Report on entrepreneurship

1. PROCESS OF REGISTRATION
ON AN MSME

2. MSME ACT
Even if the company is in the manufacturing line or the service line, MSME
registration for both these industry sectors can be obtained as per the
MSME Act. The MSME registration is not yet made mandatory by the
Government of India but it is beneficial to get one’s business registered
under this because it provides a lot of benefits in terms of taxation, setting
up the business, credit facilities, loans etc.
The MSME Act became operational in 2006. It aims to promote, facilitate
and develop the competitiveness of micro, small and medium enterprises in
India.

3. What do you mean by MSME
Classification?
• Previously the existing MSME classification was based on the
criteria of investment in plant and machinery or equipment. So,
to enjoy the MSME benefits, the MSMEs have to limit their
investment to a lower limit, as mentioned below:
Existing MSME Classification
Sector Criteria Micro Small Medium
Manufact
uring
Investmen
t
< Rs.25
lakh
< Rs.5
crore
< Rs.10
crore
Services Investmen
t
< Rs.10
lakh
< Rs.2
crore
< Rs.5
crore

4. • These lower limits were killing the urge to grow as they were
unable to scale their businesses further. Also, there had been a
long-pending demand for the revision of MSME classification so
that they can further expand their operations while continuing to
avail the MSME benefits .
• Now under Atmanirbhar Bharat Abhiyan(ABA), the government
revised the MSME classification by inserting composite criteria
of both investment and annual turnover. Also, the distinction
between the manufacturing and the services sectors under the
MSME definition was removed. The following is the current
revised MSME classification, where the investment and annual
turnover are to be considered for deciding an MSME.

5. MSME Online Registration Process on
Udyam
• MSME registration is completely online. MSME online
registration is to be done in the government portal of
udyamregustratiom.gov.in The registration of MSMEs can be
done under the following two categories in the portal –
• For New Entrepreneurs who are not Registered yet as MSME
or those with EM-II and
• For those having registration as UAM and For those already
having registration as UAM through Assisted filing

6. Registration For Entrepreneurs Already
Having UAM
• For those already having registration as UAM, they need to click
the button “For those having registration as UAM” or “For those
already having registration as UAM through Assisted filing”
shown on the home page of the government portal. This will
open a page where Udyog Aadhaar Number is to be entered
and an OTP option should be selected.
• The options provided are to obtain OTP on mobile as filled in
UAM or obtain OTP on email as filled UAM. After choosing the
OTP Options, “Validate and Generate OTP” is to be clicked.
After entering OTP, registration details are to be filled on the
MSME registration form and Udyam registration will be
complete.

7. Details to be Mentioned in MSME
Application Form
• The entrepreneurs must fill in the following details on the MSME
application form:
• Aadhar number
• Name of entrepreneur as per Aadhar card
• Type of organisation (Proprietorship, partnership firm, private or
public limited company, limited liability partnership, co-operative
society, Hindu undivided family, self-help group, society or trust)

8. • Social category (General, OBC, SC/ST)
• Gender
• Name of enterprise
• Location of plant/unit
• Office address of the entreprise
• Date of commencement of business or incorporation or registration
of enterprise
• Bank account number and IFSC code
• Business activity of an enterprise
• NIC code of the primary activity
• Number of employees

9. MSME Registration Certificate
• After submitting the MSME registration form online, a message
of successful registration with a reference number will appear.
The Ministry of MSME will issue the Udyam Registration
certificate or MSME certificate to the email ID of the
entrepreneur after verification of the registration form submitted
on the portal.
• The Ministry will issue the MSME certificate after a few days
from the submission of the registration form. The MSME
registration certificate validity is for a lifetime. Thus, it requires
no renewal.

10. MSME Registration Fees
• The enterprises having UAM registration need to migrate to Udyam
Registration by 30/06/2022. If the entrepreneurs having UAM
registration did not migrate to Udyam Registration by 30/06/2022,
the UAM registration is invalid and they will not be able to receive the
benefits provided to the MSMEs. They will have to re-register
themselves for Udyam registration to obtain MSME benefits.
• MSME Helpline Number
• Helpline number for general queries related to MSME – 011-
23063288.
• Helpline number for Udyam Registration or Udyam Registration
Certificate related for administration queries -011-23063800