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More than 11 Lakh MSMEs have Udyam Registration Have you Registered?

More than 11 Lakh MSMEs have Udyam Registration Have you Registered?

Totally seamless & smooth system also shows stability & resilience
more than 11 lakh MSMEs already registered since its launch on 1st July, 2020 out of this, more than 9.26 lakh registrations took place with PAN number


This also includes more than 1.80 lakh old UAM holders; 1.73 lakh enterprises owned by women Ministry of MSME launches special drives for increasing Udyam Registration.

Registration without PAN and GST upto 31.3.2021 as transitional arrangement

New online system of MSME/Udyam Registration launched by Union MSME Ministry, w.e.f. 1st July, 2020, has stood the test of Time & Technology as  more than 11 lakh MSMEs have successfully registered themselves by now.

It may be stated that Ministry of MSME had revised the definition of MSMEs and process of registration w.e.f. 1st July, 2020. It also launched a new portal for MSME/Udyam registration. Since then, the portal is working smoothly.  In a major first, this portal is seamlessly integrated with CBDT and GST networks  as also with the GeM. It may  be noted that through this integration, now MSME registration is a totally paperless exercise. 

24 Benefits of Obtaining Udyam Registration for MSMEs

Ministry has instructed all of its Field Establishments such as MSME-Development Institutes, MSME Technology Centers, NSIC, KVIC, Coir Board to extend full support to entrepreneurs for Udyam Registration. Similarly, all District Magistrates and District Industries Centers have been requested to expedite registration by the MSMEs. Grievances of MSMEs relating to registration are being handled by CHAMPIONS’ platform through its network of Central Control Room and 68 State Control Rooms across the country. 

As per the analysis of the registrations till October 31, 2020 (more than 10 Lakh), the trend and broad picture is as follows:- 

  • 3.72 lakh enterprises have registered under Manufacturing category whereas 6.31 lakh enterprises under Service sector.
  • The share of Micro Enterprises is 93.17% whereas Small and Medium Enterprises are 5.62% and 1.21% respectively.
  • 7.98 lakh enterprises are owned by Male whereas 1.73 lakh enterprises by Female entrepreneurs.
  • 11,188 enterprises are owned by Divyangjan entrepreneurs.
  • The Top 5 Industrial sectors of registrations are – Food Products, Textile, Apparel, Fabricated Metal products and Machinery & equipments.
  • 1,01,03,512 persons have been given employment by these registered units.
  • 5 leading States for Udyam registrations are Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh and Gujarat.
  • Registration without PAN is permitted upto 31.03.2021 as a transitional arrangement.
  • Similarly, Registration without GST number is also permitted upto 31.03.2021 as a transitional arrangement. 

Enterprises which are not yet registered, should register themselves to avail the benefits of Ministry of MSME and other Government agencies.

Know Step wise process of UDYAM Registration for new MSME’s

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Ministry of MSME Clarifications on Validity of Entrepreneurs Memorandum (EM), Udyog Aadhaar Memorandum (UAM) and Udyam Registration

Ministry of MSME Clarifications on Validity of Entrepreneurs Memorandum (EM), Udyog Aadhaar Memorandum (UAM) and Udyam Registration

Recent Notification No. S.O. 2119(E) dated 26.06.2020 issued by Ministry of Micro., Small & Medium Enterprises(MSME) regarding criteria for classification of enterprises as Micro, Small & Medium Enterprises and their registration in Udyam Portal. Thereafter, Government has received some representations seeking clarifications on certain issues necessitating the issuing of this Office Memorandum (O.M.).

Validity of EM Part II and UAMs as issued till 30th June, 2020:

i. There are representations whether the existing EM Part H and / or UAMs of the. MSMEs are valid or not.

ii. It is to be clarified that at present they are valid. Para (3) of Clause 7 of the above Notification No. S.O. 2119 (E) dated 26.6.2020, reads as follows:

“The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 3r day of March, 2021”.

Therefore, it is clarified and emphasized that all the existing EM Part II and UAMs obtained till

iii. 30.06.2020 shall remain valid till 31.03.2021.

Editing /updating of the existing registration details:

There are also doubts whether existing UAM holders may edit or amend their details on the UAM portal. It is clarified that the same can be done till 31.3.2021. Those enterprises that have not entered their Aadhaar or PAN number so far in the UAM portal are hereby advised to obtain ” Udyam Registration Number ” well before 31.3.2021.

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Action to be taken before 31st March 2021 by Entrepreneurs:

(i) Since the existing registrations as EM Part II and for UAMs will not remain valid after 31st March, 2021 it is strongly recommended that their holders file fresh registration in the new Udyam Registration Portal (https://udyamregistration.gov.in).

(ii) Attention is also drawn to Para (2) of Clause 7 of the above Notification No. S.O. 2119 (E) dated 26.6.2020 which reads as under:

“All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification”.

(iii) To make the re-classification proper and realistic, it is necessary that the latest details are entered by the MSMEs.

(iv) It is preferable that the entrepreneur files new registration in the Udyam Registration Portal. Therefore, all enterprises with EM Part II and/or UAMs are advised to register themselves on the Udyam Registration well before 31.03.2021 in the Udyam Registration portal (www.udyamregistration.gov.in).

