What Should MSMEs Know About Udyam Registration?

Udyam Registration, a new method for registering micro, small, and medium businesses (MSMEs), began on July 1, 2020. According to the MSME ministry, an MSME in the country will now be referred to as a ‘Udyam,’ which is closer to the concept of an enterprise.

The new definition of MSMEs:

The definition of MSMEs was amended as part of the COVID-19 assistance package known as ‘Atmanirbhar Bharat,’ to categorize them based on the company’s turnover as well as its investments.

There will be no differentiation between manufacturing and service MSMEs under the new definition.

Micro units: Those with a one-crore investment and a turnover of less than five crore rupees.

Small units: Those having a turnover of less than Rs 50 crore and investments of up to Rs 10 crore.

Medium units: Those having a turnover of less than Rs 100 crore and investments of up to Rs 20 crore.

Procedure for registering for Udyam:

Udyam registration for MSMEs may be conducted totally online using only Aadhaar and is based on self-declaration, according to a notification given by the MSME ministry.

Details on business investment and revenue connected to PAN and GST would be retrieved automatically from government databases. This system is also linked to the IRS and the GSTIN database.

Businesses with the EM-II (entrepreneurs memorandum), Udyog Aadhaar Memorandum, or any other registration granted by an MSME government authority would need to re-register.

From April 1, 2021, having a PAN and a GST number will be required.

New entrepreneurs who are not yet MSME-registered, as well as those who are EM-II or UAM-registered, can use the platform to register or re-register.

Note:

• After you’ve completed the registration process, you’ll be granted a permanent registration number.
• A certificate will be issued online once the registration process is completed.
• This certificate will feature company information as well as a dynamic QR code that will allow you to access a web page on our Portal.
• Your registration will not need to be renewed.
• Each company can only have one Udyam Registration. A single Registration may, however, include any number of activities, including production, service, or both.

The Advantages of Udyam Registration:

The following are some of the significant advantages of the Udyam registration:

• According to government statements, interest-rate subsidies or collateral-free bank loans are available.
• in the manufacturing/production sector, access to Special Beneficial Reservation Policies
• to see if you’re eligible for CLCSS (credit-linked capital subsidy scheme)
• International trade exhibitions are given special priority.
• Waiver of the government’s security deposit (EMD) while participating in a tender)
• Electricity bill discounts, barcode registration, patent registration, and NSIC performance and credit rating costs are also available.
• Stamp duty and registration fees are waived.
• Fees for ISO certification are reimbursed.
• Subsidy eligibility for the Industrial Promotion Subsidy (IPS)

For Udyam Registration, a GST Identification Number is not required:

The Modi government has taken another step toward a paperless, streamlined, and time-saving system. There is no longer a requirement for a unique Goods and Services Tax Identification Number (GSTIN) for “Udyam Registration” for Micro, Small, and Medium Enterprises (MSME).

The Ministry of MSME issued a notification on March 5, 2021, that the necessity for completing Udyam Registration will be replaced by the obligation for filing GST Returns. “The exemption from the GSTIN requirement will be governed by the terms of the Central Goods and Services Tax Act, 2017 (12 of 2017).” To register the business, the proprietor can now only utilize his or her PAN.

According to a notification released by the Modi administration on June 26, 2020, GSTIN was necessary for registration on the Udyam Registration Portal as of 01.04.2021. On the other hand, the national government received a huge number of representations from various MSME organizations.

MSME Documents:

As part of the registration process, no documents are required to be uploaded to the government web. However, for the Udyam Registration application, a firm must give the following information. The following information is needed:

• PAN (Property Identification Number)
• GST number of businesses
• Details of the business’s bank account
• Over the last two years, the company’s turnover has been increasing.
• The value of the company’s investment has been depreciated.
• The business’s address
• Type of Income tax return filed in the previous year
• Dates of incorporation/business start-up
• The type of business activity that is being performed

 

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MSME Udyam Registration Procedure:

• Registration for Udyam can be done online.
• Self-declaration is the foundation.
• It is not necessary to upload documents, certifications, papers, or proof.
• Udyam Registration Number (URN) will be assigned after a successful registration.
• An Udyam Registration certificate (E-Certificate) will be provided upon completion..
• For classification, we used a combination of investment and turnover factors.