MSME stands for Micro, Small and Medium Enterprise (MSME), introduced by           Government of India in agreement with Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 are entities engaged in the production, manufacturing, processing or preservation of goods and commodities.

The MSME enterprise should be in business for over a year and its annual turnover should be greater than INR 24 Lakhs. The documentation required for loan eligibility includes KYC documents, a business registration certificate and the Current Account statement for the last 6 months.

MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme

Both MSME and Udyog Aadhar registration processes are quite similar but they are different initiatives. Udyog Aadhar can be an easy means to acquire MSME registration. So, you can easily apply for MSME registration once you get your 12-digit Udyog Aadhar number.