MSMEs or Micro, Small, and Medium Enterprises contribute primarily to the socio-economic development of the country. MSMEs are governed by the Ministry of Micro, Small & Medium Enterprises in India and are also required to be registered under the Micro, Small and Medium Enterprises Development Act to avail benefits.
What are Micro, Small and Medium Enterprise?
| MSME CLASSIFICATION | |||
| Classification | Micro | Small | Medium |
| Manufacturing & Service | Investment in Plant & Machinery Equipment < Rs. 1 Cr And Annual Turnover< Rs. 5 Cr | Investment in Plant & Machinery Equipment < Rs. 10 Cr And Annual Turnover< Rs. 50 Cr | Investment in Plant & Machinery Equipment < Rs. 50 Cr And Annual Turnover< Rs. 250 Cr |
Registration Process
(1) The form for registration shall be as provided in the UdyamRegistration portal.
(2) Aadhaar number shall be required for Udyam Registration.
(4) The Aadhaar number shall be of the proprietor in the case ofa proprietorship firm, of the managing partner in the case of apartnership firm and of a karta in the case of a Hindu UndividedFamily (HUF).
(5) In case of a Company or an Limited Liability Partnership ora Cooperative Society or a Society or a Trust, Aadhaar number of authorised signatory along with GSTIN and PAN of company needs to be provided.
(6) In case an enterprise is duly registered as an Udyam withPAN, any deficiency of information for previous years when itdid not have PAN shall be filled up on self-declaration basis.
(7) No enterprise shall file more than one Udyam Registration:Provided that any number of activities including manufacturingor service or both may be specified or added in one UdyamRegistration.
(8) Whoever intentionally misrepresents or attempts tosuppress the self-declared facts and figures appearing in theUdyam Registration or updation process shall be liable to suchpenalty as specified under section 27 of the Act.
Registrationof Existing Enterprises
(1) 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.
(2) All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification.
(3) 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.
(4) An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
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Posted by:
CA Mitika Batta
AKGVG & Associates