All You Need to Know About Udyam Registration?

On June 1, 2020, the Union Cabinet approved the resources and Guidelines for Micro, Small, and Medium Enterprises. India is aiming to take the next big leap. Skilled India’s efforts towards economic infrastructural transformations have fostered a micro-entrepreneurship model and fostered a start-up culture. The young Indian entrepreneur would need a knowledgeable workforce and a skilled technical workforce that is flexible, analytical, and a driving force to gain market share. Micro, Small, and Medium Enterprises contribute significantly to the Indian economy not only in terms of Gross Domestic Product (GDP) but also in terms of exports and job creation.

Also, Read- Udyam Registration

As per Udyam Notification dated 26.06.2020, Enterprise Registration is the new process of UDYAM/Udyog Aadhar registration started by the Ministry of Micro, Small, and Medium Enterprises from 1st July 2020.

Meaning of MSME:

MSME means Micro, Small, and Medium Enterprises. As per the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006, enterprises are classified into two divisions.

a. Manufacturing enterprises – contracted in the manufacture or product of goods in any industry

b. Service enterprises – entangled in providing or rendering services.

Investment Calculations:

The computation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the earlier years filed under the Income Tax Act, 1961.

In case of a new venture, where no prior ITR is available, the investment will be based on the self-declaration of the promoter of the udyam and such exemption will expire after 31st March of the financial year in which he files his first ITR.

The composition “plant and machinery or equipment” shall have the same meaning as prescribed to it in the Income-tax Rules, 1962 made under the Income-tax Act, 1961 for plant and machinery and shall include all tangible property (other than land).

Purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or secondhand, on a self-disclosure basis, excluding Goods and Services Tax (GST), any ITR if the enterprise is a new one will be kept in

The cost of settled items particularized in section 7 to Explanation I to sub-section (1) of section 7 of the Act shall be inhibited from computing the obligation of investment in plant and appliances.

Calculation of Turnover

For the purposes of classification, export of goods or services or both shall be excluded while computing the turnover of the micro, small or medium enterprise.

The information relating to turnover and export business for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and GSTIN.

The turnover data of an enterprise that does not have PAN will be considered on a self-declaration basis for the period up to March 31, 2021, and thereafter, PAN and GSTIN will be mandatory.

Overall Criteria for Investment and Classification for Business

To classify an enterprise as micro, small or medium, a combined criterion of investment and turnover shall apply.

If an enterprise exceeds the specified maximum limit for its current category in any of the two parameters of investment or turnover, it will cease to exist in that category and will be placed in the next higher category but no enterprise will fall in the lower category. Unless it is less than the limit specified for its current category, both in terms of investment parameters as well as turnover.

All entities listed against a Permanent Account Number (PAN) with Goods and Services Tax Identification Number (GSTIN) shall be collectively treated as an enterprise and the trade and investment data for all such entities shall be clubbed and Only the total value will be considered for deciding the category as Micro, Small or Medium Enterprises.

Registration Process:

The registration on the UDYAM registration portal is paperless on the basis of self-declaration and without any filing fee.

In the case of a Proprietorship Firm, the Aadhaar Number will be that of the Proprietor, that of the Managing Partner in the case of the Partnership Firm, and Karta in the case of Hindu Undivided Family (HUF).

In case of a company or limited liability partnership or co-operative society or society or trust, the business or its authorized signatory shall render its GSTIN and PAN along with its Aadhaar number.

If an enterprise is duly registered as an enterprise with PAN, then any deficiency in information in previous years, when it did not have PAN, shall be filled on the basis of self-declaration.

No enterprise shall file for more than one udyam registration, multiple activities including manufacturing or service may be combined in one udyam registration.

On registration, an enterprise will be assigned a Permanent Identification Number which will be known as “Udyam Registration Number”.

On completion of the registration process, an e-certificate i.e. udyam Registration Certificate will be assigned.

Registration for existing enterprises:

All existing enterprises registered under EM-Part-II or UAM shall be re-registered on the udyam registration portal on or after July 1, 2020.

All enterprises registered as of 30th June 2020 will be reclassified as per this notification.

Existing enterprises registered before 30th June 2020 will be accurate only for the limit up to 31st March 2021.

An enterprise registered with any other organization under the Ministry of Micro, Small, and Medium Enterprises shall register itself under the udyam Registration.

Updation of Information in Classification and Transition Period:

An enterprise with an enterprise registration number shall update its information online in the udyam registration portal including details of ITR and GST returns for the previous financial year and other additional information required on the basis of self-declaration.

Failure to update the relevant information within the specified period in the Online udyam Registration Portal will make the enterprise liable for suspension of its status.

Based on the data submitted or collected from government sources including ITR or GST returns, the distribution of the enterprise will be updated.

In case of graduation (from lower to higher grade) or reverse-graduation (moving to lower grade) of an enterprise, a communication will be sent to the enterprise about the change in status.

In case of upward change and consequent reclassification in case of investment in plant and machinery or equipment or turnover or both, an enterprise shall sustain its present position till the end of one year from the end of the year of enrollment.

In case of reverse-graduation of the enterprise, whether as a result of re-classification or due to actual change in expense in plant and machinery or equipment or turnover or both, and whether the industry is registered under the Act, the industry shall proceed till the end of the financial year. Its operation. The existing category will continue and the benefit of changed status will be allowed only from 1st April of the financial year in which such change took place.

Enterprises Facilities and Grievance Redressal:

The Champions Control Rooms functioning at various institutions and offices of the Ministry of Micro, Small and Medium Enterprises including Development Institutions (udyam-DIs) will act as a single-window system to facilitate the registration process and promote Micro, Small and Medium Enterprises . in every possible way.

District Industries Centers (DICs) will also operate as single-window facilitation conformity in their districts.

Any person who is not able to file enterprise registration for any reason including lack of Aadhaar number can submit his/her Aadhaar Enrollment Identity Slip or copy of the Aadhaar Enrollment Request or Bank Photo Pass in any of the above single windows for enterprise registration purposes. could. You can contact the system. Book or Voter ID Card or Passport or Driving License and Single Window System will facilitate the process including getting Aadhaar numbers and then the further process of enterprise registration.

In case of any discrepancy or complaint, the General Manager of the District Industries Center of the concerned district shall check for verification of the details of the enterprise registration submitted by the enterprise and thereafter forward the matter to the Director or Director along with necessary comments. Commissioner or the concerned State Government. The Secretary of Industry, who after issuing notice to the enterprise and giving an opportunity to present its case and based on the findings, may amend or recommend the particulars to the Ministry of Micro, Small or Medium Enterprises, Government of India. , to cancel the enterprise registration certificate.

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