Who can Apply for MSME Registration?

Micro Small and Medium Enterprises are well known for their contribution in the growth of the Indian economy. In order to promote them, the government offers them various benefits like easy loans, subsidiaries etc. But not all MSMEs are eligible to get these benefits. Only those MSMEs are eligible to get these benefits from the government who has MSME registration which is also known as Udyam Registration. Most startups and small businesses fall under the category of MSMEs but all of them don't get the benefits of government schemes because they do not have MSME registration. If you are a small business or a startup owner and willing to get the benefits of these government schemes and plans and apply for MSME Registration today. 

What is MSME Registration? 

The registration of MSMEs on the Udyam portal through which they were diagnosed as Micro Small and Medium enterprises is known as MSME Registration. This registration is also known as Udyam registration in India. In order to get this registration one needs to apply through the Udyam portal after providing all the necessary information. After the verification of the information you will get this registration called Udyam registration. 

Who is Eligible to Get MSME Registration in India? 

Any entity or character who's in the production, offerings associated or manufacturing related organizations and that lower than a specific level in amount, size, or strength. This criteria can gain this registration known as MSME Udyam Registration in India. Who can take this registration depends on the two things of the business. First is investment in the plant or machinery or equipment and second is annual turnover. Refer the table below for both of them: 

Types of Entities Who can Apply for MSME Registration in India 

Any sort of entity which falls below the eligibility criteria for the registration of MSME Udyam Registration can practice for MSME Registration in India through the Udyam portal of the government of India. Some of the key types of entities has been mentioned below: 

Private Limited Company 

• Separate legal entity 
• Limited liability
• Requires 2–200 shareholders.
• Needs 2–15 directors (one must be Indian).
• Companies Act, 2013 provides for its registration. 
• Name must end with "Private Limited."
• Must file annual returns and audits.
• Cannot issue public shares; private investments only.
• Ideal for startups and scalable businesses.

Public Limited Company 

• Separate legal entity 
• Limited liability
• Minimum seven shareholders
• No maximum limit on shareholders 
• At least 3 directors (one Indian).
• Companies Act, 2013 provides for its registration.
• Can issue public shares via IPOs.
• Name must end with "Limited."
• High compliance: annual returns, audits, SEBI rules.
• Ideal for large businesses raising public funds.

One Person Company 

• Registered under Companies Act, 2013.
• Name must end with "OPC Private Limited."
• No public share issuance allowed.
• Suitable for small businesses or sole proprietors.
• Lesser compliance compared to Pvt. Ltd. companies.

Section 8 Company 

• Eligible for tax benefits and exemptions.
• Ideal for NGOs and social enterprises.
• Nonprofit, fashioned for charitable or social functions.
• Income is reinvested, not distributed to individuals.
• Requires 2 contributors and 2 administrators.
• Registered underneath Companies Act, 2013.
• No "non-public limited" or "restricted" within the name.

Limited Liability Partnership Firms 

• Hybrid of partnership and private limited company.
• Limited liability for partners.
• Requires at least two partners
• No maximum limit on the partners
• LLP Act, 2008 provides for its registration
• Flexible structure with fewer compliance.
• Partners manage the business.
• Ideal for small as well as all type of medium businesses.

Partnership Firms

• Formed by 2+ individuals/entities.
• Partners share profits, losses as well as liabilities.
• Governed by a partnership deed.
• Simple setup, minimal compliance.
• No separate legal entity; personal liability.
• Suitable for businesses of small size. 

Sole Proprietorship Firms 

• Owned as well as run by a single individual.
• Simple to set up with minimal legal formalities.
• No separate felony entity
• Proprietor has complete management and legal responsibility.
• Income and losses are solely the owner’s duty.
• Ideal for small corporations or freelancers.

Registered Trusts 

• Formed for charitable, religious, or social purposes.
• Requires at least 2 trustees.
• Governed by a trust deed.
• Indian Trusts Act, 1882 provides regarding its registration. 
• Profits reinvested but not distributed.
• Ideal for NGOs and charitable organizations.

Registered Societies 

• Formed for charitable, social, or cultural purposes.
• Requires at least 7 members.
• Societies Registration Act, 1860 governs the same. 
• Must have a MOU i.e memorandum of association.
• Profits reinvested for objectives.
• Ideal for NGOs and cultural organizations.

Documents Required for the MSME Registration in India 

Some of the key documents which one desires to be there with her or him to be able to get MSME Registration certificates are given below:

• Aadhaar Card (for individuals or authorized signatory).
• PAN Card of the business or individual.
• Business Address Proof (e.g., rent agreement, electricity bill, etc.).
• Bank Account Details (passbook or canceled cheque).
• GST Registration (if applicable).
• Business Type Proof (e.g., partnership deed, incorporation certificate).
• Investment and Turnover Details (for classification as micro, small, or medium).

Process of Registering MSME Online in India 

Some of the key steps to register MSME online in India are given below: 

• Visit the Udyam Registration Portal.
• Sign up with Aadhaar or log in.
• Provide business name, type, PAN, and GST details.
• Enter investment and turnover information.
• Upload Aadhaar, PAN, address proof, and bank details.
• Submit and receive Udyam Number and Certificate.
• MSME is registered and eligible for benefits.

Conclusion

The Indian government promotes startups and small corporations in lots of methods and one such concept is MSME Registration that allows you to promote MSMEs. The government places many efforts but which will get blessings of those efforts the authorities MSMEs wish to get registered as MSME through MSME Udyam Registration. In case you fall below the criteria for MSME however you do not have MSME Registration certificate then you definitely can't get the advantage of the numerous schemes of the authorities which are specifically for the advertising and upliftment of the MSMEs in India.