Value of Plant and Machinery or Equipment:

(i) There are clarifications sought by the entrepreneurs regarding valuation of plant and machinery or equipments on cost or purchase price while filing the Udyam Registration.

(ii) Para 3 of clause 4 Notification No. S.O. 2119(E) dated 26.6.2020 reads as follows:

“The expression plant and machinery or equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings)”.

(iii) It is clarified that online Form for Udyam Registration captures depreciated cost as on 31st March each year of the relevant previous year. Therefore, the value of Plant and Machinery or Equipments for all purposes of the Notification No. S.D. 2119(E) dated 26.6.2020 and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the Financial Year as defined in the Income Tax Act and not the cost of acquisition or original price, which was applicable in the context of the earlier classification criteria.

RBI’s Circular and Miscellaneous

In the light of the above, RBI is being requested to revisit their Circular No.RBI/2020- 2021/10/FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated 2.7.2020.

Taking this opportunity, it is further reiterated that the entire registration process is free of cost. Also, it should be done only on and through the Government Portal as above.

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All existing enterprises registered under Udyog Aadhaar shall register again on the Udyam Registration by 31 March 2021 Know Online Process

All existing enterprises registered under Udyog Aadhaar shall register again on the Udyam Registration by 31 March 2021 Know Online Process

Step wise process UDYAM registration for existing MSME registered before 30th June 2020

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.

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.

FOR EXISTING ENTERPRISES

  1. All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
  2. All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
  3. The existing enterprises registered prior to 30th June,2020, shall continue to be valid only for a period up to the 31stday of March, 2021.
  4. An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
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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 asMaximum Investment in plant and machinery or equipmentMaximum Turnover
Micro enterpriseRs 1 croreRs 5 crore
Small enterpriseRs 10 croreRs 50 crore
Medium enterpriseRs 50 croreRs 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.

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.

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

Inclusion and exclusion in calculation of amount of Turnover:

Turnover details in case of new enterprise shall be details mentioned in the last ITR. In case of new enterprise a self-declaration of the promoter is required to consider the investment amount.

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 1st Conviction, with fine which may extend to Rs. 1000/- and

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

Procedure for UDYAM registration for existing enterprise:

All enterprise registered under old method till 30/06/2020 shall be reclassified. Existing enterprise registered up to 30/03/2020 – valid till 31/03/2021. Failure to update within due date – Suspension of registration. Based on the latest information – The classification will be updated. The following is the process for UDYAM registration:

Step 1: Go to https://udyamregistration.gov.in/

Click on “For those already having registered as EM-II or UAM” option

Step 2: Fill your Udyog Aadhaar details and select OTP option i.e. whether you want to receive OTP on mobile or on registered mail id.

Now, click on “Validate & Generate OTP” and enter the OTP number that you have received in your mobile number or E-mail and select Validate.

Your Udyog Aadhaar will be validated successfully.

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Step wise process of UDYAM Registration for new MSME’s

Step wise process of UDYAM Registration for new 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.

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.

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 asMaximum Investment in plant and machinery or equipmentMaximum Turnover
Micro enterpriseRs 1 croreRs 5 crore
Small enterpriseRs 10 croreRs 50 crore
Medium enterpriseRs 50 croreRs 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.

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Enter your email address:

Subscribe to faceless complainces

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.

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

Inclusion and exclusion in calculation of amount of Turnover:

Turnover details in case of new enterprise shall be details mentioned in the last ITR. In case of new enterprise a self-declaration of the promoter is required to consider the investment amount.

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 1st Conviction, with fine which may extend to Rs. 1000/- and

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

Procedure for UDYAM registration for new enterprise:

The following is the process for UDYAM registration:

Step 1: Go to https://udyamregistration.gov.in/

Click on “For new Enterpreneurs who are not registered yet as MSME” option.

Step 2: Fill your Aadhaar no, name as per aadhaar and click on “Validate & Generate OTP”

Enter the OTP number that you have received in your mobile number and select Validate. Your Aadhaar no will be validated successfully.

Step 3: PAN Verification

Select the type of organization and enter your PAN no and click on validate. Your PAN will be validated. Your PAN will be validated.

Step 4: Filling of Udyam registration form

After the PAN is validated fill the following details:

a. Mobile no and E mail id

b. Social Category and Gender

c. Name of Enterprise and Address of office

d. Date of incorporation

e. Select, whether production is commenced or not

f. Date of commencement of business

g. Bank details of the entity

h. Major activity of the business unit i.e. Manufacturer or service unit

i. National Industry Classification (NIC) Code for Activities(One or more activities can be added)

j. Number of persons employed

k. Amount invested in plant or machinery

l. Check yes or no if you are interested to get registered on Government e-Market (GeM) Portal

m. Check yes or no if you are interested to get registered on TReDS Portal

n. select the District Industry centre from the drop down

After filing the above details select on agree terms and conditions check box and click on “Submit and Get final OTP”

Enter the OTP received on mobile and click on “Final submit” button.

Once you click on ‘Submit and Get Final OTP’you will receive a registration number. Once all your information is verified by the Government, you will receive an E-registration document on your e-mail id.

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.
  • 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.

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.

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