MSME CERTIFICATE
What is an MSME( Udyam) Certificate and why is it important?
An MSME (Udyam) Certificate is an official document issued by the Ministry of Micro, Small, and Medium Enterprises (Government of India) to businesses that have registered as Micro, Small, or Medium Enterprises under the Udyam Registration portal. It includes a unique Udyam Registration Number (URN) and contains essential business details such as classification, type of enterprise, PAN, GST, and contact information.
The certificate serves as a legal identity proof of being recognized as an MSME and is required to avail various government benefits, financial schemes, and support programs specifically designed for MSMEs. These include priority lending, collateral-free loans, subsidies, exemptions, concession on electricity bills, and eligibility to participate in government tenders with relaxed norms.
Who is eligible to gain an MSME Certificate in India?
Eligibility for carrying an MSME Certificate is determined by the investment in factory & ministry or outfit and the periodic development of the business. The bracket is as follows:
Micro Enterprise Investment ≤ ₹ 1 crore and Development ≤ ₹ 5 crore.
Small Enterprise Investment ≤ ₹ 10 crore and Development ≤ ₹ 50 crore.
Medium Enterprise Investment ≤ ₹ 50 crore and Development ≤ ₹ 250 crore.
Any business reality — whether procurement, cooperation establishment, private limited company, LLP, united society, trust, or others — that meets these criteria is eligible. still, the enterprise must have a valid visage and GSTIN( except for possessors innon-GST orders).
What are the benefits of having an MSME Certificate?
The MSME Certificate enables businesses to access a wide range of financial, legal, and operational benefits provided by the government. Some key benefits include:
- Collateral-Free Loans under the CGTMSE scheme.
- Interest Rate Subsidies on bank loans.
- Protection against Delayed Payments from buyers (legal support and interest on delayed payments).
- Eligibility for Government Tenders with exemptions from earnest money deposit (EMD).
- Credit Linked Capital Subsidy Scheme for technology upgrades.
- Stamp Duty & Registration Fee Exemption in some states.
- Concessions on electricity bills and ISO certification charges.
- Priority Sector Lending (PSL) under RBI guidelines.
- Easier access to licenses, approvals, and registrations under relaxed norms.
These incentives are aimed at boosting the competitiveness and sustainability of MSMEs in the Indian economy.
Is it obligatory to have a visage and GST number to get an MSME Certificate?
Yes, as per the latest guidelines by the Ministry of MSME, having a PAN and GST number is mandatory for registration under the Udyam system for all businesses other than proprietorships.
For proprietorships, the PAN of the individual is used, and GST is not compulsory unless the business is liable to be registered under GST laws.
The Udyam portal is integrated with the Income Tax and GST networks, so the data such as investment and turnover is automatically verified from those databases. This enhances transparency and accuracy in classification and eligibility determination.
Can I contemporize or correct information on my being MSME Certificate?
Yes, enterprises can update or modify their MSME (Udyam) Certificate at any time through the Udyam portal. If there are changes in business name, address, contact details, classification (due to increased turnover or investment), or any other information, the entrepreneur should log in to the portal and choose the “Update Udyam Registration” option.
Financial details must be updated annually after the end of each financial year, and failure to do so may result in incorrect classification or ineligibility for MSME-specific benefits.
PAN and GST details, once verified, cannot be changed, as they are linked permanently to the registration.
How can I download or publish my MSME( Udyam) Certificate?
To download or print your Udyam Certificate, follow these steps:
- Visit the official Udyam Registration portal.
- Click on “Print/Download” Udyam Certificate under the “Print/Verify” section.
- Enter your Udyam Registration Number (URN) and choose OTP verification via mobile or email.
- Once verified, your certificate will be displayed.
- You can then download or print the certificate in PDF format.
This service is available 24/7 and is free of cost. It is important to keep a copy of the certificate for availing benefits and submitting it to banks or government authorities when required.
