Register Your MSME Business Online-Udyog Aadhaar Registration for Convenient eCommerce Business
To promote entrepreneurship amongst citizens of India, the Government offers special benefits in the form of incentives and subsidies to small businesses. The banks also provide these businesses loans at low rates. To avail all these benefits, the small businesses must get themselves registered under MSME (Micro, Small and Medium Enterprises) Act. A business can benefit from registering under the MSME Act, such as tax benefits, cheaper loans, and access to many schemes introduced by the Government.
MSMEs have also impacted the growth of the eCommerce sector, with the constant support of the finance sector and various other sectors. The importance of MSMEs concerning eCommerce is the tech-driven process, online payments and logistics support at the local level.
The free MSME registration portal Udyam registration was launched for small businesses to register their business online. Apart from new businesses, already registered businesses can migrate to Udyam and re-register themselves. The Government has launched a portal for MSME registration free of cost, and it is a completely paperless transaction.
Definition of MSME
As per the MSMED Act, 2006, MSMEs comes under the following categories:
Manufacturing Sector as per Investment:
Micro Enterprises- Investment amount must not exceed Rs. 25 lakh.
Small Enterprises-Investment should be more than Rs. 5 crores and must not exceed Rs. 10 crores.
Medium Enterprises- The investment should be more than Rs. 5 crores and must not exceed Rs. 10 crores.
Service Sector MSME:
Micro Enterprises- Investment should not exceed Rs. 10 lakh.
Small Enterprises-Investment should be more than Rs. 10 lakh but should not exceed Rs. 2 crores.
Medium Enterprises-Investment must be more than Rs. 2 crores but should not exceed Rs. 5 crores.
The government in May 2020 added a new definition for MSMEs. It has added the principle that is ‘annual turnover’ in the definition with the ‘investment in plant and machinery.
Revised MSME Definition
Documents Required to Get MSME Registration
Valid Address proof of the business
Copies of the purchase bill as well as sale bill
Memorandum of Association or Articles of Association or Partnership Deed
Copies of the bills of Purchased Machinery
2 digit code of NIC
Details of investment
Details of Turnover
Primary business activity
Get MSME Registration Online
Businesses willing to avail of the benefits offered by the Government must register the company on the “Udyog Aadhar Memorandum (UAM) portal”. The registration is free and very simple for all users.
The steps to register MSME online is given below:
Visit the portal of UAM and fill the form of Aadhar Udyog.
If it is a first-time registration, simply click the ‘here’ menu to open the Udyog aadhar form.
Enter your Aadhaar number as well as your name. Then click on the menu‘ validate and generate OTP’.
After completion of the verification process, fill in the details of your PAN card.
In the end, you will again receive a verification code on your phone and submit the code to complete the form submission.
After the registration has been successfully completed, you will receive a “Thank You” Message along with the MSME Udyam registration number.
The approval of the application usually takes 2-3 days.
Once approved, you will receive your MSME certificate via mail. You can download the MSME certificate and also get the MSME certificate print. This Udyog aadhar print of the MSME certificate is a valid proof of your MSME registration.
Get MSME Registration Without Aadhar Card
If a person does not have an Adhar card, the registration can be filed by the DIC or MSME-DE for the business.
Whereas a person needs to furnish the below-mentioned documents as an alternative to aadhar card:
Enrolment copy of Aadhar
Enrolment request copy of aadhar
Voter Id or Driving License or PAN card or bank passbook, Employee Id.
MSME Registration Benefits
Some of the benefits of MSME registration are:
Very low-interest rates on the loans from the bank.
Tax rebates that are customised for MSMEs credit as Minimum Alternate Tax.
Easy and accessible credit for the MSMEs.
Reimbursement of the ISO certification
Special rebates as well as concessions on the industry set-ups and patents.
For an unpaid amount, an option for a one-time settlement fee.
Preference of the Government for MSMEs.
Easy registration of business in eCommerce sites like Flipkart and Amazon.
Electricity bill subsidies.
Provided credit guarantee schemes from the Government.
Subsidy on bar code registration
Support from the State Governments
Easy registration and promotion at the International Trade Fairs.
Schemes Launched by Government for the MSMEs
Udyog Aadhar Memorandum Scheme
Women Entrepreneurship Scheme
Zero Defect Zero Effect
Quality Management Standards and Technology tools
Grievance Monitoring System
Credit Linked Capital Subsidy Scheme
Validity of MSME Certificate
The MSME certificate will be valid till the business is operational.
The certificate is usually issued for a lifetime if it fulfils all the criteria.
If the businesses cross the turnover limit, they will get removed from the category of small business.
Elements of MSME Application Form
Name of the Business Person
Aadhar Number if issued.
Category as in General, OBC, SC/ST
Name of the Business
If Physically Handicapped or not.
Business Type such as Partnership Firm, Public/Private Ltd Company, Proprietorship, LLP, Cooperative Society, HUF, Self Help Trust or Group.
Address/ Location of Plant
Registered Office Address
Mobile Number and Email id
Commencement of Business date
Bank account number
2 digit NIC code
Number of all the employees in the firm
Amount of investment
The entire process of MSME registration and MSME certificate is free of cost. Often, the application for Udyog aadhar registration gets rejected for reasons like unpaid debts, default in loans, CIBIL score, incomplete documentation, etc. With this guide you can easily register you business in a hassle-free manner.