Overview
The Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, introduced the Udyam Registration system to streamline the classification and recognition of MSMEs. This system, implemented on July 1, 2020 and it offers a range of benefits to support their growth and sustainability. By registering through the official Udyam portal, businesses can access various incentives and support mechanisms.
Who Can Register Under Udyam?
Any micro, small, or medium enterprise (MSME) that meets the investment and turnover criteria defined in the India Gazette notification dated June 26, 2020, can apply for Udyam Registration.
- Micro Enterprise – Investment up to ₹1 crore & turnover up to ₹5 crore
- Small Enterprise – Investment up to ₹10 crore & turnover up to ₹50 crore
- Medium Enterprise – Investment up to ₹50 crore & turnover up to ₹250 crore
Benefits of MSME Udyam Registration
Getting registered as an MSME under Udyam has multiple financial, operational, and growth-related benefits. From priority lending to government subsidies, registration ensures enterprises gain access to the right resources and support systems.
Key Benefits of MSME Registration:
- Tax & Fee Exemptions: Newly registered MSMEs and expanding businesses are exempted from stamp duty and registration fees. Eligible businesses can claim tax relief in their initial years.
- Government Subsidies: MSMEs can avail a 50% subsidy on barcode registration, a 50% subsidy on patent registration and financial aid for trademark registration, 75% of certification costs for national and international product standards, Product Certification Subsidy Up to ₹1.5 Lakh for national standards certification and Up to ₹2 Lakh for international certification.
- Financial Benefits from Banks: MSMEs get priority sector lending with reduced interest rates, Public sector banks are mandated to dedicate at least 60% of advances to MSMEs for better financial support, MSMEs can avail collateral-free loans under government-backed Credit Guarantee Trust Fund Scheme (CGTFS) in collaboration with SIDBI and they get benefit from 1% interest exemption on Overdraft (OD) loans, subject to individual bank policies.
- Business Incubation & Innovation Support: The Entrepreneurial & Managerial Development Scheme provides funding to commercialize new ideas, technologies, and products - 75% to 85% of project costs covered (Up to ₹6.25 Lakh per idea), ₹3.78 Lakh for infrastructure and training support for 10 ideas. It is open to individuals, micro, and small enterprises with near-commercialization stage ideas and Engineering & management colleges, research labs, and incubation centres provide mentorship and technical support to MSMEs.
- Operational & Growth Benefits: Fast-track licensing for businesses, reducing compliance burdens, exemption from Earnest Money Deposits (EMD) while bidding for government tenders, faster approvals for public procurement policies. As per Supreme Court mandates, buyers must pay MSMEs within 15 days of receiving goods/services and if payments exceed 45 days, buyers must pay interest at 3x RBI's lending rate.
- Utility & Infrastructure Benefits: MSMEs receive discounts on electricity tariffs, reducing operational costs and eligible MSMEs can get ISO certification fee reimbursements, enhancing their global competitiveness.
- Government Initiatives & Loan Schemes for MSMEs: MUDRA Loans for small businesses to fuel expansion & scaling, MSME Loan approval within 59 minutes under the government's fast-track scheme and collateral-free business loans, with partial repayment protection for lenders under Credit Guarantee Fund Scheme.
Documents Required for MSME Udyam Registration
The MSME Udyam Registration process is entirely online and paperless, simplifying the registration experience for enterprises. The registration is based on self-declaration, minimizing the need for extensive documentation. Below are the essential documents and details required for registration -
- Aadhar Card of the Authorised Signatory
- PAN card of the Firm
- GSTIN (Goods and Services Tax Identification Number)
- Basic Business Information – Business name, type of organization, and registered address.
- Bank Account Details – Account number and IFSC code for financial transactions.
- Enterprise Classification – Specify whether the business falls under Micro, Small, or Medium Enterprise (MSME) category.
- Investment & Turnover Details – Provide financial data as per business classification requirements.
Why Choose LauncherDesk for MSME Registration?
At LauncherDesk, we ensure a smooth, fast, and error-free MSME registration process so you can focus on growing your business. We handle all documentation, compliance checks, and submission for you. Our MSME specialists help choose the right category and maximize benefits.
Register on MSME Udyam with LauncherDesk today and embark on your journey towards growth and success.