(Online Portal) Udyam Registration For MSME’S @udyamregistration.gov.in

Information on Udyam Registration For MSME’S @udyamregistration.gov.in,Udyam Registration Online Portal at www.udyamregistration.gov.in, how to register new / existing enterprise with aadhar number, self declaration, check notification, new definition of MSMEs & complete details.

Central government on 26 June 2020 notified new norms to allow Online Registration of New Enterprises based on self-declaration. From 1 July 2020, there is no requirement to upload documents and certificates for Udyam Registration. People can now Register New Enterprise Online with Aadhar Number and Self Declaration at www.udyamregistration.gov.in. The Union govt. has integrated Udyam Registration process with the Systems of Income Tax and GST. The filled in enterprise details can be easily verified on the basis of PAN number or GSTIN details.

An enterprise can be registered just on the basis of Aadhaar number. Other details can be given on self-declaration basis without any requirement of uploading or submitting any paper. Thus it is a paperless exercise in true sense. The notification also mentioned that after 1 July, an MSME will be known as “Udyam” as this is more closer to the word enterprise. Accordingly, the registration process will be known Udyam Registration.

From then onward, investment in Plant and Machinery or Equipment and Turnover are the basic criteria for classification of MSMEs. The notification also clarifies that exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether micro, small or medium.

Udyam Registration For MSME’S

Formally, MSMEs are defined in terms of investment in plant and machinery. But this criterion for the definition was long criticized because credible and precise details of investments were not easily available by authorities. Therefore in February 2018, the Union Cabinet decided to change the criterion to “annual turnover”, which was more in line with the imposition of GST.

The Central Government, after obtaining the recommendations of the Advisory Committee, has notified certain criteria for classifying the enterprises as micro, small and medium enterprises and has specified the form and procedure for filing the memorandum (Udyam Registration), with effect from 1st July, 2020.

Step wise process of UDYAM Registration for new MSME’s

Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal on self-declaration. No fees is charged for applying Udyam registration. Mandatory aadhaar of proprietor or partner or promoter or director or Karta is required in case of Udyam registration.

As part of facilitating the ease of doing business initiative and reduce the transaction time and costs, the Centre has come up with Udyam registration for the micro, small and medium enterprises.The Centre’s new portal is expected to give more fillip to the entrepreneurs in the state as majority of the business initiatives in the state come under the category of MSMEs. The ministry of micro, small and medium enterprises has clarified that except the portal no other private online or offline system, service, agency or person is authorized to do MSME registration.

The Indian government has been taking a number of measures to tackle the disruptions caused by the pandemic, giving special focus on small businesses. The small and medium size businesses form the backbone of any economy, specially developing economies like India, hence, the Micro, Small and Medium Enterprises (MSME) are seen as a key player in promoting momentum in economy once movement restrictions and social distancing norms are lifted. In order to stimulate the post-Covid economic scenarios, it is crucial to focus on the growth and development of the MSME sector.

How can an enterprise be classified as a micro, small or medium enterprise?

An enterprise on the fulfillment of the below mentioned criteria shall be classified as a micro, small or medium enterprise:-

Classified as	Maximum Investment in plant and machinery or equipment	Maximum Turnover
Micro enterprise	Rs 1 crore	Rs 5 crore
Small enterprise	Rs 10 crore	Rs 50 crore
Medium enterprise	Rs 50 crore	Rs 250 crore

If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category.

No enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

All units with GSTIN listed against the same PAN shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together.

Only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

Udyam registration to boost MSMEs

Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal.  Only a self declaration is enough and no other documents are required to be uploaded for registration.  This will be effect from 01.07.2020. 

Before that, with effect from September 2015 Udyog Aadhaar registration was in vogue.  Nearly 1.02 crores applicants have applied for registration as MSME.

Apply Online at Udyam (Enterprise) Registration Online Portal

MSME Ministry had on 1 June 2020 notified new criteria for classification of MSMEs based on investment and turnover. Now on 26 June 2020, MSME Ministry issued detailed notification giving MSMEs classification criteria. The notification also clarified about the procedure for registration and the arrangements made by the ministry for facilitation in this process. The official website http://www.udyamregistration.gov.in/ has been started from 1 July 2020. Udyam Registration For MSME’S

msme registration process Key Highlights 

•  A registration number will be given after completion of the entire process and Udyam Registration Certificate will be issued.

The Udyam Registration For MSME’S Certificate will have a dynamic QR Code from which the web page on the Portal and details about the enterprise can be accessed. There will be no need for renewal of the registration.

The PAN & GST linked details on investment and turnover of enterprises will be taken automatically from the respective Government databases.

•  The MSME Ministry’s online system will be fully integrated with Income Tax and GSTIN systems.

•  The MSMEs that have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will also have to re-register themselves on the portal. 

•  No enterprise will be allowed to file more than one Udyam Registration. Any number of activities including manufacturing or service or both may be specified or added under one Registration.

•  The government’s facilitated mechanism – single window systems at Champions Control Rooms and DICs will help people in this process.

•  The registration process will be completely free of cost, no fees will be required to be paid for the same.

MSME Registration is free, paperless and based on self- declaration

• MSME registration process is fully online, paperless and based on self-declaration.
• No documents or proof are required to be uploaded for registering an MSME.
• Only Adhaar Number will be enough for registration.
• PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases.
• Our online system will be fully integrated with Income Tax and GSTIN systems.
• Having PAN & GST number is mandatory from 01.04.2021.
• Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
• No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.

