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. An enterprise can be registered just based on the Aadhaar number. The new online registration will be made 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.
- 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.
- 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.
- In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a 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 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.
- 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.
- 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
- It is mandatory an enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.