How To Do MSME Registration Online - A Guide

If you are the owner of a Micro, Small, or Medium Enterprise (MSME), then getting your business registered is of utmost importance. 

Micro, Small and Medium Enterprises (MSMEs) form an important part of India's business ecosystem. To provide eligible enterprises with a formal identity under the MSME framework, the Government of India provides Udyam Registration. 

It also provides various subsidies and grants to MSMEs so they can flourish and contribute to the country’s economy. That is why, it is important to register your business as an MSME if it qualifies. 

Continue reading to learn more about the process of how to register MSMEs online.

MSME registration is the government registration available to eligible micro, small and medium enterprises. The registration provides an enterprise with a permanent Udyam Registration Number and an online Udyam Registration Certificate.

The classification of an enterprise is based on two criteria:

1. Investment in plant and machinery or equipment

2. Annual turnover

The same classification criteria apply to both manufacturing and service enterprises.

The exact demarcation is as follows:

1. MSMEs in the manufacturing sector:

• Micro: Investment is not more than ₹ 25 lakh.
• Small: Investment is more than ₹ 25 lakh but not more than ₹ 5 crore.
• Medium: Investment is more than ₹ 5 crore but does not exceed ₹ 10 crore.
   

2. MSMEs in the service sector:

• Micro: Investment is not more than ₹ 10 lakh.
• Small: Investment is more than ₹ 10 lakh but not more than ₹ 2 crore.
• Medium: Investment is more than ₹ 2 crore but does not exceed ₹ 5 crore.
   

In addition, this definition was revised in 2020 to also include annual turnover as a classification criterion. As per the new definition:

• Micro: Investments less than ₹ 1 crore and turnover less than ₹ 5 crore.
• Small: Investments less than ₹ 10 crore and turnover less than ₹ 20 crore.
• Medium: Investments less than ₹ 20 crore and turnover less than  ₹ 100 crore.

Depending on the enterprise and its constitution, the applicant may need information and information such as:

• Aadhaar details of the proprietor, managing partner or authorised person

• PAN details

• GSTIN, where applicable 

• Business and enterprise details

• Address and contact details

• Bank account details

• Details of business activity 

• Investment and turnover information

• Details of the enterprise's constitution

Applicants should keep the relevant information available before beginning the registration process.

Click here to complete Udyam Registration online through the official Udyam Registration portal.

Step 1: Visit the Udyam Registration portal

Go to the official Udyam Registration website and select the option for new enterprise registration.

Step 2: Enter Aadhaar details

Provide the Aadhaar details of the proprietor, managing partner or authorised person, as applicable, and complete the required verification by clicking on ‘Validate and Generate OTP’. 

Step 3: Enter PAN details

After you finish the verification, fill in the PAN details. Select ‘No’ if you do not have a PAN card yet. The portal may also retrieve relevant information from government records.

Step 4: Provide enterprise details and fill the form with field numbers 5-24.

Enter the required information about the enterprise, such as:

• Name of the enterprise

• Type of organisation

• Business address

• Contact details

• Date of commencement of business

• Nature of business activity

• Bank account details
   

Step 5: Provide investment and turnover details

Enter the applicable investment and turnover information. Where data is available through government databases, relevant information may be retrieved or verified electronically.

Step 6: Submit the registration

Review the information provided and complete the required declaration and submission process.

• Once you do so, you will receive an OTP on your phone. Enter the OTP and verification code to submit the form.

• After you have registered, you will be shown a ‘Thank You’ message with a registration number. Keep the registration number Handy for future reference.

• After you have submitted the registration form, it takes up to 2-3 days for the approval and registration process to get completed.

• If your application gets approved, the registration will be completed, and you will receive an MSME certificate via email.

Running an MSME involves managing working capital, payments, financing and other day-to-day business requirements. HDFC Bank's MyBusiness platform brings together business banking solutions, digital tools and business-related information to support eligible enterprises.

Businesses can explore the available solutions based on their requirements, eligibility and applicable terms and conditions.

To learn more about the various products and services at HDFC Bank that can benefit your enterprise, you can check out the MyBusiness page here.

Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. 

HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.