New Definition of Micro, Medium, Small Enterprises (MSMEs)

MSME Minister vide its notification dated 26 June 2020 has notified certain criteria to classify micro, small and medium enterprises. Subsequently, notification also specified the form and procedure for filing the memorandum, for both new and existing enterprises with effect from 1st July 2020. The new definition of MSMEs will be as follows:-

• Micro Enterprise – The enterprise where the investment in plant and machinery or equipment does not exceed Rs. 1 crore and turnover does not exceed Rs. 5 crore will be considered as Micro Enterprise.
• Small Enterprise – The enterprise where the investment in plant and machinery or equipment does not exceed Rs. 10 crore and turnover does not exceed Rs. 50 crore will be considered as Small Enterprise.
• Medium Enterprise – The enterprise where the investment in plant and machinery or equipment does not exceed Rs. 50 crore and turnover does not exceed Rs. 250 crore will be considered as Medium Enterprise.

Udyam Registration Benefit 

According to the MSME Ministry, the newUdyam Registration For MSME’S process will be extremely simple, seamless and entrepreneur-friendly. It will also help set an example in Ease of Doing Business, not only in India but internationally as well. It will also reduce transaction time and costs and the entrepreneurs and enterprises will be able to focus on their real work and become globally competitive.

MSME Ministry Facilitation Mechanism for Entrepreneurs

The MSME ministry has also established a strong facilitation mechanism for MSMEs in the form of Single Window Systems at the district level and regional level. This single window system will help those entrepreneurs who are not able to file the Udyam Registration For MSME’S for any reason. At the district level, the District Industry Centres (DIC) have been made responsible for facilitating the entrepreneurs. Similar to this, MSME ministry’s recent initiative of Champions Control Rooms across the country have been made legally responsible for facilitating such Entrepreneurs in registration and even thereafter.

People who do not possess valid Aadhaar number can approach the Single Window Systems for facilitation. Such people will have to carry their Aadhaar enrollment request or identity, bank photo passbook, voter ID card, passport or driving license with them. Accordingly, the Single Window Systems will facilitate them in registering as enterprise after getting the adhaar number.

Registration procedure

The Udyam portal may start functioning with effect from 01.07.2020.  The following is the procedure involved in registration under Udyam registration-

• The form for registration shall be as provided in the Udyam Registration portal.
• No registration fee is payable.
• For registration aadhaar number of the applicant is required.
• 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.
• In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.
•  In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis,
• No enterprise shall file more than one Udyam Registration.  However any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
• The Champions Control Rooms functioning in various institutions and offices of the Ministry of Micro, Small and Medium Enterprises including the Development Institutes (MSME-DI) shall act as Single Window Systems for facilitating the registration process and further handholding the micro, small and medium enterprises in all possible manner.
• On registration, an enterprise (referred to as ―Udyam‖ in the Udyam Registration portal) will be assigned a permanent identity number to be known as ―Udyam Registration Number.
• An e-certificate, namely, ―Udyam Registration For MSME’S Certificate shall be issued on completion of the registration process.

For those already having registration as EM-II or UAM

All existing enterprises registered under EM-Part-II or UAM shall register again on the Udyam Registration Portal on or after 1st July 2020. However, the existing enterprises registered prior to 30th June 2020 shall continue to be valid only for a period upto 31st March 2021. Below is the complete process to makeUdyam Registration For MSME’S for those who already have registration as EM-PART-II or UAM:-

• Visit the same official website at https://udyamregistration.gov.in/
• At the homepage, click at the “For those already having registration as EM-II or UAM” link.
• Direct Link – https://udyamregistration.gov.in/UdyamRegistrationExist.aspx
• Upon clicking this link, the Udyam Registration Form for existing entrepreneurs who already have registration as EM-II or UAM.

• Here applicants can enter their Udyog Aadhaar Number and validate OTP on Mobile / E-mail as filled in the application. Accordingly, fill in the remaining application form to complete the apply online process.

Furthermore, one enterprise shall be allowed to have only one Udyam Registration, wherein it may include any number of activities in the said registration.

How to calculate investment in plant and machinery and Turnover for MSME’s?

In case of existing enterprise the investment amount is calculated considering the details mentioned in the last ITR. In case of new enterprise a self-declaration of the promoter is required to consider the investment amount. Udyam Registration For MSME’S

Inclusion and exclusion in calculation of amount of Investment:

Inclusion:

a. All Tangible assets

b. Purchase value of first hand or second hand plant and machinery excluding GST.

Exclusion:

a. Land and Building

b. Furniture and Fixtures

Government has organised a full system of Facilitation for Registration Process

• An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as ‘Udyam Registration’
• A permanent registration number will be given after registration.
• After completion of the process of registration, a certificate will be issued online.
• This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.Udyam Registration For MSME’S
• There will be no need for renewal of Registration.
• Our single window systems at Champions Control Rooms and at DICs will help you in the process.

Penalty in case of misrepresentation:

Penalty for misrepresents or attempts to suppress the self-declared facts and figures shall be punishable:

a. In case of 1^st Conviction, with fine which may extend to Rs. 1000/- and

b. In case of 2^nd or subsequent Conviction with fine which shall not be less than Rs. 1000/- but may extend to Rs. 10,000.