability Partnerships (LLPs)
5. One Person Companies (OPCs)
6. Private and public limited companies
7. Self Help Groups (SHGs)
8. Hindu Undivided Families (HUFs)
1. Partnership firm
10. Co-operative societies

The Investment and Turnover Limit for MSME Registration in India

Here is the table that outlines the investment and turnover limit as per the government:

Documents Required to Get MSME Certificate in India

Listed below are the key documents:

a)      Aadhaar Number

b)      PAN Number

c)      Address Proof of Business such as utility bills, rent agreements, or property papers

d)      Bank Account Number

e)      Business Activity Details

f)       National Industrial Classification (NIC) 2-Digit Code

g)      Investment in Plant and Machinery or Equipment

h)      Details of Turnover

i)       Partnership deed (If required)

j)       Sales and Purchase Bills

k)      Licenses and Bills of Purchased Machinery

h) GST Registration (If Required)

Thus, the GST registration is not compulsory for MSME registration. It can be applicable if business activities comes under the GST registration criteria. In such a case, they need to enter their GSTIN (Goods and Services Tax Identification Number) to get it.

How to Apply for an MSME Certificate in India?

Listed below are the steps to apply for an MSME certificate in India:

Step 1: Visit the official portal

You need to go to the official Udyam Registration Portal to apply for it.

Step 2: New Entrepreneurs option

Next, you need to select the option "For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” . You will find this option on the homepage.

Step 3: Aadhaar and OTP

This step allows you to enter your Aadhaar number and the name of the entrepreneur. Then, you need to click on the "Validate and Generate OTP" option.

Step 4: Validation of the OTP

You will get an OTP (One-time password) on your mobile number. This number should be linked to your Aadhaar. Next, enter the OTP.

Step 5: PAN Verification        

Once a successful Aadhaar verification, you must go to the PAN verification page. Here you need to give details like:

a) Type of Organization

b) PAN Number

c) ITR Details

d) GSTIN Status, etc.

Then, you must click on the "Validate" option.

Step 6: Form Filling

In this step, you need to fill out the Udyam Registration Application Form. The required details can include:

a) Enterprise Name

b) Name of the Entrepreneurs

c) Registered Mobile Number

d) Email Id

e) Type of Organization

f) Plant or Unit Location and Enterprise Address

g) Bank Details

h) Main Business Activity like Manufacturing or Service

i) NIC Code (2-digit)

j) Number of Employees, etc.

Step 7: Investment/Turnover and Submit

You must give information about investment in plant and machinery/equipment. It also includes annual turnover. Put a tick mark on the declaration checkbox. Then, you need to click on submit to get the final OTP.

Step 8: Final OTP and Registration Certificate

In the final step, you must enter the final OTP (One-time password) and submit the form. Once submitted, you will get the MSME certificate. This is also known as Udyam e-registration certificate. You will get it on your registered email ID.

Steps for MSME Certificate Download

Here are the steps for MSME Certificate Download:

Step 1

You must go to the official Udyam registration portal to start the process.

Step 2

Next, click on the "Print/Verify" option. Then, select the "Print Udyam Certificate" option.

Step 3

You must enter the "Udyam Registration Number" and "Mobile number". You must also choose the OTP option. Then, tap on the "Validate & Generate OTP" option.

Step 4

This step allows you to put the OTP which you received on the mobile number or email ID. Then, you must click on the "Validate OTP and Login" option

Step 5

You can take a printout of the Udyam or MSME registration certificate after a successful logged in. This is the final step to download MSME Certificate.

How to Check the Status of MSME Registration?

Here are the steps to check the status of MSME registration:

Step 1

As a user, you need to visit the official Udyam Registration portal.

Step 2

Next, on the homepage, you must click on the "Print/Verify" option. Then, click on the "Verify Udyam Registration Number".

Step 3

This step requires you to enter your 19-digit Udyam Registration Number (URN). Then enter the captcha code and click on the "Verify" button.

Step 4

Once you entered the required details, you will see your MSME registration status. The status will show as approved or pending. This step also allows you to download the certificate.

What is the fee for MSME Registration in India?

The MSME or Udyam registration is free of cost. You can apply for this certificate from the official Udyam registration portal. This portal is a government portal for doing registration. An MSME registration is completely an online process.

Conclusion

MSME certificate is an official document for small and medium sized businesses. This certificate is also called Udyam Registration. You can apply for it from the official government portal. The name of the government website is Udyam registration portal. This helps businesses to get several benefits. It includes financial assistance, tax exemptions, government schemes, and so on. If you still have a query about it, contact Online Legal India.

FAQ

Q1. What is MSME Certificate?

An MSME Certificate is also known as Udyam Registration Certificate. It is an official document for businesses in India. The business recognized as Micro, Small, or Medium Enterprises. This helps businesses to get various benefits. It includes government schemes, tax benefits, procurement, and more.

Q2. Is the MSME Certificate valid for a Lifetime in India?

Yes, MSME Certificate is valid for a lifetime in India. This is also known as Udyam registration. There is no need of renewal. It happens if your business meets the criteria of Micro, Small, or Medium enterprise. This means investment and turnover limits.

Q3. Are there is any fees for MSME Registration in India?

No, there are no fees for MSME registration in India. It is completely free of cost. You can easily register it from the official Udyam registration portal.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.