New online system of MSME/Udyam Registration launched by Union MSME Ministry, w.e.f. 1st July, 2020, has stood the test of Time & Technology as more than 11 lakh MSMEs have successfully registered themselves by now.
It may be stated that Ministry of MSME had revised the definition of MSMEs and the process of registration w.e.f. 1st July, 2020. It also launched a new portal for MSME/Udyam registration ). Since then, the portal is working smoothly. In a major first, this portal is seamlessly integrated with CBDT and GST networks as also with the GeM. It may be noted that through this integration, now MSME registration is a totally paperless exercise.
Definition of MSME
- An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration'
- A permanent registration number will be given after registration.
- After completion of the process of registration, a certificate will be issued online.
- This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
- There will be no need for renewal of Registration.
- Our single window systems at Champions Control Rooms and at DICs will help you in the process.
- The registration Process is totally free. No Costs or Fees are to be paid to anyone.
- MSME Registration is free, paperless and based on self- declaration
- MSME registration process is fully online, paperless and based on self-declaration.
- No documents or proof are required to be uploaded for registering an MSME.
- Only Adhaar Number will be enough for registration.
- PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases.
- Our online system will be fully integrated with Income Tax and GSTIN systems.
- Having PAN & GST number is mandatory from 01.04.2021.
- Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
- No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
Process for Udyam Registration
- The form for registration shall be as provided in the Udyam Registration portal.
- There will be no fee for filing Udyam Registration.
- Aadhaar number shall be required for Udyam Registration.
- The Aadhaar 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).
- In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
- 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.
- 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.
- 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.
- 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.
- All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
- 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.
- An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
As per the analysis of the registrations till October 31, 2020 (more than 10 Lakh), the trend and broad picture is as follows:-
- 3.72 lakh enterprises have registered under the Manufacturing category whereas 6.31 lakh enterprises under Service sector.
- The share of Micro Enterprises is 93.17% whereas Small and Medium Enterprises are 5.62% and 1.21% respectively.
- 7.98 lakh enterprises are owned by Male whereas 1.73 lakh enterprises by Female entrepreneurs.
- 11,188 enterprises are owned by Divyangjan entrepreneurs.
- The Top 5 Industrial sectors of registrations are – Food Products, Textile, Apparel, Fabricated Metal products and Machinery & equipment.
- 1,01,03,512 persons have been given employment by these registered units.
- 5 leading States for Udyam registrations are Maharashtra, Tamil Nadu, Rajasthan, Uttar Pradesh and Gujarat.
- Registration without PAN is permitted upto 31.03.2021 as a transitional arrangement.
- Similarly, Registration without GST number is also permitted upto 31.03.2021 as a transitional arrangement.
Enterprises which are not yet registered, should register themselves to avail the benefits of Ministry of MSME and other Government agencies. The registration is free of cost and should be done only on the Government portal showing .gov.in.