Common Errors to Spot Before in an MSME Registration Form

The Government of India streamlined the concept of Business registration for all Small, Micro, and Medium enterprises, through the MSME Registration Form under the MSME Act, of 2006. To simply motivate entrepreneurs to excel in their business, MSME registration was made a completely online and paperless process. Apart from the online utility for registration, a self-declaration policy for the registration was also added to expedite the process of MSME creation entirely by the entrepreneur himself.

With the requirement of simple disclosures from the entrepreneur, a Certificate of Registration under MSME is now digitally granted to the applicant. In due course of filing the MSME Registration Form, sometimes due to filing of incorrect or incomplete information, the registration of the entity is canceled or objected to.

In severe cases, some penal provisions are also held against the enterprise or entrepreneurs for suppressing or entering wrong information while filing their registration application. In this article, you will get to know more about what errors you should ignore while Filing the MSME Registration form online for your business.

Registration of MSME Online 

The Udyam/MSME Registration can be applied on the Udyam Portal. The application for certification under MSME guidelines is freely accessible to all. Now, there is no specific requirement from the government to obtain GST registration to apply for MSME registration of business.

MSME Registration was earlier required by the Manufacturing and Service units to claim benefits under different credit schemes of the government. The registration is now open for all Retail, Wholesale, and Small Trading units other than those involved in the Vehicles Selling business.

MSME Registration can now be obtained digitally by newly set up enterprises/enterprises those holding EM -II and those already registered with the Udyam Portal holding UAM.

Errors Filing MSME Registration Form Online 

Confusion in Applicant Name as Entity Name / Brand Name or Promoter Name:

Entering the ”Name” of the applicant/entity in the MSME Registration Form, it is necessary to apply in name of the owner only and not of the entity name. The applicant document including PAN Card or Aadhaar Card should be used for entering the Name of the entrepreneur. In the case of LLP / Company / Partners, not only a single partner or owner but all individuals with an ownership interest should be entered. For a Public limited company, MSME Registration can be obtained in name of the company, and details of the designated partners can be added.


Errors in the Selection of NIC Code 

NIC Code is a classification for different entities under the National Industrial Classification 2008 codes. It is essential to enter the right classification code from the list and a maximum of 10 NIC codes can be entered to classify your business. Entering the wrong NIC Code can result in the cancellation of registration.

There is an option for the applicant to amend the NIC Codes later even after registration. But accessing different government schemes in name of other business NIC codes can result in the imposition of severe penalties. It is better to consult a business registration expert during the selection of the NIC Code in the application.

Details of Multiple Units of Business:

All entities registered by the entrepreneur should be enlisted under a single MSME Registration. In the case of entities like Public Limited Companies / Limited Liability Partnership or Cooperative Societies or Trust, the GST Number of the legal representative, director, or Authorized signatory should be used to add more entities under the single MSME Registration.

In case some business information is suppressed or incorrect facts are added, it can later result in the cancellation of MSME Registration / Rejection of Application or impose severe penalties from the government.

Problems in Calculation of Turnover:

For the application of MSME Registration, the total sales turnover for the previous year of the entity is to be entered on a self-declaration basis. It is mandatory to be added even if the applicant does not hold any GST Registration or PAN. In case, PAN and GST were applied, it will be auto-populated and it is better to confirm the value of turnover computed in the field.

Under one PAN multiple businesses can be added for Single MSME Registration, turnover from all entities should be included together to apply for Single MSME Registration using one form.

Verification with Aadhaar OTP

It is necessary to enter the names of the person authorized to run the business as a legal owner. For application with MSME Registration Form, the name should be added with the Aadhaar number. The mobile number should be linked with the Aadhaar to verify the registration.

Points to Consider for MSME Registration Form Filling 

  • The registration form can be filed by entrepreneurs after considering their entity to be eligible for MSME Registration as per their Investment in Plant and Machinery.
  • Specify the name of the business unit for which the registration is to be obtained, you can provide a new name to enlist multiple businesses under it. The name of the business shall be chosen carefully as it will be printed on the MSME Certificate and is granted to the applicant within 1 to 2 hrs, if any discrepancy is found errors or rectifications can be made by logging in to the MSME Registration Portal.

What if the information in MSME Registration Form is wrongly entered?

MSME Registration Form can be filed online and all details/documents are uploaded on the portal once for generation of the MSME Certificate. As per the MSME Act, 2006, whoever intentionally or in any way provides wrong information to the department under the MSME Registration form or during the rectification of information, penal provisions as per Section 27 shall be undertaken against the applicant.

Section 27 provides the following punishment for suppression of facts or intentional attempt to submit wrong information:

  1. For the first conviction – a Fine of up to Rs 1,000/-
  2. For a Second or Subsequent conviction – Rs 1,000/- to even Rs 10,000/-.

MSME Registration is a tool to bring better transparency in operations and to extend policy benefits to Micro, Small, and Medium Enterprises.

To help you avoid making any mistake in your business registration under MSME or any other legislation our business registration experts are there to help you.

For MSME Registration / Business Incorporation / UdyogAadhar Application, connect to our expert at