Many MSME owners run their business for years without knowing that a few essential certifications can completely change their growth potential.
These certifications affect everything from legal recognition to funding, tenders, exports, quality approval and customer trust.
This guide breaks down the must-have certifications for MSMEs, what they are used for, who needs them, and why they matter.
1. Legal Identity Certifications (Mandatory for All Businesses)
Every MSME must have a legal business structure before applying for schemes, licenses or loans.
🏢Types of Legal Entities
A legal structure allows you to open a current account, apply for licenses, participate in tenders and protect your business under the law.
💳GST Registration
GST is mandatory for:
- •Businesses crossing the turnover threshold
- •Businesses selling interstate
- •E-commerce sellers
✨Why it matters:
- Enables legal trading
- Allows you to claim input tax credit
- Required for B2B transactions
- Essential for compliance and documentation
2. MSME Recognition (Udyam Registration)
Udyam Registration is one of the most important certifications for small businesses in India.
🎯What it provides:
Almost every incentive designed for MSMEs requires Udyam as the first step.
3. Product & Food Licenses (If Applicable)
Depending on your industry, certain certifications are compulsory.
🍽️FSSAI (Food Businesses)
Required for:
FSSAI certification ensures safety, hygiene and legal compliance.
⚙️BIS / ISI Certification
Certain products require mandatory BIS certification, especially items related to:
Always check if your product falls under the mandatory BIS list.
4. Export & Quality Certifications
If you plan to sell outside India or want higher buyer trust, these certifications matter.
🌍IEC (Importer-Exporter Code)
Mandatory for:
Without IEC, international trade is not permitted.
⭐ISO Certification
Not compulsory, but highly beneficial.
🎯ISO standards help with:
ISO certifications like ISO 9001, ISO 14001, ISO 22000, etc., improve market access.
5. Procurement & Growth Certifications
📋SPRS / Public Procurement Benefits
Under government procurement policies, registered MSEs receive:
For manufacturers and service providers wanting to work with government departments, these certifications are essential.
Why These Certifications Matter for MSMEs
Better Compliance and Credibility
Certifications protect your business legally and increase customer trust.
Access to Government Schemes
Loans, subsidies and incentives require proper documentation.
Eligibility for Tenders and Contracts
Most government and corporate tenders only accept certified businesses.
Faster Approvals and Lower Risks
Banks and authorities prefer businesses with updated registrations.
Stronger Market Position
Certifications show professionalism and quality assurance.
How MSMEs Can Get These Certifications Easily
Follow these steps to avoid delays:
Identify mandatory certifications for your sector
Prepare essential documents (KYC, business proof, GST, Udyam)
Submit applications through official portals
Keep compliance updated
Get support if you're unsure about eligibility or documentation
A consultancy can help save time, avoid mistakes and ensure faster approvals.
Conclusion
Most MSMEs miss growth opportunities simply because they lack the right certifications.
Whether you want to access schemes, expand to export markets, improve product quality or win government tenders, certifications are the foundation of business success.
Get your basics right, stay compliant and open new doors for your MSME.
FAQs
Q1:Is Udyam Registration mandatory?
A: It is required to access MSME schemes, subsidies and procurement benefits.
Q2:Do all businesses need GST?
A: GST is mandatory for businesses crossing the threshold or involved in interstate sales and e-commerce.
Q3:Do I need BIS certification?
A: Only if your product category falls under the mandatory BIS certification list.
Q4:Can service businesses get ISO?
A: Yes. ISO 9001 and other standards apply to service industries as well.
Q5:Is IEC needed for local businesses?
A: No. IEC is only required for import and export activities.
Need Help Getting MSME Certifications?
Get expert guidance on Udyam, GST, FSSAI, BIS, IEC, ISO and other essential certifications