Discover the benefits of trademark registration for MSMEs in India, including the process, cost, timelines, and exclusive advantages for small businesses.

Types of Trademark Applicant

Under the Trade Marks Act, 1999, and Trademark Rules, 2017, applicants for trademark registration in India are divided into:

1. Individuals/Proprietorships:
   • Definition: Includes individual persons or sole proprietorship firms (unregistered businesses owned by a single person).
   • Examples: Freelancers, solo entrepreneurs, or small business owners operating as sole proprietors (e.g., a local bakery owner or a freelance designer).
   • Fee Structure:
     • E-Filing: ₹4,500 per class.
     • Physical Filing: ₹5,000 per class.
2. Others:

• • Definition: Encompasses all entities that are not individuals, sole proprietorships, or startups or MSMEs.
  • Examples: Private Ltd. Company, Public Ltd. Company, Partnerships, Limited Liability Partnerships (LLPs), Trusts, Societies, Government entities, Joint Applicants, Joint Firm, Association of Person, HUF, Statutory Body and Foreign companies.
  • Fee Structure:
    • E-Filing: ₹9,000 per class.
    • Physical Filing: ₹10,000 per class.
  • Eligibility for Subsidies: Entities in this category pay higher fees unless they qualify as MSMEs with Udyam Registration.

Entities in "Others" That Can Qualify for MSME Status

While "Others" typically denotes larger entities, the following types of applicants may qualify for MSME benefits if they meet the investment and turnover thresholds and have Udyam Registration:

1. Partnership Firms:
2. Limited Liability Partnerships (LLPs):
3. Private Limited Companies:
4. Trusts and Societies (Commercial Activities):
5. Cooperative Societies:
6. Joint Applicants,
7. Joint Firm,
8. Association of Person,

9. Hindu Undivided Family (HUF)

Entities in "Others" That Typically Do Not Qualify

The following entities are generally excluded from MSME benefits, even with Udyam registration, due to their size, nature, or structure:

• Large Corporations: Companies exceeding ₹50 crore investment or ₹250 crore turnover (e.g., Reliance, Tata).
• Government Entities/PSUs: Public sector undertakings or government departments (e.g., Indian Railways, ONGC).
• Foreign Entities: Non-Indian companies or individuals, as MSME benefits are reserved for Indian businesses.
• Non-Commercial Entities: Trusts or societies with no commercial activity may not qualify unless they generate revenue within MSME limits.

MSME Eligibility Criteria

To qualify as an MSME, an entity must meet the following thresholds and register on the Udyam Registration Portal (udyamregistration.gov.in):

Category	Investment in Plant & Machinery/Equipment	Annual Turnover
Micro	Up to ₹1 crore	Up to ₹5 crore
Small	Up to ₹10 crore	Up to ₹50 crore
Medium	Up to ₹50 crore	Up to ₹250 crore

Calculation Notes:

• Investment refers to the cost of plant, machinery, or equipment (excluding land and buildings).
• Turnover excludes export turnover to encourage global competitiveness.
• Both criteria must be met for classification.

Step 1: Obtain MSME Certificate

Before filing, an MSME must obtain a valid Udyam/MSME Certificate from the Ministry of MSME.

• This certificate acts as proof of status and eligibility for reduced fees.

• Without it, the Registry will charge large entity fees, which are double the MSME rate.

Step 2: File Application (Form TM-A)

Documents required:

• MSME Certificate

• Logo (if applicable)

• Incorporation/Deed Registration

• User Affidavit (if claiming prior use)

• Power of Attorney (Form TM-48, if filed through an attorney)

Modes: Online (preferred) or Physical Filing

Step 5: Pay Applicable Fee

Here’s where MSME benefits come into play.

Applicant Type	Normal Fee (Online)	Physical Filing Fee	Expedited Fee (Online under Rule 34)
MSME / Startup	₹4,500 per class	₹5,000 per class	₹20,000 per class
Individual Applicant	₹4,500 per class	₹5,000 per class	₹20,000 per class
Large Entity / Company	₹9,000 per class	₹10,000 per class	₹40,000 per class

Key Insights:

• MSMEs and Individuals enjoy the same reduced filing fee.

• Large entities pay double the fee.

• Expedited filing is available to all, but fees are significantly higher.

Why MSMEs Should File Trademarks

• Builds brand credibility with investors and customers

• Prevents larger competitors from hijacking MSME brands

• Increases valuation for funding and mergers

• Helps in licensing and franchising models

• Provides eligibility for government schemes and IP facilitation support

Conclusion

Trademark registration is a strategic necessity for MSMEs, not just a legal formality. By leveraging fee concessions, expedited filing options, and robust IP enforcement, MSMEs can protect their brands while competing with larger players.

Whether you’re an individual entrepreneur or an MSME, the law offers benefits — but MSMEs stand to gain more by turning their intellectual property into a business growth asset.

FAQs

Q1. Do MSMEs get reduced trademark fees?
Yes, MSMEs, Startups, and Individuals pay ₹4,500 per class (online) compared to ₹9,000 for large entities.

Q2. What documents prove MSME status?
The MSME/Udyam Registration Certificate issued by the Ministry of MSME.

Q3. Can MSMEs apply for expedited trademark filing?
Yes, at ₹20,000 per class, MSMEs can opt for expedited examination.

Q4. Is the benefit the same for MSMEs and individuals?
Yes, both enjoy reduced fees. The difference lies in proof of status and the business implications of protection.

Q5. Can an MSME transfer its trademark to another company?
Yes, through a Trademark Assignment Agreement (separate process).

Q6. Does renewal also have MSME discounts?
No. Renewal fee is the same for all applicant types (₹9,000 per class online).