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.
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.
For New Entrepreneurs who are not Registered yet as MSME
Below is the complete process for new entrepreneurs who are still not registered as MSMEs to apply online for Udyam Registration:-
- Firstly visit the official website at https://udyamregistration.gov.in/
- At the homepage, click at the “For New Entrepreneurs who are not Registered yet as MSME” tab as shown below:-
- Direct Link – https://udyamregistration.gov.in/UdyamRegistration.aspx
- Upon clicking this link, the Udyam Registration Form For New Entrepreneurs who are not Registered yet as MSME will open as shown below:-
- Here applicants can enter the aadhaar number and name of the entrepreneur which is required for Udyam Registration.
- An OTP would be sent on registered mobile number in aadhar card. Validate mobile number by entering OTP sent.
- Afterwards, select type of organization, enter PAN number and validate PAN Card and fill in the remaining application form as shown below:-
- Here applicants can fill in the remaining details in this form to complete the Udyam Registration Process for New entrepreneurs.
Important Note – Aadhaar number shall be required for Udyam Registration. 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 (HUF). In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
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 make Udyam Registration 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 will appear as shown below:-
- 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.
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 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.
An enterprise having Udyam Registration Number (URN) shall update their information online in the Udyam Registration portal. It would include details of the ITR and the GST Return for the previous financial year and such other additional information as may be required on self- declaration basis. This is as per the notification in respect of updating of information and transition period.
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.
Calculation of Investment
The calculation of investment in plant and machinery or equipment will be based upon the Income Tax Return (ITR) of the previous year filed under the Income Tax (IT) Act, 1961. Moreover it is also clarified that plant and machinery will include all tangible assets other than land and building & furniture and fittings.
All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively considered as one enterprise. These units will be used for the computation of turnover and investment for deciding the category as micro, small or medium enterprise.
Discrepancy / Complaint Redressal Mechanism
In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an inquiry for verification of the details of Udyam Registration submitted by the enterprise. Afterwards, the official will forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government. These officers will then issue a notice to the enterprise and after giving an opportunity to present its case and based on the findings, may amend the details or recommend to the MSME Ministry for cancellation of the Udyam Registration Certificate.
The new system of classification, registration and facilitation of MSMEs will be an extremely simple and yet fast-track, seamless and globally benchmarked process and a revolutionary step towards Ease of Doing Business.
Read Full Notification here – https://msme.gov.in/sites/default/files/IndianGazzate_0.pdf