Unlocking growth opportunities: Benefits of MSME registration in India

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy, accounting for a significant portion of employment and contributing to the country’s GDP. In recent years, the government of India has introduced several initiatives to promote the growth of MSMEs, including the registration of MSMEs under Udyam registration in India. In this article, we will discuss the benefits of MSME registration in India and the steps involved in the registration process.

What is MSME registration?

MSME or Udyam registration is a process by which businesses can register themselves as MSMEs with the government of India. This is a voluntary registration and can be done online through the government Udyam registration portal. In addition, it is done free of cost and requires minimum documentation.

Benefits of MSME registration in India

Access to government schemes and incentives

Registered MSMEs are eligible for various schemes and incentives offered by the government of India, including subsidies, tax benefits, and financial assistance to msmes. For example, the government has launched the Credit Guarantee Trust Fund Scheme for Micro and Small Enterprises (CGTSME), which provides collateral-free credit facilities to registered MSMEs, and so on.

Access to credit and capital

It can also help businesses access credit and capital from banks and financial institutions. Registered MSMEs are considered more creditworthy and are therefore more likely to receive loans and other forms of financial assistance.


Recognition and credibility

It provides businesses with recognition and credibility in the market. Registered MSMEs are perceived as more reliable and trustworthy by customers, suppliers, and other stakeholders.


Access to government procurement opportunities

Registered MSMEs are also eligible to participate in government procurement opportunities. The government of India has mandated that a certain percentage of procurement must be reserved for MSMEs, and registered MSMEs can take advantage of these opportunities.

Protection of intellectual property

It can also help businesses protect their intellectual property, including trademarks, patents, and copyrights. In addition, registered MSMEs are eligible for reimbursement of fees for filing of patents and trademarks.

Steps for MSME registration in India

The MSME registration process in India is simple and can be completed online through the Udyam registration portal- The steps for MSME registration is quick, paperless, and hassle-free, and can be done as per the following two categories:

  1. New start-ups or entrepreneurs who are not registered as MSME or the ones with Entrepreneurs Memorandum (EM-II), and,
  2. Those having registration as UAM (Udyog Aadhar Number) or already having registration as UAM via assisted filing.

Here we will help understand the MSME registration process for those already having registration under UAM. Let’s have a look at the process-

  1. Go to the Udyam registration portal and click on the button ‘For those having registration as UAM’ or ‘For those already having registration as UAM through assisted filing’ on the homepage.
  2. Enter your Udyog Aadhaar Number on the page that opens, and select the option to receive OTP on your mobile or email.
  3. Once you have received the OTP, enter it on the portal.
  4. Fill in your registration details on the MSME registration form and complete the Udyam registration process.


MSME registration is a simple and voluntary process that can provide businesses with several benefits, including access to government schemes and incentives, access to credit and capital, recognition and credibility, access to government procurement opportunities, and protection of intellectual property. Further, businesses that want to take advantage of these benefits should consider registering themselves as MSMEs with the government of India.

By registering as an MSME, businesses can unlock growth opportunities and contribute to the overall growth of the Indian economy. The government of India has taken several measures to support and promote the growth of MSMEs, and MSME registration is one of the key initiatives in this regard. With the registration process being simple and free, businesses should consider taking advantage of the benefits of MSME registration and positioning themselves for growth and success.

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