Udyam Registration Process by MSMEs

The Ministry of Micro, Small and Medium Enterprises (MSMEs) vide its publication of notification in Gazette of India dated 26th June, 2020 has specified the new form and procedure for filing the memorandum to be known as ‘UDYAM REGISTRATION’ with effect from 1st day of July, 2020.

Features of Udyam Registration

• The new process of MSME registration can be done online at www.udyamregistration.gov.in portal.
• The process will be completely online, paperless and based on self-declaration. There won’t be any requirement to upload documents, papers, certificates or proof.
• Adhaar Number will be required for registration in udyam
• 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.
• Udyam Registration Number will be allotted and Udyam Registration Certificate will be issued after successful registration of MSME under such portal.
• There will be no need for renewal of Registration.
• PAN and GST linked details on investment and turnover of enterprises will be taken automatically from the respective Government databases.
• The new online system of Ministry will be fully integrated with Income Tax and GSTIN systems.
• Those who 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 under this new portal.
• All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification.
• The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021.
• No enterprise is supposed to 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.
• Government’s facilitation mechanism in the name of ‘Single Window Systems’ at Champions Control Rooms will facilitate registration process and handholding of MSMEs and DICs will act as ‘Single Window Facilitation Systems’ and help people in their Districts.

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:-

(i) 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;
(ii) 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
(iii) 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.

Rietway Consultants can help you in Registering your MSME in udyam. For any query Feel Free to ask us.