What is MSME Registration in India?

What is MSME Registration
Swarit Advisors
| Updated: Jul 13, 2018 | Category: MSME

MSME is a short form of micro small medium enterprises and it is a revolutionary way of manufacturing and selling a variety of products by anyone in India. These small industries are supported as well as promoted by the government of India.

What is the Effect of MSMEs on India’s Economic growth?

A various number of surveys have shown that the true growth of the economy of our country is not only recognized by the large-scale industries, the foreign nationals’ investment and investors but by also the small and medium-scale industries. These also include the various cottage industries that are operating in India.

By looking towards the stage of development of our country India who has its economy mostly dependent over the agriculture and other small-scale industries. For these entities to run efficiently and with a push from government, MSME Registration and SSI Registration could prove to be a backbone for the growth of the economy.

We often see in India as each state here has its own tradition and its own culture that they follow and become eminent in that sort of an Industry. There’s no doubt about the fact that India has its own huge stock of natural resources and that too with an intensity variation in the climate. In that case, working and promoting such kind of industries on a very big scale is fairly common among the traders.

What is MSME Registration Certificate?

Ultimately the MSME Registration certificate is issued by the respective state governments departments, in order to avail for the benefits under the MSME act. Now from the year 2015 onwards, the government of India has modified the MSME and SSI Registration. It has been changed into the new name called “Udyog Aadhaar” which means support to industry, which describes the purpose of the act. So it could be rather called Udyog Aadhaar Registration and this sums up all the micro to medium-sized industries.

Why is MSME Registration so Important for the Small Businesses?

The MSME Registration is really very important for the development and flourishing of small businesses. It gives the transparency as well as accountability of the above-mentioned types of the industries. A unique advantage of the MSME Registration is the fact that it authorizes many of the incentives to these small businesses including the MSMED act. In order to get benefits under the act, MSME Registration is mandatory. Apart from these small enterprises some of the firms or shop Registration in public or private limited companies or in limited liability partnerships are also fully eligible for application for MSME Registration to avail the benefits under the MSME act.

Classification under MSME Registration

Before you think of applying for the MSME Registration procedure in India, you must know the requisites that divide the MSME into categories.

  • The micro industry[1] – here your investment should not exceed Rs 25 lakhs. However, in case, if it is a manufacturing company or service sector, it’s supposed to be about Rs 10 lakhs.
  • The small industries – in this category your investment shouldn’t exceed Rs 5 crores. Similarly again, in case of manufacturing or service sector, the limit is Rs 2 crores.
  • Coming to the last category of medium industries –when applying for this category your investment must not exceed Rs10 crores however if it is related with the manufacturing company or to the service sector, its limit is 5 crores.

If you have any queries related to MSME Registration or any legal online registrations then you may call our experts at Swarit Advisors. We provide expert consultation and a step-by-step procedure to guide you.


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