If you are the owner of a Micro, Small, or Medium Enterprise (MSME), then getting your business registered is of utmost importance. The Government of India has established a concrete definition of what businesses fall within the MSME sector. It also provides various subsidies and grants to MSMEs so they can flourish and contribute to the country’s economy. To that end, it is imperative that you register your business as an MSME if it qualifies. Continue reading to learn more about the process of how to register MSMEs online.
What is the classification for MSMEs?
The classification of MSMEs, and other guidelines, are governed by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. As per the Act, MSMEs are classified into two broad categories; the manufacturing sector and the service sector. Furthermore, within these categories, industries are divided into micro, small, and medium on the basis of the investment undertaken.
The exact demarcation is as follows:
1. MSMEs in the manufacturing sector:
Micro: Investment is not more than ₹ 25 lakh.
Small: Investment is more than ₹ 25 lakh but not more than ₹ 5 crore.
- Medium: Investment is more than ₹ 5 crore but does not exceed ₹ 10 crore.
2. MSMEs in the service sector:
Micro: Investment is not more than ₹ 10 lakh.
Small: Investment is more than ₹ 10 lakh but not more than ₹ 2 crore.
Medium: Investment is more than ₹ 2 crore but does not exceed ₹ 5 crore.
In addition, this definition was revised in 2020 to also include annual turnover as a classification criterion. As per the new definition:
Micro: Investments less than ₹ 1 crore and turnover less than ₹ 5 crore.
Small: Investments less than ₹ 10 crore and turnover less than ₹ 20 crore.
Medium: Investments less than ₹ 20 crore and turnover less than ₹ 100 crore.
What are the documents required for MSME registration?
To register your MSME online, you need to submit the following documents:
Aadhaar number
PAN number
Business address
Bank account number
Basic business activity
NIC 2-digit code
Details of investment
Details of turnover
Partnership deed
Sales and purchase bill copies
Copies of bills and licenses for purchased machinery
How to do MSME registration online?
To register your business, you have to follow the steps given below:
- Visit the UAM portal to fill out the registration form by clicking here.
If you are registering your MSME for the first time, click on the first link on the page.
Enter details like the Aadhaar number and name and click on ‘Validate and Generate OTP’.
After you finish the verification, fill in the PAN details. Select ‘No’ if you do not have a PAN card yet.
Fill the form having field numbers 5-24.
Once you do so, you will again receive an OTP on your phone. Enter the OTP and verification code to submit the form.
After you have registered, you will be shown a ‘Thank You’ message with a registration number. Keep the registration number Handy for future reference.
After you have submitted the registration form, it takes up to 2-3 days for the approval and registration process to get completed.
If your application gets approved, the registration will be completed, and you will receive an MSME certificate via email.
Now that you know how to register your MSME online do so at the earliest to access government grants and subsidies.
HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.
To learn more about the various products and services at HDFC Bank that can benefit your enterprise, you can check out the MyBusiness page here.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.