Based on new recommendations received from the Advisory Committee for the MSME Udyam Registration, the Central Government has introduced new and specific criteria for the classification of Micro, Small, and Medium Enterprises for the filing of memorandum (i.e. Udyam Registration previously called Udyog Aadhaar) w.e.f. 1st July 2020 on its new portal named Udyam Registration Portal. Furthermore, India’s Finance Minister, Nirmala Sitharama, announced this new registration process, which is one of the primary components of Prime Minister Narendra Modi’s relief package for MSMEs in the wake of the novel coronavirus outbreak. MSME registration is also free, paperless, and self-declarative.
The following are the primary features of the new MSME Udyam Registration:
- On a self-declaration basis, one can easily file for MSME Udyam Registration online.
- The other papers, with the exception of an Aadhaar Card, will not be required to be submitted.
- Udyam Registration is now linked to the IT and GST systems.
Process for New Entrepreneurs to Register:
If you have never registered as an MSME previously, follow the steps below:
Step 1: Go to the udyam registration online portal.
Step 2: Enter your Aadhaar number, which is 12 digits long.
Step 3: Fill in the entrepreneur’s name as it appears on the Aadhaar card.
Step 4: Carefully read all of the instructions before selecting the tick mark for declaration.
Step 5: When you’re finished, select the ‘Validate and Generate OTP’ button.
Step 6: For verification, an OTP will be given to your registered mobile number.
Step 7: Click the ‘Validate’ button after entering the One-Time Password.
Step 8: Once you’ve completed this, your Aadhaar Card will be successfully authenticated, and you’ll need to fill in the remaining information, such as:
- Organizational Structure (for example partnership)
- Yes/No on the PAN Card
- If you answered yes, provide your PAN number.
Then choose the declaration and press the ‘Validate’ button.
Step 9: The validity of your PAN will be checked. You should include additional relevant information, such as:
- Have you filed your ITR for the prior year- yes/no
- Do you have a GSTIN number yes/no.
Step 10: If the entrepreneur does not have a valid PAN card, he or she must input the entrepreneur’s name.
Step 11: Fill in your phone number and email address.
Step 12: Fill in the social category, gender, and whether or not the employee is differently-abled (yes/no), as well as the company’s name, the plant’s name, and the unit’s name.
Step 13: Enter the Plant’s location (s)
Step 14: Enter Enterprise’s official address.
Step 15: You must also provide the prior EM-II/UAM registration number, the enterprise’s status, bank information, the unit’s principal activity, the National Industrial Classification (NIC) Code for Activities, and the number of employees.
Step 16: Fill in the plant and machinery investment, turnover, and other key facts as shown in the image below.
Step 17: Tick the declaration and click the ‘Submit and Get final OTP’ button after you’re finished.
Step 18: Enter the OTP on your registered mobile number once more. Your registration for Udyam will be completed.
Migrating to Udyam: A Step-by-Step Guide (Re-Register):
To re-register for Udyam Registration, follow the steps outlined below:
Step 1: Go to the Udyam Registration website.
Step 2: Select udyam Re-Registration from the drop-down menu.
Step 3: You’ll be redirected to a new page where you can enter your Udyog Aadhaar Number and choose between OTP choices like OTP on Mobile or OTP on Email.
Step 4: Select ‘Validate and Generate OTP’ from the drop-down menu.
Step 5: Enter the OTP that was sent to your registered cell phone, and then proceed.
Step 6: Validation of your Udyog Aadhaar Number
Online Method for Udyog Aadhar Correction:
To update your Udyog Aadhar, follow the procedures below:
Step 1: Go to the udyam registration portal.
Step 2: From the drop-down option, choose “Update udyam registration.”
Step 3: You will see two options; select the ‘Udyog Aadhar Update’ option.
Step 4: A new page for MSME Udyog Aadhar Update will display on the screen.
Step 4: For Udyog Aadhar Registration Update, enter your 12-digit UAM number.
Step 5: Select one of the OTP alternatives, such as OTP by mobile number or OTP via email address.
Step 6: In the box provided, enter the verification code.
Step 7: Select ‘Validate & Generate OTP’ from the drop-down menu.
Step 8: On the appropriate choice, enter the OTP received.
Step 9: After the MSMEe udyog Aadhaar has been confirmed, the appropriate adjustments can be made.
What are the steps to getting an MSME certificate?
For Udyog Aadhar certificate download using UAM number, follow the steps below:
Step 1: Go to the udyam registration website.
Step 2: On the website’s homepage, select the ‘Print’ option.
Step 3: You will be led to a new page where you may obtain the Udyog Aadhaar Memorandum.
