MSME – Udyam Registration

Vide notification dated 26th June 2020, the Ministry of Micro, Small and Medium Enterprises notifies revised criteria for classifying the enterprises as Micro, Small and Medium Enterprises (i.e., MSME) and lay down the form and procedure for ‘Udyam Registration’. The present article briefly analysis the said notification.

Benefits of Udyam Registration:

  • MSME can register on GeM portal – sell products and services to Govt. department
  • Register on TReDS – trade the receivables – improve cash flow
  • 1 percent Exemption on interest rate on Bank Overdraft (OD)
  • Avail benefit of credit guarantee scheme
  • Subsidy and incentive of various Govt. Schemes
  • Easy Bank Loan upto 1 Cr without Collateral/ Mortgage
  • And Many More…

Udyam Registration

Udyam Registration is a new and simplified process that helps your business get the identity of an MSME.

It is mandatory only if you want to avail the Government schemes launched specially for Micro, Small and Medium Enterprises.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: After the payment is made successfully document(AADHAAR CARD & PAN CARD) submission will be required.   भुगतान सफलतापूर्वक हो जाने के बाद दस्तावेज़ (आधार कार्ड और पैन कार्ड) जमा करना आवश्यक होगा।

Revised Classification

The basis for classification of an enterprise as a micro, small and medium enterprise is-

Classification Investment in plant and machinery or equipment Turnover
Micro enterprise Not more than INR 1 Crore Not more than INR 5 Crore
Small enterprise Not more than INR 10 Crore Not more than INR 50 Crore
Medium enterprise Not more than INR 50 Crore Not more than INR 250 Crore

Following points are to be taken care of while calculating the investment in plant and machinery or equipment and turnover for the purpose of classification-

  • The investment in plant and machinery or equipment shall be considered as per the Income Tax Return of the previous year.
  • In the case where there is no prior income tax return, the investment in plant and machinery or equipment shall be based on self-declaration of the promoter of the enterprise. Here, the invoice value of the plant and machinery or equipment excluding Goods and Service Tax is to be self-declared.
  • While calculating turnover for the purpose of classification, export turnover of goods or services or both shall be excluded.
  • Turnover as per Income Tax Act or the Central Goods and Service Tax Act shall be considered.

Udyam registration of new enterprise

In order to register under Udyam Registration Portal, the new enterprise is required to follow the below steps-

  • The new enterprise willing to establish as an MSME needs to apply for online Udyam Registration in Udyam Registration Portal.
  • The application is based on self-declaration, and there is no further requirement to upload any documents, certificates, papers, or proofs.
  • On successful submission of application, the enterprise will be assigned ‘Udyam Registration Number’ (i.e., permanent identity number).
  • On completion of the registration process, the enterprise shall be issued a ‘Udyam Registration Certificate’.
  • Other points to be kept in mind-
  • Udyam registration is free of cost.
  • Aadhaar number is mandatory for obtaining udyam registration. Following aadhaar number is required based on the type of firm-
Type of firm The person whose Aadhaar number is required
Proprietorship firm Proprietor
Partnership firm Managing partner
Hindu Undivided Family Karta
Company or a Co-operative Society or a Trust or a Limited Liability Partnership Authorized signatory

Importantly, an enterprise can file only one Udyam registration. Additionally, a multiple number of activities of the enterprise i.e., manufacturing, services or both can be added in one Udyam registration.

Udyam registration for existing enterprise

The existing enterprises registered either under EM-Part – II or UAM or registered with any other organization under the Ministry of Micro, Small and Medium Enterprises are required to register again on the Udyam Registration Portal. Such enterprises are required to apply and obtain Udyam Registration on or after 1st July 2020.

The enterprises registered prior to 30th June 2020 should note the following points-

  • Such enterprises shall be re-classified based on the revised criteria notified under notification dated 26th June 2020; and
  • Such enterprises registered prior to 30th June 2020 shall be valid only till 31st March 2021.

