MSME Full Form: What is MSME?: The MSME sector contributes to 45% of India’s total industrial employment, 50% of India’s total exports, and 95% of all industrial units in the country, and more than 6000 types of products are manufactured in these industries ( (Note: Data may be changed).

When these industries grow, the economy of the country as a whole grows and flourishes. These industries/companies are also known as small-scale industries (SSI).

MSME Full Form

The full form of MSME is – “Micro, Small & Medium Enterprises”. In a developing country like India, Micro, Small & Medium Enterprises industries are the backbone of the economy.

Regardless of whether the company/industry is in the manufacturing line or the service line, registration for both these sectors can be obtained through the MSME Act ( Micro, Small & Medium Enterprises Act). This registration is not yet mandated by the government, but it is beneficial to register a single business under it, as it offers a lot of benefits in terms of taxation, setting up of business, credit facility, loans, etc.

MSME became operational in 2006. It was established to promote, facilitate and develop the competitiveness of micro, small and medium enterprises.

The existing MSME classification was based on the criteria for investment in plant and machinery or equipment. Therefore, to enjoy MSME benefits, MSMEs have to limit their investments to a lower limit.

The revision of MSME classification has been a long-standing demand so that they can further expand their functions to avail the benefits of MSMEs.

Now, under the Atmanirbhar Bharat Abhiyan (ABA), the government of India has revised the MSME classification incorporating the overall criteria of both investment and annual turnover. Also, the distinction between manufacturing and service sectors has been removed under the Micro, Small & Medium Enterprises definition. This removal will create a parallelism between the regions. Following is the revised MSME classification*, where both investment and annual turnover are considered to determine an MSME.

MSME Full Form: What is MSME?
MSME Full Form: What is MSME?

MSME Registration Process

The registration of MSME has to be done in the government portal of The registration of MSME can be done in the portal under the following two categories –

  1. For new entrepreneurs who are not yet registered as MSME and
  2. For those who are registered as EM-II or UAM and registering as EM-II or UAM through Assistant Registration.

1. For new entrepreneurs who are not yet registered as MSME

The new entrepreneurs need to click on the button “For new entrepreneurs not yet registered as MSME”. The new registration of MSME is done by entering the Aadhar card number in the following two ways-

  1. Registration with PAN card
  2. Registration without PAN card

A) Registration with PAN Card:

On the homepage of the government portal “For New Entrepreneurs who are not yet registered as MSMEs” button is clicked, it opens the page for registration, and for entering the Aadhar Number and Name of Entrepreneur says. After entering these details, click on the “Validate and Generate OTP Button”. Once, this button is clicked and the OTP is received and entered, the PAN verification page opens. If the entrepreneur has a PAN card, the portal gets the PAN details from the government database. And it automatically fills the details on the page. ITR details to be filled in by the entrepreneur.

Once the PAN details are entered, a message “Enterprise registration is already done through this PAN” and the entrepreneur is required to click on the “Validate PAN” button.

After the verification of PAN, the Udyam registration box will appear and the entrepreneurs will be required to fill in the personal details and details of the plant or industry.

After filling in the details, click on the “Submit & Get Final OTP” button, MSME is registered and a message of successful registration with a reference number will appear. After the verification of the registration, which may take a few days, the Industry Registration Registration is issued.

B) Registration without PAN Card:

The button “For New Entrepreneurs who are not yet registered as MSME” has to be clicked on the homepage of the Government Portal. It opens the page for registration and asks to enter the Aadhar number and name of an entrepreneur. After entering these details, click on the “Validate and Generate OTP Button”. Once, this button is clicked and the OTP is received and entered, the PAN verification page opens. If the entrepreneur does not have a PAN card, the title “Do you have PAN?” to be clicked, and then the “Next” button

After clicking on the “Next” button, the enterprise registration page opens where the entrepreneur should enter his/her personal details and plant or industry details.

After filling in the details, “Final Submit” is clicked and a thank you message will appear with the registration number.

2. Registration for Entrepreneurs already having EM-II or UAM:

Those who are already registered as EM-II or UAM should be shown at home “For registration as EM-II or UAM” or “For those registered as EM-II or UAM” The button needs to be clicked. Government Portal page. This will open a page where the Udyog Aadhaar Number is to be entered and a

The OTP option should be selected. The options provided are to receive OTP on mobile as entered in UAM or receive OTP on email. After selecting the OTP option, click on “Validate and Generate OTP”. After entering the OTP, registration details have to be filled and udyam registration will be completed.

Benefits of MSME Registration

Due to MSME registration, bank loan becomes cheaper as the interest rate is very low around ~1 to 1.5%. Much less than the interest on a regular loan.

It allowed the credit for Minimum Alternate Tax (MAT) to be carried forward to 15 years instead of 10 years.

Once the cost of getting a patent is recorded, or the cost of setting up an industry is reduced, a number of exemptions and concessions are available.

MSME registration helps in securing government tenders easily as the industry registration portal is integrated with government e-marketplace and various other state government portals which provide easy access to their market and e-tendering.

There is a one-time settlement fee for non-payment amounts of MSMEs.

Required information for MSME Registration

Aadhar card is the only document required for MSME registration. MSME registration is completely online and does not require any proof of documents. The PAN and GST linked details on investment and turnover of enterprises will be automatically captured by the Industry Registration Portal from the database of the Government. Industry Registration Portal is fully integrated with Income Tax and GSTIN System.

Note: PAN and GSTIN numbers are mandatory from 01.04.2021 for registration. Registration without PAN and GSTIN can now be done but must be updated with PAN number and GSTIN number to avoid suspension of registration.

The MSME schemes launched by the government are:

Technology and Quality Upgradation Scheme:

Registering in the scheme will help the Micro, Small & Medium Enterprises to use Energy Efficient Technologies (EET) in manufacturing units to reduce the cost of production and adopt a clean development mechanism.

Grievance Monitoring System:

It is beneficial to register under this scheme in terms of redressal of grievances of business owners. In this, business owners can check the status of their complaints, open them if they are not satisfied with the result.


This scheme helps innovators in the implementation of their new designs, ideas, or products. This scheme provides financial assistance for setting up ‘Business Incubators’. This scheme promotes new ideas, designs, products, etc.

Note: This post is only for informational purposes. Maybe Some data is changed by time or wrong. In this case, We are not responsible. So For better Knowledge of the MSME. Please Visit the Government Official Websites.

Also Read: MLA Full Form: All you need to Know About MLA


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