UDYAM REGISTRATION FOR MSMEs

[Mr. M. GOVINDARAJAN]

Advisory Committee

Section 7(2) of MSME Act, 2006 provides that the Central Government shall, by notification, constitute an Advisory Committee.  The Central Government shall, prior to classifying any class or classes of enterprises obtain the recommendations of the Advisory Committee.   The Advisory Committee shall examine the matters referred to it by the Board in connection with any subject referred to and furnish its recommendations to the Board.   The Advisory Committee shall communicate its recommendations or advice to the Central Government.    The Central Government, after obtaining the recommendations of the Advisory Committee in this behalf, hereby notifies certain criteria for classifying the enterprises as micro, small and medium enterprises and specifies the form and procedure for filing the memorandum (Udyam Registration‖), with effect from the 1st day of July, 2020,

Classification of Enterprises

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria-

• a micro enterprise, where the investment in plant and machinery or equipment does not exceed ₹ 1 crore  and turnover does not exceed ₹ 5 crores;
• a small enterprise, where the investment in plant and machinery or equipment does not exceed ₹ 10 crores  and turnover does not exceed ₹ 50 crores; and
• a medium enterprise, where the investment in plant and machinery or equipment does not exceed ₹ 50 crores  and turnover does not exceed ₹ 250 crores.

If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

Udyam Registration

Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal.  Only a self declaration is enough and no other documents are required to be uploaded for registration.  This will be effect from 01.07.2020. 

Before that, with effect from September 2015 Udyog Aadhaar registration was in vogue.  Nearly 1.02 crores applicants have applied for registration as MSME.

Registration procedure

The Udyam portal may start functioning with effect from 01.07.2020.  The following is the procedure involved in registration under Udyam registration-

• The form for registration shall be as provided in the Udyam Registration portal.
• No registration fee is payable.
• For registration aadhaar number of the applicant is required.
• 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.
• In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized 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.  However any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
• The Champions Control Rooms functioning in various institutions and offices of the Ministry of Micro, Small and Medium Enterprises including the Development Institutes (MSME-DI) shall act as Single Window Systems for facilitating the registration process and further handholding the micro, small and medium enterprises in all possible manner.
• On registration, an enterprise (referred to as ―Udyam‖ in the Udyam Registration portal) will be assigned a permanent identity number to be known as ―Udyam Registration Number.
• An e-certificate, namely, ―Udyam Registration Certificate shall be issued on completion of the registration process.

Grievances

Any person who is not able to file the Udyam Registration for any reason including for lack of Aadhaar number, may approach any of the above Single Window Systems for Udyam Registration purposes with his Aadhaar enrolment identity slip or copy of Aadhaar enrolment request or bank photo pass book or voter identity card or passport or driving licence and the Single Window Systems will facilitate the process including getting an Aadhaar number and thereafter in the further process of Udyam Registration.

Complaint

In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an enquiry for verification of the details of Udyam Registration submitted by the enterprise and thereafter forward the matter with

necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government who after issuing a notice to the enterprise and after giving an opportunity to present its case and based on the findings, may amend the details or recommend to the Ministry of Micro, Small or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate.

Registration of existing enterprises

• All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 01.07.2020.
• All enterprises registered till 30th June, 2020, shall be re-classified 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 31.03.2021.

Updation

An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the income tax return and the GST Return for the previous financial year and such other additional information as may be required, on self declaration basis.   Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.  Based on the information furnished or gathered from Government’s sources including income tax return or GST return, the classification of the enterprise will be updated.   In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise, a communication will be sent to the enterprise about the change in the status.

Penalty

Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be punishable-

• in the case of the first conviction, with fine which may extend ₹ 1,000/-; and
• in the case of second or subsequent conviction, with fine which shall not be less than ₹ 1,000/-  but may extend to ₹ 10,000/-.

Discussions to this article

[Harsh Anand]

Sir

If I am not having GST registration,then how can we register Udyan.

Is this possible that we can registered with udyog adhaar without GST registration

[DR.MARIAPPAN GOVINDARAJAN]

You cannot register with Udyog Aadhaar Number. It is a separate new procedure.

[Harsh Anand]

Is without GST Number or registration, is this possible to register Udyam

[DR.MARIAPPAN GOVINDARAJAN]

GST registration is a separate procedure. But for existing MSME it should be checked with online portal.

[RAMACHANDRA K M]

We have corporate and registered office in Bengaluru. We have six factories in different states with GSTINs having common PAN. Each factory/ unit has separate UAN now. All the units put together, the investment in Plant and Machinery is ₹ 22 crore and the turnover is ₹ 157 crore. Based on this we are a medium enterprise. Please clarify whether we should seek NEW single registration for entire Company/ all the units OR existing six units are to be re-registered giving the reference of existing UANs

[giri gattupalli]

respected sir

whether doctors can register under udyam

please discuss

[DR.MARIAPPAN GOVINDARAJAN]

Doctors are not eligible.

[DR.MARIAPPAN GOVINDARAJAN]

Dear Ramachandran,

In my view your conclusion is correct.

[giri gattupalli]

respected sir

in udyam registration form there are options provided for health sevices. now medical hospitals and diagnostic centres can register under udyam msme .please discuss

giri