Tag: udhyog aadhar

A micro, small and medium enterprise (MSME) will now be identified as Udyam as per the notification issued by the Ministry of MSME on 26 June 2020. The ministry has also come up with specific guidelines for the classification of MSMEs. Also procedure for registration and the arrangements made by the ministry for facilitation in this process. The notification clarified that exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether micro, small or medium. It further stated that the registration process will be known as Udyam Registration.

 The MSME Ministry notified that Udyam Registration can be filed online based on self-declaration with no requirement to upload documents, papers, certificates, or proof. One can register an enterprise just based on the Aadhaar number. The company will make the new online registration available from 1 July 2020.

Criteria for MSME Registration

The MSME classification is based on the criteria of investment in plant and machinery and turnover. Under Aatmanirbhar Bharat Abhiyan, the government revised the MSME classification by investment and annual turnover.

The distinction between the manufacturing and the services sectors under the MSME has been removed. The following is the revised MSME classification to be considered for deciding an MSME.

Key Takeaways:

• Register only on a Government portal.
• The portal name is Udyam Registration and the URL is http://udyamregistration.gov.in
• Whoever intentionally misrepresents, shall be liable to such penalty.
• No enterprise shall file more than one Udyam Registration:
• In the end, the Registration certificate will be generated & sent to you or print yourself from the portal

Documents required for Udyam Registration 

• Aadhar NumberPAN Card
• Copy of industrial license
• Bills and receipts on purchase of machinery
• Bank account details
• Business address proof
• Copies of sale and purchase bills
• Partnership Agreement
• Memorandum of Associations
• Articles of Associations
• Certificate of Incorporation
• Copy of Resolution passed in general meeting
• Copy of Board Resolution 

Udyam Registration Process 

• The form for registration shall be as provided in the Udyam Registration portal.
• There will be no fee for filing Udyam Registration.
• Udyam Registration requires an Aadhaar number.
• The Aadhaar number shall be of the proprietor in the case of a proprietorship firm and of the managing partner in the case of a partnership firm.
• In the case of a Company or a Limited Liability Partnership or Cooperative Society or a Society or 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 a 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.
• No enterprise may file more than one Udyam Registration. However, any number of activities, including manufacturing, service, or both, may be specified or added to a single Udyam Registration.
• Whoever intentionally misrepresents facts and figures in the Udyam Registration shall be liable to such penalty as specified under section 27 of the Act.

Udyam Registration of existing enterprises 

• All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1 st day of July 2020.
• All enterprises registered till 30th June 2020, shall be re-classified under this notification.
• The existing enterprises registered before 30th June 2020, shall continue to be valid only for a period up to the 31stday of March 2021
• An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises must register itself under Udyam Registration.

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Any person who intends to establish a micro, small or medium enterprise may file MSME/UDYAM Registration online in the Udyam Registration portal. It is based on self-declaration with no requirement to upload documents, papers, certificates, or proof. On registration, an enterprise will be assigned a permanent identification number to be known as the “‘Udyam Registration Number”. An e-certificate, namely, the “Udyam Registration Certificate” shall be issued upon completion of the registration process.

MSME/UDYAM Registration Everything you need to know:

1. The MSME registration process is free, fully online, paperless, and based on self-declaration.
2. Registration of an MSME does not require uploading any documents or proof.
3. Only an Adhaar Number will be enough for 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
5. The organization or its authorized signatory shall provide its GSTIN and PAN along with its Aadhaar number.
6. PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases.
7. The government online system will fully integrate with the Income Tax and GSTIN systems.
8. PAN and GSTIN are required for Udyam Registration with effect from 01.04.2021.
9. No enterprise shall file more than one Udyam Registration.
10. 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.
11. 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.

MSME/UDYAM Registration Process

1. Fill in the MSME registration form with all required details online provided in the Udyam Registration portal.
2. Click on the first link if you are a New Entrepreneur who is not yet registered as an MSME.
3. Enter the Aadhaar Number and Name and click on ‘Validate & Generate OTP’.
4. You will have to fill in the PAN details, after the completion of verification. You can select the No option if you don’t have a PAN card yet.
5. Post this, you will have to fill the form having field numbers 5-24.
6. At the end of the form, an OTP request will be sent to your phone again. Enter the OTP and verification code to submit the form successfully
7. After successful registration, a “Thank You” message will appear with a Registration Number. Keep that number handy for later reference.
8. After the submission of the application form, it can take 2-3 days for the approval and registration to complete.
9. If the application receives approval, completion of the registration and sending of the MSME certificate via email will occur.

MSME/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 following this notification.
3. The existing enterprises registered before 30th June 2020, shall continue to be valid only for a period up to the 31st day 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.

Also Read: What is MSME Loan? MSME Eligibility, Documents, MSME Schemes.

Benefits of MSME/UDYAM Registration

Registration of your MSME is not compulsory. If you want to register, then your business can enjoy an excise privilege scheme from direct taxes, and avail of special schemes from banks custom-made for MSMEs.

Also, registered businesses with an MSME certificate will benefit from different government departments, including electricity. 

1. MSME certificate helps in getting government tenders.
2. Under a bank loan, a 15% import subsidy on fully automatic machinery
3. Becomes easy to get licenses, approvals, and registrations, irrespective of the field of business
4. Compensation for ISO certificate expenditure
5. MSME registration helps new entrepreneurs, traders, and business owners in getting loans at low interest rates.
6. Registered MSMEs get tariff subsidies and tax and capital subsidies
7. Gets exemption under Direct Tax Laws
8. Avail special rebates and concessions on patents and industry set-ups 
9. One-time settlement fee for the amount unpaid 
10. Government preference for MSMEs 
11. Get credit guarantee schemes from the Government 
12. Special consideration on International Trade fairs
13. Bar code registration subsidy 
14. Support from your state government

*Note MSME/ Udyam registration process is completely free.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.