India’s present economic stability and overall development are the result of industrial growth. Here, large-scale industries and MSMEs (micro, small, and medium enterprises) have contributed equally to lead India at the peak. When the large ones shaped up the top level, MSMEs brought development at the base level. From encouraging entrepreneurship to solving unemployment issues, MSMEs shine bright where large ones cannot reach. The grounded-up works of MSMEs thereby convinced people that anyone can start prestigious small businesses only by utilizing their expertise. MSME registration (Udyam Registration) gives an identity to such low-capital businesses where the workers earn with/without any training only by doing what they are good at.

What is MSME?

All the companies that manufacture any goods or provide any service on a small scale come under MSMEs. For example,

1. Pickle or bread making
2. Dairy or poultry farming
3. Candle or incense stick making
4. Glass or metal jewelry making
5. Soap or firework making
6. Furniture making
7. Beauty parlor
8. Tailor shop
9. Small boutique
10. Catering services

No matter whatever the company manufactures or whatever service it offers, the quantity of manufactured items will be limited, also, the service will be offered to small batches of people. The MSMEs do neither have the budget for large manufacturing units to produce items in bulk, nor do they have a huge workforce to serve many people at a time. The government of India introduced MSMEs through MSMED Act 2006.

What is MSME Registration and Certificate?

MSME registration is the process by successfully completing which a company obtains an e-certificate called an MSME certificate. This certificate legally validates the company's eligibility as an MSME so that it can easily avail of government-provided benefits.

Although MSME registration is not mandatory yet, companies with MSME registration numbers and certificates are entitled to several incentives, loans, and other schemes from the government of India. Hence, it is better to get one.

Eligibility Criteria for MSME Registration

As mentioned, MSME stands for micro, small, and medium enterprises. But first, let's understand what makes an enterprise micro, small, or medium.

The Ministry of MSME specified an amount for investment in plant & machinery and annual turnover as the determining factors in this classification. Initially, there were different limits for manufacturers and service providers. But, as per the revision made in 2020, that difference was waived - here is the revised classifications:-

	Investment in manufacturing plant & machinery	Annual turnover
Micro manufacturers & service providers	1 crore	5 crore
Small manufacturers & service providers	10 crore	50 crore
Medium manufacturers & service providers	50 crore	250 crore

Therefore, find out which category suits you the best, start the Udyam Registration, and be entitled to the MSME benefits.

Who Is Allowed to Apply for MSME Registration?

Individuals wishing to set up an enterprise with any of the criteria mentioned above can apply for MSME registration. The entities can be:

1. Association of persons
2. Cooperative societies
3. Hindu Undivided Family (HUF)
4. Limited Companies
5. Limited Liability Partnerships (LLPs)
6. One-Person Companies (OPCs)
7. Partnership Firms
8. Private Limited Companies
9. Producer companies
10. Proprietorship
11. Undertaking companies

If your venture does not have any of these entities; but meets the eligibility criteria (investment on machinery/plant and annual turnover), you can apply for MSME registration.

Documents Needed for MSME Registration

The following documents are needed at the time of MSME registration

1.PAN number of the enterprise

2.Aadhaar number of the

• Individual/s
• Partners for partnership firms
• Proprietor for proprietorship firm
• Karta for Hindu undivided family
• Authorized signatory for Limited Liability Partnership or a Cooperative Society or Society or Trust

3.GSTIN (mandatory for only those enterprises that must hold GSTIN as per the GST Law)

When Should You Apply for MSME Registration?

It is good to opt for MSME registration right after the establishment of the enterprise. Delaying it will otherwise prevent the entrepreneurs from availing themselves of the special facilities entitled to MSMEs. Therefore, do it on priority.

How to Apply for MSME Registration?

Complete MSME Udyam registration by following these steps

1. Visit https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
2. Click on “For new entrepreneurs who are not registered yet as MSME or those with EM-II”
3. Enter Aadhaar Number
4. Enter the name of the entrepreneur
5. Click on “Validate & Generate OTP”
6. Enter OTP and click on “Validate”
7. Enter “Type of organization”
8. Enter PAN number
9. Click on validate
10. Check the boxes if you have filed an ITR in the previous year and if you have GST
11. Enter the details of the entrepreneur and enterprise (name, mobile number, enterprise name, location of the plant and enterprise, status, bank account details, unit activity, NIC, and number of employees)
12. Enter the investment for machinery/plant and annual turnover
13. Check the declaration
14. Enter the OTP
15. Click on Submit

After completing this, a permanent registration number will be given. Also, a Udyam e-Registration certificate will automatically be issued within 2-4 days of the form submission and entrepreneurs can take a print out of it.

Entrepreneurs who already have Udyam registration and want to re-register and migrate need to go to the portal, and then click on "For those already having registration as UAM” or “For those already having registration as UAM through Assisted filling," and follow the steps.

MSME Registration Status

Entrepreneurs can check the MSME registration status by clicking on the portal, followed by "print/verify" option. Thereafter, they need to opt for “Verify Udyam Registration Number” and enter the reference number to get an update on the registration status.

MSME Certificate Download

To download MSME registration certificate:

1. Visit Udyam portal
2. Click “Print/verify” and select “Print Udyam Certificate”
3. Enter registration number and mobile number
4. Select OTP option
5. Enter OTP
6. Validate and login to the account
7. Access the account and take a printout of the certificate

This certificate contains a dynamic QR - as soon as it is scanned, the Udyam portal and enterprise details become visible.

Cost of MSME Registration

MSME Registration is totally free; therefore, there is no need to pay anything to anyone. Also, the registration is paperless and based on self-declaration. Hence, there is no need to submit documents or depend on anyone for this process.

Renewal of MSME registration

Once someone obtains MSME registration, there is no need to renew it because the Udyam registration is permanent.

Benefits of MSME registration

Udyam Registration comes with several compelling benefits to enterprises of different sizes – here are a few advantages of MSME registration:

• Easy access to government schemes, tenders, programs, credits, and more for further financial support
• Udyam portal integrates with income tax portal, GST portal, etc., so that MSMEs can manage their operations efficiently
• Registration makes MSMEs eligible for priority sector lending from banks in order to get easy credit facilities at simpler terms
• Registration brings extended credit, additional long-term tax benefits, lower interest rates on bank loans, as well as overdraft facilities
• Rebates on patents, electric bills, and other concessions, reimbursements, and many more subsidies

So, the government of India supports MSMEs in every possible way and ensures their expansion without any financial barrier. Just like this, PayG payment gateway also helps entrepreneurs of India to transact with their customers easily and securely. With PayG, customers can pay using UPI, cards, net-banking, and wallets to the entrepreneurs – whether they have cash or not; hence, there will be no barrier to seamless transaction.