MSME Certificate: Benefits, Eligibility & How to Apply Online

The MSME Certificate is an important requirement for Micro, Small, and Medium Enterprises (MSMEs) in India, enabling small businesses to access various government schemes, incentives, and business growth opportunities. Whether you're engaged in manufacturing or service-providing activities, obtaining this registration under the MSME Act can offer benefits such as easier access to business loans, subsidies, and support programs tailored for small businesses and small-scale industries (SSIs). As the backbone of India’s industrial sector, MSMEs play a crucial role in driving the economy, and registering for an MSME certificate ensures your enterprise is well-positioned to thrive. In this article, we’ll explore the benefits, eligibility criteria, and a step-by-step guide on how to apply for an MSME certificate online.

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What is an MSME Certificate?

An MSME Certificate is an official document issued by the Ministry of Micro, Small, and Medium Enterprises in India, granting formal recognition to businesses classified as MSME enterprises. This certification enables eligible businesses to access government incentives, financial assistance, and various growth-oriented schemes. It plays a crucial role in helping enterprises secure funding, enhance market credibility, and participate in public procurement and support programs. Once registered, business owners can also download MSME certificate online for official use in loan applications, tender submissions, and other compliance needs. 

Who is Eligible for an MSME Certificate?

Any business involved in manufacturing or providing services can apply for an MSME certificate, as long as it meets the investment and turnover limits defined by the Government of India. As per Budget 2025, the eligibility criteria have been revised to allow greater flexibility and growth. For MSMEs, investment limits increased by 2.5 times & turnover limits doubled:  

Get Detailed Information: MSME New Definition 2025: Revised Investment & Turnover Limits

What is the Importance of the MSME Certificate?

The MSME certificate is a crucial document that provides official recognition to Micro, Small, and Medium Enterprises under the Government of India’s MSME classification. It offers a wide range of benefits that help small businesses grow and thrive. These include:

• Easier access to finance through collateral-free loans and priority lending from banks.
• Eligibility for government schemes such as subsidies, credit guarantees, and infrastructure support.
• Tax benefits and concessions, including GST-related exemptions and reduced rates under certain programs.
• Faster approvals and registrations for licenses and government tenders.
• Enhanced market credibility, improving trust with suppliers, clients, and financial institutions.
• Support for intellectual property rights, with subsidies on patent and trademark registrations.

Benefits of Obtaining an MSME Certificate

Obtaining an MSME certificate offers a wide range of benefits, including a stronger market reputation, a distinctive edge in the marketplace, and intellectual property support. Let’s explore each benefit in more detail:

• Stronger Market Reputation: MSME certification enhances your business’s credibility, making it more trustworthy in the eyes of clients, suppliers, and partners. This improved reputation can lead to increased business opportunities and collaborations.
• Distinctive Edge in the Marketplace: Being officially recognised as an MSME sets your business apart from unregistered competitors. This distinction can help attract more customers and partners and open doors to exclusive opportunities.
• Easier and Priority Access to Finance: Registered MSMEs benefit from priority lending by banks and financial institutions, often enjoying lower interest rates, collateral-free loans, and faster loan approvals. This improves cash flow and supports business expansion.
• Intellectual Property Support: MSME-certified businesses are eligible for government subsidies on the costs of trademark and patent registrations, making it more affordable to protect and commercialise innovations.
• Eligibility for Government Incentives and Schemes: MSMEs can access a variety of government schemes, including credit guarantees, subsidies for technology upgrades, marketing assistance, and infrastructure development support. These incentives can reduce operational costs and foster growth.
• Tax Benefits and Exemptions: MSMEs may qualify for several tax advantages, such as reduced tax rates, GST exemptions, and benefits under startup-focused government programs, improving overall profitability.
• Facilitated Export Opportunities: Export-oriented MSMEs with certification may receive additional support, such as enhanced guarantee cover on export loans and easier access to export markets, boosting global competitiveness.

Learn more: Benefits of MSME registration in India

Types of Business Eligible for MSME Certificate

A wide range of business entities are eligible to obtain an MSME certificate in India, provided they meet the investment and turnover limits set by the government. Eligibility is not restricted by business structure as long as they fall within the prescribed criteria:

Eligible Business Structures:

• Proprietorships
• Partnership firms
• Limited Liability Partnerships (LLPs)
• Private Limited Companies
• One Person Companies (OPCs)
• Public Limited Companies
• Hindu Undivided Families (HUFs)
• Co-operative Societies
• Trusts
• Producer Companies

Eligible Business Activities:

• Manufacturing Enterprises: Businesses involved in the production or manufacturing of goods, whether from raw materials or by assembling components. This includes sectors such as textiles, food processing, engineering goods, electronics, and more.
• Service Enterprises: Entities providing services like IT, consultancy, healthcare, hospitality, legal and accounting services, education, wellness, and repair services.
• Trading Enterprises: Small trading firms, including wholesale and retail businesses, are also eligible under the latest MSME guidelines, provided they meet the investment and turnover criteria.

