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 MSME stands for Micro, Small, and Medium Enterprises. These are business enterprises categorized based on their investment and turnover criteria, namely: 

(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;

(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and

(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

Anyone who plans to incorporate a micro, small or medium enterprise may file Udyam Registration online on Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.

MSME and Udyam Registration can be obtained by any type of business entity or individual, proprietorship, HUF, Partnership firms, One Person Company, Limited Liability partnership, Private and Public Company, producer Company, any association of persons, Co-operative societies, or any other undertaking can obtain MSME.

1. The bank loans become cheaper as the interest rate is very low. Much lower than interest on regular loans.
2. MSME loan (Collateral Free) upto 2 Crores under. 
3. It also allowed credit of MAT to be carried forward upto 15 years instead of 10 years.
4. Subsidiary on Patent Registration/ Trademark Registration.
5. Overdraft Interest rate Exemption of 1% on the overdraft.
6. Industrial Promotion Subsidiary.
7. Protection against payments (Delayed payments).
8. MSME Registered entity are entitled to concession in Electricity Bills.
9. ISO Certificate Charges Reimbursement.

1. The registration form will be as provided in the Udyam Registration portal.
2. There will be no fee for filing Udyam Registration.
3. Aadhaar number shall be required for Udyam Registration.
4. The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
5. In case of a Company or a LLP or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with Aadhaar number of authorised signatory.