WHAT ARE THE BENEFITS OF UDYAM REGISTRATION? HOW DO I GET UDYAM REGISTRATION?

WHAT IS UDYAM REGISTRATION?

The main question that many new entrepreneurs have in mind is what is Udyam registration? If you have a similar question, then you are at the right place.

As per the notification of the Ministry of MSME dated 26.06.2020, Udyam Registration is the new process of MSME / UDYOG AADHAAR Registration launched by the Ministry of MSME effective from July 1, 2020. Udyam Registration also referred to as MSME Registration is nothing but a government registration that’s provided alongside a recognition certificate and 16 Digit Alphanumeric registration number. The central motive of the government behind the launch of this facility was to offer a way to the government to recognize MSME Business and provide the maximum benefits to such organizations to promote ‘Atma Nirbhar Bharat Abhiyan’ or the Self-Reliant India Scheme of 2020. The registration on UDYAM Registration Portal is paperless and based on self-declaration. 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.

To register under Udyam, your business should be MSME, so let’s check what is MSME and what its classification criteria is next.

Micro, Small and Medium Enterprises

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under

(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.

Eligibility apply for Udyam Aadhar/MSME registration

MSME registration or Udyog Aadhaar can be obtained by any type of business entity, namely, Proprietorships,

• Hindu Undivided Family,
• Partnership Firm,
• One Person Company,
• Limited Liability Partnership,
• Private Limited Company,
• Limited Company,
• Producer Company
• any association of persons, co-operative societies

or any other undertaking. Small businesses having MSME registration enjoy various benefits under the Micro, Small and Medium Enterprises Development Act, 2006. Obtaining MSME registration or Udyog Aadhaar is not mandatory and is at the sole discretion of the Entrepreneur. However, it is recommended that most businesses obtain MSME/SSI/Udhyog Aadhar registration right after its formation to enjoy various benefits like protection against delayed payments under the MSMED Act

Documents Required for Udyam Registration?

MSME registration process is fully online, paperless, and based on self-declaration. There is no requirement of documents or proof for registering an MSME.Only the Aadhar Number will be enough for registration. PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government databases. Having PAN & GST number is mandatory from 01.04.2021.

REGISTRATION PROCES

(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) Aadhar number shall be required for Udyam Registration.

(4) The Aadhar 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).

(5) 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 Aadhar 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 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 updation process shall be liable to such penalty as specified under section 27 of the Act

REGISTRATION EXISTING ENTERPRISE

(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 in accordance with this notification.

(3) The existing enterprises registered prior to 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.