MSME Registration

Udyog Aadhar – MSME/SSI Registration

Micro, Small and Medium Enterprises or simply MSME industries are considered to be the backbone of any nation’s economy. In India, MSME industries contribute about 45% of total industrial employment. 50% of total exports and 95% of all industrial units and over 6000 types of different products are manufactured by these industries. This makes MSME industries a crucial part of India’s legacy economic model. It is also the job creator and plays pivotal role in offering large scale employment as well as industrialization of backward and rural areas.

Getting MSME registration is not mandatory in India today, but small and medium enterprises that get the MSME registration can enjoy a variety of benefits. This includes less rate of interest, capital investment subsides, tax subsidies and other schemes and supports from the central government. Corporate Consult is the reliable and trusted legal service provider that can help you with your MSME registration process.

Procedure for MSME/SSI Registration

The procedure for applying and obtaining MSME/SSI registration is very simple and easy. If you are unable to apply or you are not aware about the procedure for MSME registration, then you may seek help of professionals like Corporate Consult. Below is the step by step guide for MSME registration

Apply for Provisional Registration

PRC will be assigned to the enterprise prior to offering the MSME registration card and it is provided without any field enquiry. This is basically the application based form and hence it needs to be applied precise as prescribed prior to starting the operations of your enterprise. Upon successful submission of the application, the provisional registration is offered without inspecting the unit physically. This is the fast procedure and it is offered so that start-ups can avail loans and other approvals prior to getting the MSME registration.

The provisional certificate is assigned for first five years and it is necessary for the enterprise to become operational within this five years. If it fails to become operational within the 5 year time, then a new application needs to be submitted.

Permanent SSI Registration

After the provisional certificate the enterprise needs to start the enterprise within 5 years and upon successful operations within 5 years the enterprise can apply for permanent certificate. The registration procedure is managed by Ministry of MSME. The permanent certificate would be allotted only upon meeting the following conditions.

  • Enterprise must meet get the administrative and statutory clearances
  • It must not violate any of the regulations and restrictions imposed
  • The total value of the machinery and plant needs to be within the prescribed limits
  • It must be proved that the enterprise is not owned, controlled or subsidiary of any other industry.

Corporate Consult is highly dedicated in helping enterprises to obtain the MSME registration for their enterprises and prevent all the hurdles that may arise during the registration procedure.

Types of MSME Registrations

Provisional MSME Registration

As mentioned, the first stage of MSME registration is the provisional certificate which is allotted to the enterprise during its pre investment period. With this provisional certificate they are eligible to

  • Get the accommodation facilities, land for the unit
  • Get all the essential NOCs from respective departments.
  • Get all the required clearances from regulatory bodies

The provisional certificate gives the enterprise required freedom to get loans, working capital and certification from bodies like pollution control board.

Permanent MSME Registration

The second and important type of MSME registration is the permanent registration certificate. This permanent type MSME registration gives the enterprises rights to function fully. MSME registration is not necessary but it gives the units with all supports and assistance for running the enterprise successfully.

Benefits of MSME/SSI Registration

There are a variety of benefits that enterprises in India can enjoy with MSME registration. This includes:

  • Cheaper loans – The interest rate on loans offered to MSME is set between 1% and 1.5% which is less compared to other traditional loans
  • Faster access to credits – Mudhra Loan Scheme and other credits can be accessed easily and faster and such loans need no collaterals
  • Faster approvals from government bodies – The enterprises that are registered under MSME usually get faster preferences for government certification and licenses
  • Rebates in tax – They enjoy a variety of income tax an capital tax subsidies
  • Access to tenders – Faster access to tenders that are open only for MSME can be accessed faster and easily


PRC comes with the validity of 5 years and if the enterprise fails to start functions within 5 years, then they need to re-apply for PRC again.
UThe total cost of plant and machinery must be within Rs. 25 Cr and manufacturing and Rs. 10 Cr for service units. The value of land and building is not counted as investment.
It is not mandatory to get MSME, but to enjoy all the benefits and schemes you must register your enterprise under MSME act. You first need to apply for PRC and begin your production or operations and then apply for permanent certificate for more benefits