MSME Registration Guide for Micro, Small and Medium Enterprise

MSMEs means Micro, Small and Medium Enterprise and SSI means Small Scale Industries. An enterprise/industry come within the ambit of MSMEs or SSIs when:

  • For doing business in manufacturing sector of India has invested less than INR 10 Cr. in plant and machinery.
  • In service sector where the investment is less than INR 5 Cr. in plant and machinery.

These MSMEs and SSIs are considered as backbone of any developing nation and they jointly contribute substantially to nation’s output in service & manufacturing sector, employments and earning from exports.

MSME Registration is necessary for the small and medium business in India. As seen in many surveys that the true economic growth of country is dependent on both large scale industries, Foreign Investments and small & medium Industries. India is a developing country where most of the economy is dependent on agriculture and small scale industries. So MSME and SSI registration can be considered as backbone of the development of India.

There is different culture and tradition of every state in India so the MSME registration certificates are issued by the concerned state government department so that one can avail the benefit under MSME Act. In 2015 the MSME or SSI registration has been changed to Udyog aadhar registration so now if anyone want to register a business in India then its required basic registration of the msme with the GST Registration and other applicable legal registrations.


While registering one has to know all the required fields to file application. Following are the categories of MSME registration:

Sl. No. Categories Investment limit for Manufacturing Sector Investment limit for Service Sector
1 Micro industries 25 lakhs 10 lakhs
2 Small industries 5 Crores 2 Crores
3 Medium industries 10 crores 5 crores


  • Collateral Free Credit from banks.
  • Reservation policies in production/manufacturing sector.
  • Becomes easy to get approvals, Licenses and registrations.
  • Special consideration on international trade fairs.
  • Octroi benefits.
  • Stamp Duty and Registration Fees Waiver.
  • Exemption under Direct Tax Laws.
  • subsidy for Bar Code registration.
  • Subsidy on NSIC Performance and Credit ratings.
  • Eligible for IPS subsidy.
  • Counter Guarantee from Government of India through CGSTI.
  • Protection against delay in payment.
  • Reduced rate of Interest from banks.
  • 15% CLCSS subsidy to purchase fully.
  • Waiver in Security Deposit in Government.
  • Concession in electricity bills.
  • Reimbursement of ISO Certification.
  • Excise Exemption Scheme.
  • Preference in procuring Government.
  • P15% weightage in price Preference.
  • 1% exemption on interest rate on OD.
  • 50% subsidy for patent registration.

MSME Registration Procedure

The registration is not compulsory for companies but it is recommended to have government backing up them.

The registration is completely online and requires following details:

  • Aadhaar No.
  • Name of the owner as mentioned on Aadhaar card.
  • Social Category like general, SC, ST & OBC and proof of SC,ST or OBC required if and when asked by appropriate authority.
  • Name of Enterprise which is conducting business.
  • Type of legal entity like partnership, HUF, Company etc.
  • Address of business including details of email address and mobile no.
  • Date of commencement of business.
  • If one has previously registered for MSME then details of previous registration to be provided.
  • Bank account details including Account no. and IFSC Code.
  • Major activity of business is manufacturing or service.
  • NIC (National Industrial Classification) code to be entered.
  • No. of people employed in business.
  • Investment in plant and machinery.
  • if required Details of DIC(District Industry Centre) nearest to business.

So ultimately MSME Registration is a very important part to start your own startup in the small sector. It’s give you lot of the government scheme benefits with the financial and other Supports.