MSME Udhyam Registration
Extension of Validity of UAM :
The existing enterprises registered under UAM or EM- Part-II prior to 30th June,2020, shall continue to be valid only for a period up to the 31st day of December, 2021, earlier the last validity date has kept as 31st March 2021.
Udyam Registration Portal:
All existing enterprises registered under Enterprise Memorandum –Part-II (herein after EM -II) or Udyog Aadhaar Memorandum (herein after UAM) shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
Udyam Registration has been made applicable with effect from 01st July ,2020 onwards with an objective to make MSME Registration process simplified and there by making the MSME benefits reachable to Business entities at a large scale.
Here in below a comparative study has been given for easy understanding.
UAM Registration vs Udyam Registration:
|UAM Registration (Old Process)||Udyam Registration (Replaced Process)|
|1. It involves more paper work and compiling of various authenticated documents .||1. It requires only few details say PAN , Aadhaar, GST Registration Number, self declaration .|
|2. It involves uploading of multiple documents.||3. No need to upload any scanned or certified document as under new process self certification is sufficient|
|4. Registration form contains multiple data fields spread over multiple pages .||2. The registration form is very simplified which is spread over a single page.|
- On registration, an enterprise (referred to as ―Udyam in the Udyam Registration portal) will be assigned a permanent identity number to be known as ―Udyam Registration Number .
- The form for registration shall be as provided in the Udyam Registration portal.
- No enterprise shall file more than one Udyam Registration.
- An e-certificate, namely, ―Udyam Registration Certificate shall be issued on completion of the registration process.
- No Fees is required to be paid for UDYAM Registration.
MSME Classification Criteria :
It is pertinent to check MSME Classification criteria to know whether your entity is eligible for Udyam registration .
The following is the MSME Classification breakup prescribed by GoI applicable with effect from 1st July 2020
- Only entities engaged in Manufacturing of goods or provision of services line are eligible to be registered as an MSME subject to other conditions i.e. entities engaged in trading activities are ineligible.
- 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).
- Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
MSME Registration Benefits:
Having read about MSME Classification now we can have a look on some of benefits that can be availed by an MSME Registered entity
Disclaimer:“Information contained herein is for informational purposes only and should not be used in deciding any particular case. The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Though utmost efforts have been made to provide authentic information, it is suggested that to have better understanding and obtaining professional advice after thorough examination of particular situation.”