Udyam/MSME

Udyam / MSME Certificate Registration in India

India, a hugely populated country nestles major part of people who live with middle range financial power. To maintain the optimal state of economy, India’s Government promotes the course and growth of Micro, Small and Medium Enterprises (MSME) under the legal platform of MSMED Act 2006, an industrial sector that acts as core to supply nourishment for building country’s economic health.

Note: India’s MSME plays significant role in covering 45% of Total Industrial Employment, 50% of Total Exports and 95% of all Industrial Units and manufacturing more than 6000 types of products (as per msme.gov.in).

Based on its size, this industrial class is classified in three areas:

• Smallest is Micro Enterprise that needs investment of less than INR 25 lakh for manufacturing sector, whereas Micro Service Enterprises need investment of less than INR 10 lakh.
• Second one is Small Enterprise that needs investment of less than INR 5 crore in manufacturing sector, whereas in Small Service Sector, investment of INR 2 crore is needed.
• And the third is Medium Enterprise that needs investment of less than INR 10 crore in manufacturing sector, whereas Medium Service Sector, investment of INR 5 crore is needed.

MSME sector in India includes large types of businesses, such as, Proprietorships, Hindu Undivided Family, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, Limited Company, Producer Company, any Association of Persons, Co-Operative Societies or any other undertaking.

MSME Registration is not mandatory in India, but in order to avail a number of benefits, units of this industry should get themselves legally registered.

Documentation for MSME Registration

Businesses operating under MSME should prepare/have these documents for MSME Registration (Permanent Registration):

• Applicant’s PAN Details
• Applicant’s Contact Details, Mobile Number, Email, etc.
• Applicant’s Aadhaar Details
• Note: Aadhaar Authentication is mandatory for New Registration that has come in effect from August 21, 2020, where:
• Option is available for registrant to select YES or NO for Aadhaar Authentication
• A NEW registrant who does Aadhaar Authentication gets Registration Certificate within ONLY 3 working days’ time with no requirement of physical verification
• Applicants avoiding Aadhaar Authentication during GST Registration would be permitted only after physical verification of the place of business/document verification. The applicant may receive Notice from the Department
• Proof of Business Registration/Incorporation Certificate
• Promoters/Directors Details, such as Ids, Addresses and PP Photographs
• Address Proof of Place of Business
• Bank Account Statement/Cancelled Cheque
• Digital Signature
• Letter of Authorization/Board Resolution for Authorized Signatory