The new online MSME/Udyam Registration system launched by the Union MSME Ministry on July 1, 2020, has proven to be a success, with more than 11 lakh MSMEs successfully registering.
It should be noted that, as of July 1, 2020, the Ministry of MSME has changed the definition of MSMEs and the registration process. It also created a new registration site for MSME/Udyams). This portal is the first of its kind to be completely linked with the CBDT and GST networks, as well as the GeM. It should be emphasised that, as a result of this integration, MSME registration is now completely paperless.
Also, Read- how to print udyam certificate
Definition of MSME:
The following criteria shall be used to classify an enterprise as a micro, small, or medium enterprise:
- a micro-enterprise with a plant and machinery or equipment investment of less than one crore rupees and a turnover of less than five crore rupees;
- a small business with a plant and machinery or equipment investment of less than one crore rupees and a turnover of less than five crore rupees;
- a medium-sized business with an investment in plant and machinery or equipment of not more than fifty crore rupees and a turnover of not more than 250 crore rupees.
Brief Description of Undyam Registration:
- An enterprise shall be known as Udyam for the purposes of this procedure, and its registration process will be known as ‘Udyam Registration.’ After registration, a permanent registration number will be provided.
- A certificate will be provided online when the registration procedure is completed.
- This certificate will include a dynamic QR code that can be used to access our Portal’s web page as well as information about the company.
- Registration will not need to be renewed.
- In the process, our single-window systems in Champions Control Rooms and DICs will assist you.
- The registration procedure is completely free of charge. There are no fees or costs to be paid to anybody.
- MSME registration is free, paperless, and self-declaratory. The MSME registration procedure is entirely online, paperless, and self-declaratory.
- There is no need to provide any papers or evidence while registering an MSME.
- Only your Aadhaar number is required for registration.
- Data on business investment and turnover, as well as PAN and GST-related data, would be automatically obtained from government databases.
- The Income Tax and GSTIN systems will be completely linked with our online system.
- A PAN and a GST number will be necessary from April 1, 2021.
- Re-registration is required for those with an EM-II or UAM registration, as well as any other registration issued by a Ministry of MSME authority.
- There may only be one Udyam Registration per company. However, any number of activities, including production, service, or both, can be defined or added to a single Registration.
Process for Udyam Registration:
- Udyam Registration will require an Aadhaar number.
- The Aadhaar number of a proprietorship company is the owner’s, a partnership firm’s controlling partner is the controlling partner, and a Hindu Undivided Families karta is the karta (HUF).
- If you’re a Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust, you’ll need to submit your GSTIN, PAN, and Aadhaar number.
- Any information gaps from past years when the entity did not have a PAN must be filled out on a self-declaration basis if the entity is legally registered as an Udyam with a PAN.
- Any number of operations, including production, service, or both, may be included or added to a single Udyam Registration, but no firm may submit more than one Udyam Registration.
- Anyone who willfully misrepresents or tries to hide self-declared facts and figures in the Udyam Registration or updation procedure will be subject to the penalties set out in section 27 of the Act.
Udyam registration benefits:
The Udyam registration certificate holder may also take use of the same perks, which would be beneficial to them.
- Request a waiver of stamp duty and registration expenses.
- Overdrafts are exempt from a 1% interest charge.
- Eligible for NSIC and credit ratings subsidy, as well as IPS subsidy.
- Payment for getting the ISO certificate will be reimbursed.
- MSME and SSI have reserved items for exclusive production.
- Take advantage of the Excise Exemption Scheme.
- Get a break when applying for government contracts.
- Exemption from direct taxation.
- Bank Mortgages and Bank Business Loans are simple to obtain.
- Patent registration is eligible for a subsidy
- Subsidy Eligibility for the Industrial Promotion Subsidy (IPS)
- Special attention is paid to international trade fairs.
- Electricity bill reductions