1. What is MSME?

The Micro, Small, and Medium Enterprises (MSMEs) are a critical component of India’s industrial ecosystem, contributing significantly to economic development, job creation, and exports. The Government of India recognizes their role in fostering growth and introduced the MSMED Act of 2006, which formalized their classification and provided a framework for supporting their development.

2. What are the Classification of MSME?

MSMEs are classified into three categories based on investment in plant and machinery or equipment and turnover limits:

1. Micro Enterprises: Investment does not exceed ₹1 crore, and turnover does not exceed ₹5 crores.
2. Small Enterprises: Investment does not exceed ₹10 crores, and turnover does not exceed ₹50 crores.
3. Medium Enterprises: Investment does not exceed ₹50 crores, and turnover does not exceed ₹250 crores.

3. What are the importance of MSMEs?

1. Economic Contribution: MSMEs account for around 40% of India’s total exports and play a vital role in supplying goods and services to larger industries.
2. Employment Generation: MSMEs have the potential to create numerous jobs, which is essential for a growing population. They support both rural and urban economies.
3. Industrial Development: By acting as ancillary units to large industries, MSMEs help in balanced regional development and reduce rural-urban migration.
4. Technology Adoption: Post-pandemic, the need for digitization has accelerated among MSMEs, with FinTech innovations enabling better access to finance, particularly through digital lending platforms.

4. What are the Govt. intiatives?

To support MSMEs, the Government of India has introduced several initiatives:

1. MSME Financing Schemes: Banks, including HDFC Bank, offer MSME loans with attractive interest rates to provide timely financial support.
2. Employment Generation Programs: Various programs are aimed at boosting employment through MSME growth, helping achieve the goal of making India a US$ 5 trillion economy.
3. Support for Exports: Many MSMEs contribute to India’s exports, with policy support and trade benefits available to enhance their global competitiveness.

5. What are the Challenges Facing MSME?

1. Access to Credit: Approximately 80% of MSMEs face difficulties in accessing formal credit. Many rely on informal sources, which restrict their growth potential.
2. Seasonal Demand: MSMEs, especially in the retail sector, experience high demand during festive seasons, requiring additional financing to capitalize on these periods.
3. Digitization: While the pandemic has accelerated digital adoption, there is still a need for more widespread use of FinTech solutions to improve efficiency and financial management.

How To Do MSME Registration? Step by Step.

We are on the official website of MSME registration show the website is which is udyam registration government.

After going to this website you will get the option of welcome to register here: For New Entrepreneurs who are not Registered Yet as MSME or those with EM-II.

on this options you have to select new Entrepreneur and here you will get to options firstly

In point number 1 you have the mention a Aadhaar number and then

In point number 2 you have to mention name of the Entrepreneur. note one thing here that your name in mentioned on your Aadhar will you mention on the complete name here after you will validate and generate OTP then your OTP will go on the number which is link to Aadhar and entering that OTP you we have to proceed.

In point number 3 You have to select types of organisation in the third point select a private limited company.
In point number 4 And select your pan card after mentioning the PAN card here you have to accept the terms & conditions and on pan validations you have to select Continue. After validated message will come here to your pan has been successfully verified and after that you have to continue.

It will ask you whatever have you filled ITR for previous year 2023 If Yes then you have to select yes or no so it is basically automatically here. it will be selected on the basis of your ITR. that the next question comes do you have GSTIN? If you have GST then you Mention yes if you Don’t have GSTIN then clarify then apply NO.

In point number 5 Next your put your name Entrepreneur name ,

In point number 6 your mobile numbers and

In point number 7 put email ID you have mention your name here

and, after that next you have to go down to the point number at.

In a point number 8 and in social category you have to select the general SC ST OBC whatever your category.

In point number 9 You can select your what is your gender.

In point number 10 then have to select that a specially abled if so do yes otherwise you will say no after that name of enterprises there.

In point number 11 Here you have to mention your business name which is called trade name also the name under which you are doing business you have to mention .

Now after that give give your name plant or unit name will come it is possible multiple plants within one business if you have plants/unit are different locations then you can also add multiple units here if you have plants at one place then you can add that name here and click on add unit.