Updation of information in Udyam registration

The enterprise already having the Udyam registration number needs to update its information online on the Udyam Registration Portal. In case of failure, the enterprise would be liable for suspension of its status.

The classification of the enterprise shall be updated based on the information collected from the income tax return or the goods and service tax return. The updation, if any, and its consequence are explained hereunder-

Type of updation Consequence of updation
Upward graduation The enterprise will continue to maintain its prevailing status till the expiry of one year from the close of the year of the registration.
Downward graduation The enterprise will continue its prevailing status till the close of the financial year. The benefit of the changed status will be available from subsequent financial year.

MSME / UDYAM REGISTRATION PROCESS

You can complete the Udyam Registration process by visiting UdyamitaHelpline.com and following the three simple steps listed below.

Step 1 – Submission 

Just fill the complete form below as per the information required for the further processing 

 

Step 2 – Computation

Your application will be submitted online by our Udyamita Expert.

 

Step 3 – Certificate

MSME Certificate will be sent to your registered email address after it has been approved.

How to Fill Instructions

Udyam Registration
Frequently Asked Questions

MSME Registration / Udyog Aadhar belong to the old system of registration where a UAM Number was generated. With effect from 1st July 2020 the MSME Registration / Udyog Aadhar has been migrated to the new system called Udyam Registration.

It is mandatory to migrate to Udyam Registration even if you have already obtained MSME Registration / Udyog Aadhar. W.e.f 1st July 2020 MSME Registration / Udyog Aadhar are no longer valid and you need to obtain Udyam Registration.

Any person who has an Aadhaar card linked with a valid mobile number can obtain the registration for their business.

Your Udyam Registration number will be generated immediately and will be provided to you at the same time. The Registration Certificate takes time as the concerned authorities validate your information before generating the certificate. The time taken to validate your details is approximately 7 to 10 days.

Normally it takes around 1 to 2 weeks to generate the Udyam Certificate after generating your Udyam Registration Number.

Every applicant must have a valid Aadhaar Card as well as a PAN Number of the Proprietor or the Business in order to make an application.

Yes, multiple registrations can be obtained under the same Aadhaar card, but we need to keep in mind that only ONE Registration is given against every PAN card.

Udyog Aadhar Registration is no longer valid. You need to migrate to the new system of Udyam Registration. Simply fill the form above and we will guide you further.

The new registration certificate contains the details of the applicant as well as their business and business activity. It also contains a QR Code which will be used by the government to validate the certificate whenever necessary. You can check a sample copy of the certificate by visiting: https://udyamihelpline.com/sample-certificate

You can make changes or corrections to your Udyam Registration, but please note that this cannot be done to all the information on your Certificate. To know more please visit: https://udyamihelpline.com/edit-udyam-registration

For every PAN number ONE registration will be allotted. You can add addresses and details of every branch while obtaining your registration.

Yes, with the recent amendments to the Udyam Registration process traders can apply for Udyam Registration and avail benefits granted under it.

If we have processed your registration then you must have received a link along with your Registration Number from where you can download the same. For more information you can visit: https://udyamihelpline.com/print-udyam-certificate

Customers Testimonial

I tried a lot to extract my Udyog Aadhar certificate from my Aadhar card but could not get it. I would like to thank Udyamita Helpline head team supported me a lot

Shiv Kumar Bhardwaj
Director / OB Pizza Pvt Ltd

I was registering for Udyog Aadhar, but OTP was not coming on my number. I get my registration in 2 days through Udyamita Helpline

Yashi Malhotra
Founder / Trendz India

If you are not able to register from anywhere because of your absence, then only to whom will you go to the helpline, their team will get you registered in 2 days.

Arjun Singh
Accounts Head / JDM

Thank you Udyamita Helpline you got me Udyam Registration as soon as possible, so that I can register my GST registration and current bank account

Navneet Bakshi
Director / The Modern School