Documents Required to Obtain MSME Certificate

To ensure a smooth MSME registration process, applicants must gather specific documents like Aadhaar, PAN, address proof, etc in advance. These documents help verify the identity, legal status, and financial standing of the business, ensuring compliance with the MSME registration requirements. Below is the list of typical documents required to submit for getting the MSME certificate:

• Aadhaar Number: The Aadhaar card of the business owner is mandatory for identity and address verification.
• PAN Number: A valid PAN card is required to verify the applicant’s tax details and legal identity.
• Address Proof of Business: Documents such as utility bills, rent agreements, or property papers are required to establish the business location.
• Bank Account Number: Bank statements or a cancelled cheque help validate the business’s financial transactions.
• Business Activity Details: A brief description of the primary business activity is necessary to define the nature of operations.
• NIC 2-Digit Code: This code categorises the business as per the National Industrial Classification (NIC) system.
• Investment in Plant and Machinery/Equipment: Details of capital investment are required to determine the business's classification under the MSME criteria.
• Turnover Details: As per the new MSME definition, turnover details are crucial to establish whether the business qualifies as a micro, small, or medium enterprise.
• Partnership Deed (if applicable): In case of a partnership firm, the partnership deed must be submitted as legal proof of the entity’s formation.
• Sales and Purchase Bills: Copies of sales and purchase invoices serve as proof of ongoing business activities.
• Licences and Bills of Purchased Machinery: Any licences or bills related to the procurement of machinery must be furnished to support the business’s infrastructure claims.

Step-by-Step Procedure to Apply for MSME Certificate Online

To obtain an MSME certificate online, applicants must visit the Udyam Registration portal, register their business, fill in the necessary details and submit the application.

Let's get into the eight detailed steps to get an MSME registration certificate:

• Step 1: Visit the official Udyam Registration Portal.
• Step 2: On the homepage, select the option For new entrepreneurs who are not registered yet as MSME or those with EM-II.
• Step 3: Enter your Aadhaar number and name of the entrepreneur, then click on Validate and Generate OTP.
• Step 4: You will receive an OTP on the mobile number linked to your Aadhaar. Enter this OTP and click Validate.
• Step 5: After successful Aadhaar verification, proceed to the PAN verification page. Provide details such as:
• Type of Organisation
• PAN Number
• Whether you filed the previous year’s ITR
• Whether you possess a GSTIN
• Then click the Validate button.
• Step 6: The Udyam Registration Application Form will be displayed. Fill in all required fields, including:
• Entrepreneur’s Name
• Mobile Number and Email ID
• Enterprise Name
• Plant/Unit Location and Enterprise Addres
• Type of Organisation
• Bank Details
• Main Business Activity (Manufacturing/Service)
• NIC Code (2-digit)
• Number of Employees
• Step 7: Provide information related to the investment in plant and machinery/equipment, annual turnover, and tick the declaration checkbox. Click Submit to receive the final OTP.
• Step 8: Enter the final OTP and submit the form. Upon successful submission, your Udyam e-registration certificate will be sent to your registered email ID.

How to Track your MSME Certificate Registration Status?

Once you have applied for MSME certification, ensure to keep track of its status to know the progress of your MSME certificate application process. Use the following steps for this purpose:

• Visit the official Udyam Registration Portal to track your MSME certificate registration status.
• On the homepage, look for options such as Print Udyam Certificate or Track Application Status.
• Click on the relevant option to proceed to the status tracking page.
• Enter your Udyam Registration Number or application/acknowledgement number as prompted.
• Provide your registered mobile number or email ID to receive an OTP for verification, if required.
• Enter the OTP received on your registered mobile or email to authenticate your request.
• Click the Track, Submit, or similar button to view your application status.
• The portal will display your current registration status, such as:
• In Progress: Your application is under process
• Approved: Your Udyam Registration Certificate has been issued.
• If approved, you can also download or print your Udyam Registration Certificate directly from the portal.

Sample MSME Certificate

Here is the sample MSME Certificate PDF attached to help you understand the format and contents of the registration certificate:

What is the MSME/Udyog Aadhaar Certificate Renewal Process?

There is no renewal process for the MSME or Udyog Aadhaar certificate—it is a one-time registration that remains valid for the lifetime of the business, as long as it continues to meet the prescribed eligibility criteria. However, if there are any changes in your business details, you are required to update your MSME certificate accordingly.

How to Update Your MSME Certificate:

If you need to update your business information (like business name, address, contact details, etc.), follow these steps:

1. Visit the Official Udyam Registration Portal to begin.
2. Log In:Use your registered mobile number or email ID and Udyam Registration Number to access your account.
3. Fill in the Update Application Form:Enter the necessary corrections or updated business details.
4. Make a Nominal Online Payment:Pay the applicable fee for updating your MSME certificate.
5. Verification by Authorities:Once submitted, the relevant authority will verify your updated documents.
6. Certificate Updated:Upon successful verification, your corrected MSME certificate will be issued and can be downloaded from the portal.