After that you have to go

In point number 12 in point you have to select the name of the unit after that you have to enter the address .where your business is located so after entering the details of the plant/unit in the point number 12 you have entered the address in your office.

In point number 13 if your office address is same as the address of the plant/unit then you will enter the same address will repeat here if the official address head office is different then you can also put different address here.

If you enter the address then you have to add longitude and latitude here. if you select it then you will have to do it on full screen. its complete address will come so whatever you area is coming here then the district inside the place you can see it here and pin it there. It is not that you will exactly the same address here.

In point number 14 you have previously registered with EM-II or have UAM registration then you can see that selected here otherwise you will select not applicable

In point number 15 To understand a selected incorporation registration date then whenever you have incorporated here then you can put it here. if your business has started then yes if no then you don’t need to enter the date here if then did you start the business you will have to give the date.

In point number 16 Give the details of bank name IFSC code and Bank account number you will have to mention here now if your have the business has a current account then you can give the current account otherwise if you have a saving account then you can also give the saving account.

In the point number 17 here you have to mention your major activity of the unit whether it is a manufacturing unit it is a service unit. if it is a service then we will select the service here. (i)after that it is not trading or trading activity then non trading is our activity

In the point number 18 that what is the National Industrial NIC code for activities you have to mention it Choose Services. So whatever you mention here it’s complete details will come if you do not find it here on search option then you have another option to mentioned it manually if you have to if you have to search then manufacturing or a services. we have selected on services then all the codes service are there then we have select and two digit from here. Whatever service you provide will be available here after that you have add activity then this activity will be added here.

In point number 19 you have to give the number of employee how many Males how many Females and others. here you have given the total numbers of people work in your organisation in your firm.

In the point of number 20 how much investment you have made in this plant and machinery you have to mentioned here then WDV value as 31st March of the previous year you have to take this value on the basis of last year ITR so if you have filed ITR then you can get it from there if you have not file ITR then you can enter the value ‘0’ here on self declaration basis as to what is it its WDV if you are starting a new business than in case of new business then if you did not have any assets in the last last year then in that case you can also put zero here and after that whatever in exclusions if you put zero here to then the net investment in our plant and machinery is coming to zero because of that we have just started the business in the current year we did not have any in previous years if you have to mention the turnover.

In the point of 21 Then you will mention here in the turnover during the year of 22-23 now the same point here also if it is a new business and you have just started it then will not have any turnover in the previous year then you can mention zero here otherwise if there is turnover in your case then you have to mention the amount of turnover here.

In the point of 22 are you interested in getting Registrations on government e-market portal if you are interested in this then say yes

In the point of 23 if you are interested in getting registered on TReDS portal is say yes

In the point of 24 if you are you interested is getting registered on national career service portal so if you are interested then yes

In the point of 25 if you are you interested is getting registered on NSIC we can say yes

In the point of 26 if you are interested in Availing free in domain the and business email ID then if you can also say yes.

In the point of 27 if you are interested in District Industries Centre Say yes.

If you Don’t want all these you can also say no then there will be no problem.

you have to select on submit and get the final OTP here.

Select okay after that will get OTP and verification code after entering we will submit the final application here so OTP and verification after entering the code will submit the final application and click okay then this data will saved successfully and this will be our number generated by me.

when you click ok you will get the message thank you for visiting udyam registration portal and Your registration number has come here your NCS ID code here our login credentials will be shared through message. if you want to print this certificate then click on Print Certificate button.

You will see the option print certificate hair selected after that you will get the message regarding the enterprise registration number you will receive a just now what I told you to save if you don’t save them there is no problem that message must have come on your mobile here you will enter your enterprise registration number enter the mobile which you filled in the application and after that you will validate and generate OTP so you will click on validate OTP and login login all your details will be show here option will come to get print certificate you will select it to as soon as you click on it all our certificate has been generated here.

Conclusion:

MSMEs are poised to be a driving force in India’s ambition to become a global economic powerhouse. By addressing their challenges—particularly access to finance—and leveraging innovative technologies, MSMEs can enhance their contributions to India’s economic landscape.