Step 4: For MSME Udyog Aadhar download, enter your UAM No.
Step 5: Enter your phone number as it appears on your Udyog Aadhaar card.
Step 6: Press the ‘Submit’ button.
Step 7: An OTP will be issued to the phone number you provided during registration.
Step 8: For the validation process, enter the OTP.
Step 9: The Udyog Aadhaar will be downloaded in pdf format.
Udyam Registration Update:
You can amend the Udyam Registration form from the new Udyam Registration Portal if there are any problems or if you need to update some details. However, in order to update details, your cellphone number must be registered with Aadhaar, as it requires a one-time password (OTP) for verification.
Udyam Registration Printing:
You can print your Udyam Registration Certificate, Udyam Registration application, Udyog Aadhaar Memorandum (UAM), and Udyog Aadhaar Application via the new Udyam registration portal with the use of a verifying one-time password issued to your registered mobile number.
When enrolling as a new entrepreneur or re-registering with Udyam, bear the following points in mind:
If you’re a first-time business owner, consider the following:
- The registration form must follow the instructions on the Udyam Registration portal.
- Udyam registration cannot be completed without a 12-digit Aadhaar number.
- The proprietor’s Aadhaar number, or that of the controlling partner in the case of a partnership firm, or that of a karta in the case of a Hindu Undivided Family (HUF), must be used.
- In the case of a Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust, the organization or its authorized signatory must give GSTIN PAN and Aadhaar Number.
- If a company is legally registered as an Udyam with PAN, any data gaps from past years when it did not have a 10-digit PAN will be filled in using self-declaration.
- An enterprise may not file more than one Udyam Registration. However, any number of manufacturing, service or both operations may be listed or added in a single Udyam Registration.
- If someone willfully misrepresents or tries to suppress self-declared facts and figures appearing in the Udyam Registration/updation procedure, they will be subject to the punishment provided in section 27 of the Act.
If you re-register for Udyam Registration, you will receive a discount:
- On or after July 1, 2020, all current firms registered under EM–Part-II or UAM must complete the Udyam Registration on the new platform.
- Reclassification of existing businesses in compliance with the new MSME registration rules is required until June 30, 2020.
- Existing businesses that were registered before the 30th of June, 2020, will only be valid until the 31st of March, 2021.
- If an entity has already registered with another Ministry of Micro, Small, and Medium Enterprises organization, it must re-register with Udyam Registration.
The Advantages of Udyam Registration:
The following are the advantages of Udyam Registration:
- Assists in obtaining government contracts
- Bank loans are readily available at a reasonable rate of interest (up to 1.5 percent lower than interest on regular loans)
- Udyam is eligible for a number of tax breaks.
- Obtaining permits, permissions, and registrations is simple, regardless of the type of business.
- Credit is easy to get by, and the interest rates are low.
- Having an Udyam Registration Certificate entitles you to the tariff, tax, and capital subsidies.
- As many rebates and concessions are applied to the cost of a patent or the cost of establishing an industry, the cost of a patent or the cost of establishing an industry is reduced.
Calculation of Plant and Machinery/Equipment Investment
The following formula is used to calculate the investment in plant and machinery or equipment:
- The calculation is based on prior years’ Income Tax Returns (ITRs) filed under the Income Tax Act of 1961.
- If no prior ITR is available (i.e. in the case of a new business), the investment will be based on the promoter’s self-declaration, which will be valid until the 31st March of the financial year in which the first ITR is submitted.
- The term ‘plant and machinery/equipment of the business shall be interpreted to mean the same thing as it is defined in the Income Tax Rules, 1962, enacted under the Income Tax Act, 1961, and will include all physical assets (except for land and building, furniture and fittings)
- If the firm is a new one with no ITR, the purchase value (i.e. the invoice) of the plant and machinery/equipment purchased first hand or second hand, minus Goods and Services Tax (GST), will be taken into account on a self-disclosure basis.
The following is how turnover is calculated:
- When calculating the turnover of any firm, whether micro, small, or medium, for classification reasons, exports of products or services, or both, must be excluded.
- The Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN must be linked to information about an enterprise’s turnover and exports turnover.
- For the period up to 31st March 2021, the data pertaining to the turnover of such businesses that do not have a valid PAN will be taken into account on the basis of self-declaration, and thereafter, PAN and GSTIN will be required.
Suggested Read- print udyam registration certificate
Note: PAN and GSTIN are required for Udyam Registration as of April 1, 2021. To avoid suspension of Udyam Registration, it is recommended that you apply for a PAN and GSTIN right away and update them on this website before December 31, 2021.