Government Initiatives for MSME Sector Businesses in India

As per the 2024th report, India holds 6.30 crore enterprises, which is a major driving force of economic growth, employment, and exports. This spurs the government to prioritise the Micro, Small, and Medium Enterprises (MSME) sectors. Below, we have listed several major schemes and initiatives made to help the MSMEs:

• MSME Credit Card Scheme: A new credit card tailored for micro enterprises registered on the Udyam portal has been introduced, offering a credit limit of up to ₹5 lakh. The government aims to issue 10 lakh such cards in the first year, significantly improving working capital access for small businesses.
• Fund of Funds for Startups: To bolster the startup ecosystem, the government has expanded its support for Alternate Investment Funds (AIFs) with a new ₹10,000 crore Fund of Funds, building on an existing commitment of ₹91,000 crore. This initiative is designed to enhance capital availability and foster innovation-driven entrepreneurship
• Scheme for First-Time Entrepreneurs: A dedicated scheme has been launched to support 5 lakh first-time entrepreneurs from women, Scheduled Castes (SC), and Scheduled Tribes (ST) backgrounds. The scheme provides term loans of up to ₹2 crore over the next five years, promoting inclusive entrepreneurship and economic participation.
• Revised MSME Classification: The investment and turnover limits for MSME classification have been substantially increased - by 2.5 times and 2 times, respectively, allowing enterprises to scale operations without immediate reclassification concerns. This change encourages technological upgradation and greater competitiveness.
• Enhanced Credit Guarantee Cover: The credit guarantee cover for micro and small enterprises has been raised from ₹5 crore to ₹10 crore, unlocking an estimated ₹1.5 lakh crore in additional credit over the next five years. This measure is expected to further ease access to finance for MSMEs.
• PM Vishwakarma Scheme: Launched to support artisans and craftspeople, this scheme aims to improve the quality and market reach of traditional products and services, integrating artisans into domestic and global value chains. The scheme is fully funded by the government with an outlay of ₹13,000 crore for 2023-28.

Also read: UDYAM verification: How to Verify the Udyam Registration?

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More MSME Related Articles

• Who can apply for MSME registration
• Guide to the MSME Act in India
• MSME Mutual Credit Guarantee Scheme (MCGS)
• Section 43B(h) - New MSME 45 Days Payment Rule
• MSME Certificate Download

Frequently Asked Questions on MSME Certification

1. What is the validity of an MSME certificate?

The MSME (Udyam) certificate has lifetime validity, as long as the business meets the prescribed criteria.

2. Is MSME registration mandatory in India?

No, it's not mandatory, but highly recommended to access various government benefits and schemes.

3. Can existing businesses apply for an MSME certificate?

Yes, any eligible business can apply, regardless of its date of establishment.

4. What is an MSME certificate and what are its benefits?

An MSME certificate proves that a business is registered under the MSME category and qualifies for benefits like tax subsidies, low-interest loans, easier licenses, government tenders, and other incentives.

5. How does MSME registration boost business credibility?

It shows compliance with government norms, improving trust among lenders, buyers, and other stakeholders.

6. Are there penalties for not registering as an MSME?

No penalties apply, but unregistered businesses miss out on government support and financial incentives.

7. What are the compliance requirements for MSMEs?

Registered MSMEs must update financial and operational details on the Udyam portal as required.

8. What is the difference between MSME and Udyam registration?

There’s no difference—Udyam registration is the updated version of MSME registration under the new classification and digital process.

9. What are the eligibility criteria for MSME registration?

Eligibility is based on investment in plant and machinery/equipment and annual turnover. For instance, micro-enterprises must invest up to ₹1 crore and have turnover up to ₹5 crore.

10. Can a person register multiple MSMEs?

Yes, multiple MSMEs can be registered by the same person, but each must have a unique name and registration.

11. Can a business have multiple activities under one MSME registration?

Yes, a single MSME registration allows inclusion of multiple activities—manufacturing or service.

12. Is a business bank account required for MSME registration?

No, it’s not mandatory, but having a separate business account is advisable for financial management and availing schemes.

13. Can a business with multiple locations register under one MSME certificate?

Yes, a single MSME registration can cover all branches, provided they fall under the same PAN and Aadhaar.

14.How an MSME Certificate Helps You Get a Business Loan

Holding an MSME certificate enhances your business’s credibility with banks and financial institutions. It enables faster loan processing, access to government credit schemes like CGTMSE, and even better interest rates. MSMEs with valid registration are often prioritized for collateral-free loans and working capital assistance.

DINESH P Expert

Updated on: June 26th, 2025