MSME Registration

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Udyog Aadhaar Registration for MSMEs

Udyog Aadhaar or MSME registration is a certificate provided to micro, small, medium-sized businesses in India under the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED). Udyog Aadhaar used to be referred to as MSME registration earlier. Now, the process for obtaining MSME registration has been merged with Udyog Aadhaar registration and made online by the Government. The main objectives of the MSME department with respect to providing Udyog Aadhaar registration are as follows:

  • To enable the micro, small and medium enterprises to compete with international competition efficiently;
  • To promote the growth of micro, small and medium enterprises on a large scale to effectively tackle the widespread problems of unemployment and poverty;
  • To extend the benefits of various government scheme at one stop to the SSI units;
  • To safeguard SSI from financial harassment in the hands of big industries.

Udyog Aadhaar Eligibility

Not all businesses can obtain Udyog Aadhaar registration. Only those entity that are classified as a micro, small or medium enterprise as per the table below based on investment in plant and machinery is eligible for Udyog Aadhaar.

ClassificationManufacturing SectorService Sector
Micro EnterpriseUpto Rs. 25 lakhs investment in plant & machineryUpto Rs. 10 lakhs investment in equipment
Small EnterpriseUpto Rs.5 crore investment in plant & machineryUpto Rs.2 crores investment in equipment
Medium EnterpriseUpto Rs.10 crore investment in plant & machineryUpto Rs.5 crores investment in equipment

Benefits of Udyog Aadhaar

Udyog Aadhaar registration is provided  the Government and its simple and easy to obtain .After obtaining Udyog Aadhaar, a business can enjoy the following benefits:

  • The applicant will receive financial support for participating in foreign expos to showcase their products.
  • The applicant will also be eligible for government subsidies.
  • Registration would facilitate the hassle-free opening of current bank accounts in the name of the business.
  • It would also allow businesses to apply for government micro business loans and other such related beneficial schemes.
  • Easier sanction of bank loans at lower interest rates.

Documents Required for Udyog Aadhaar

The applicants personal Aadhaar is the main requirement for obtaining Udyog Aadhaar in case of a proprietorship. No further documents are required other than an email and a mobile number.

  • In case of proprietorship, the applicants Aadhaar must be used.
  • In case of a partnership, the partners Aadhaar can be used.
  • In the case of a company, the Directors Aadhaar can be used.
  • In the case of LLP, the Designated Partners Aadhaar can be used.

If an applicant or authorised signatory of a business does not have Aadhaar, then he/she must first apply for Aadhaar at an Aadhaar enrolment centre. Once, the Aadhaar is obtained, the Udyog Aadhaar process can be started.

Type of MSME Registrations


Provisional MSME Registration

The first stage of MSME registration is provisional which is given during the period before the establishment of the entity or the pre-investment period of the firm. At this point, the enterprise qualifies for:


  • Obtaining facilities for accommodation, land, etc.
  • Obtaining important approvals and NOCs
  • Obtaining clearances from regulatory bodies
    such as Pollution Control Board and Labour Regulations


The Provisional SSI Registration Certificate (PRC) enables small units to obtain term loans, and working capital from financial institutions and banks under priority sector lending.

Permanent MSME Registration

The second type of MSME registration is permanent. It is given to industrial units that are already functioning. Though the Act is not mandatory, it is immensely beneficial for firms to have the support of government.