Get an expert at affordable price

UDYAM REGISTRATION (Earlier known as MSME Udyog Aadhaar)

Enterprise meeting the following criteria can be classified as MSME (Micro, Small or Medium Enterprise): MSME Udyam registration process

• a micro-enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
• a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
• a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

The above criteria are dynamic and hence, the entity has to review the latest criteria defined by the Government

HOW TO BECOME A MSME

The enterprise needs to follow the following steps to become MSME

(1) Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.

(2) On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identification number to be known as “‘Udyam Registration Number”.

(3) An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.

 

BENEFITS TO MSME:

Benefits extended to MSME are as follows:-

MSME Schemes:

The government has designed various schemes for MSME as follows:

1. Prime Minister Employment Generation Programme and Other Credit Support Schemes

1.1.       Prime Minister Employment Generation Programme (PMEGP)

1.2.       Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)

1.3.       Interest Subsidy Eligibility Certificate (ISEC)

2.      Development of Khadi, Village and Coir Industries

2.1.   Science and Technology Scheme

2.2.   Market Promotion & Development Scheme (MPDA)

2.3.   Revamped Scheme Of Fund for Regeneration Of Traditional Industries (SFURTI)

2.4.   Coir Vikas Yojana (CVY)

2.4.1. Coir Industry Technology Upgradation Scheme (CITUS)

2.4.2. Science and Technology (S&T) for Coir

2.4.3. Skill Upgradation & Mahila Coir Yojana (MCY)

2.4.4. Export Market Promotion (EMP)

2.4.5. Domestic Market Promotion Scheme (DMP)

2.4.6. Trade and Industry Related Functional Support Services (TIRFSS)

2.4.7. Welfare Measures (Pradhan Mantri Suraksha Bima Yojana (PMSBY))

3.      Technology Upgradation and Quality Certification

3.1.   Financial Support to MSMEs in ZED Certification Scheme

3.2.   A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

3.3.   National Manufacturing Competitiveness Programme (NMCP)

3.3.1. Credit Linked Capital Subsidy for Technology Upgradation

3.3.3. Marketing Support/Assistance to MSMEs (Bar Code)

3.3.4. Lean Manufacturing Competitiveness for MSMEs

3.3.5. Design Clinic for Design Expertise to MSMEs

3.3.6. Technology and Quality Upgradation Support to MSMEs

3.3.7. Entrepreneurial and Managerial Development of SMEs through Incubators

3.3.8. Enabling Manufacturing Sector to be Competitive through QMS&QTT

3.3.9. Building Awareness on Intellectual Property Rights (IPR)

4.      Marketing Promotion Schemes

4.1.   International Cooperation

4.2.   Marketing Assistance Scheme

4.3.   Procurement and Marketing Support Scheme (P&MS)

5.      Entrepreneurship and skill Development Programme

5.1.   Entrepreneurship Skill Development Programme (ESDP)

5.2.   Assistance to Training Institutions (ATI)

6.      Infrastructure Development Programme

6.1.   Micro & Small Enterprises Cluster Development (MSE-CDP)

7.      Scheme of Surveys, Studies and Policy Research

7.1.   Revised guidelines (bilingual) of scheme SS&PR with effect from 15-10-2018.

8.      National SC-ST-HUB

8.1.   National SC-ST-HUB

9.      Scheme of Information, Education and Communication

9.1.   Scheme of IEC Guideline

Benefits from participation in TReDS:

MSME can participate in TReDS as sellers

What is TReDS

•       TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).:

Benefits from RBI’s Priority Sector Lending:

MSME can benefit of RBI’s priority sector lending

RBI’s Priority sector lending

Priority sector lending includes only those sectors as part of the priority sector, that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises.

REGISTRATION PROCESS OF UDYAM

Please note the following steps to register Udyam

(1) The form for registration shall be as provided in the Udyam Registration portal.

(2) There will be no fee for filing Udyam Registration.

(3) Aadhaar number shall be required for Udyam Registration.

(4) 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 a Karta in the case of a Hindu Undivided Family (HUF).

(5) 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.

(6) 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 a self-declaration basis.

(7) No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.

(8) Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or update process shall be liable to such penalty as specified under section 27 of the Act. msme udyam registration process

MUST-KNOW FACTS ABOUT MSME

The government has strived to provide the benefits to MSME and the following points must be kept in mind:

• An enterprise for 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 DICs will help you in the process.
• Registration Process is free. No Costs or Fees are to be paid to anyone.

IMPORTANT POINTS MUST BE FOLLOWED

The government has made the MSME registration process free (no cost involved), paperless (no hard copy to be furnished) and based on the 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 an Adhaar Number will be enough for registration.
• PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases.
• Our online system will be fully integrated with Income Tax and GSTIN systems.
• Having PAN & GST numbers 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.

INVESTMENT & TURNOVER CRITERIA FOR MSME REGISTRATION

The following criteria are defined to classify MSME on the basis of investment and turnover quantum:

(1) A composite criterion of investment and turnover shall apply for the classification of an enterprise as micro, small or medium.

(2) 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 but 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.

(3) All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as a micro, small or medium enterprise.

CALCULATION OF INVESTMENT IN PLANT & MACHINERY / EQUIPMENT

(1) The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.

(2) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.

(3) 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).

(4) The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on a self-disclosure basis, if the enterprise is a new one without any ITR.

(5) The cost of certain items specified in Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.

CALCULATION OF TURNOVER

(1) Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for classification. (2) Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN. (3) The turnover related figures of such enterprises which do not have PAN will be considered on a self-declaration basis for a period up to 31st March 2021 and thereafter, PAN and GSTIN shall be mandatory.

UDYAM REGISTRATION PROCESS FOR EXISTING MSME Udyog Aadhar registration process

(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 re-classified following this notification.

(3) The existing enterprises registered before 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 organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

UPDATION OF INFORMATION & TRANSITION PERIOD IN CLASSIFICATION

(1) An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on a self-declaration basis.

(2) Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.

(3) Based on the information furnished or gathered from the Government’s sources including ITR or GST return, the classification of the enterprise will be updated.

(4) In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise, a communication will be sent to the enterprise about the change in the status.

(5) In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent reclassification, an enterprise will maintain its prevailing status till the expiry of one year from the close of the year of registration. (6) In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year. msme udyam registration process

VALIDITY OF UDYAM REGISTRATION CERTIFICATE

There is no validity for Udgyam Registration Certificate, hence registration is valid till cancelled

CAN MULTIPLE REGISTRATION BE OBTAINED

Each MSME has to obtain one Udyam registration

MSME DISCLOSURE IN LLP-8 ROC FILINGS

MSME Registration for new MSME not yet registered

MSME already registered as UAM