Following is the classification of such ventures as per the latest guidelines:
Micro, Small and Medium Enterprises introduced a new mechanism to register and classify MSMEs. Known as Udyam registration, it lets new and existing businesses register themselves on the MSME portal.
|Classification||Investment in plant, and equipment||Turnover|
|Micro enterprise||Less than INR10000000||Less than INR50000000|
|Small enterprise||Less than INR100000000||Less than INR500000000|
|Medium enterprise||Less than INR500000000||Less than INR250000000|
The Government has removed the difference between enterprises in the manufacturing industry and those in the service sector. The only difference at present is based on the investment and turnover. Any new or existing venture can have Udyam registration as per the table given above.
|Copy of the Aadhaar card||Individual / Proprietor / Partners / Directors duly linked with an active mobile number|
|Copy of PAN card||Individual / Proprietor / Partners / Directors ( linked with Aadhaar|
|MSME certification||If already registered|
|PAN card||Of the company|
|GST number||Of the company|
|Contact information of the company||Phone number, email ID etc.|
|Details of the bank account||Of the company or the individual; either savings or current account|
|ITR statements||Including losses and profits|
|Information on the units of the company||If the company registration and the name of its units are the same or different. If different, details to be included.|
|Category of the individual||SC, ST, OBC etc.|
|Specify the disability||If there is any|
|Information on the desired status||Either as a manufacturing unit or service provider or as both|
|Information on employees||Number, details on their gender etc.|
|Information on the willingness to participate||In the Gem portal|
Enterprises types for registration
Below mentioned are the enterprise types for registration that are applicable to service sectors as well as other firms. They are:-
- Micro Enterprises – For those firms having a turnover between Rs 1 Cr and up to a maximum of Rs 5 Cr
- Small Enterprises – For those firms having a turnover between Rs 10 Cr and up to a maximum of Rs 50 Cr
- Medium Enterprises – For those firms having a turnover between Rs 50 Cr and up to a maximum of Rs 250 Cr
Details about the registration process
Any individual planning to start a micro, small or medium enterprise may apply for Udyam registration in the scheme’s official portal. You don’t have to upload any document, the entire process will be based on your self-declaration. Upon registration, the individual is given an identification number. This will be called Udyam registration number. This number is permanent. Upon completion of the process, the applicant receives a virtual certification known as Udyam registration certificate.
All units that have GSTIN (Goods and Services Tax Identification Number) given against one PAN number will be treated as one. The investment and turnover of such units are calculated as the average of all of them.
Your self-declaration is valid only till the 31st of March 2021. From that day, GSTIN is a must.
Udyam registration form is available on its official portal. There is no registration fee for the process. Aadhaar number is a must here. You may do as per the instructions you receive on the portal in this regard. If the venture is a limited liability partnership, trust or a society, it should furnish the details of the authorized dignitary’s Aadhaar and GSTIN.
If the venture registers itself along with the PAN number, a self-declaration will compensate for insufficient information.
No venture is allowed to have more than one Udyam registration.
Any venture that misrepresents information offered in the self-declaration is liable for the penalties given in Section 27 of the MSMED Act. All ventures that are registered with EM–Part-II or UAM are required to have Udyam registration on or after July 1st.
Udyam Registration Process
This process of registration through the Udyam portal is very easy, and further, the form fill-up process is quite straightforward as well. This system has rejuvenated, and also takes less time as compared to the old process which has been discarded. This is essential to understand that this MSME Registration is completely free and there is no charge taken by the website as any fee for issuance of any registration certificates. As things are quite efficient now, here is a very simple step-by-step process for getting registration under Udyam. It is:-
1: Go to the official website – https://udyamregistration.gov.in/
Firstly, to get the business registered online you will need to visit the official government website of Udyam Registration. Next click on the button for new entrepreneurs that are not registered as MSME. You can do this by clicking on the “For new Entrepreneurs who are not registered yet as MSME” button.
2: In the second step you need to enter your personal information –
Initially, a person would be required to input one’s name and their twelve-digit Aadhar number. Next, select the button “Validate & Generate OTP.” After which you would receive another OTP on the mobile number which is registered on Aadhar. Input this OTP.
On a special Note: For all enterprises, the Aadhaar number is mandatory for the Udyam Registration, of the proprietor if he/she owns a proprietorship firm; the partner who is managing if it is a partnership firm; the Karta if it is a Hindu Undivided Family (HUF); the authorized signatory if it is a Limited Liability Partnership, or a Society, Company and or a Trust or Cooperative Society.
3: Verification of PAN
You need to choose the type of the firm and then enter the PAN no then select the validate button. Validation of PAN will take place.
For all enterprises, the Aadhaar number along with the PAN number and signature is mandatory for the Udyam Registration, of the proprietor if he/she owns a proprietorship firm; the partner who is managing if it is a partnership firm; the Karta if it is a Hindu Undivided Family (HUF); the authorized signatory if it is a Limited Liability Partnership, or a Society, Company and or a Trust or Cooperative Society.
Step 4: Adding Details of Correspondence is the next step
Once all the details which are mentioned above are filled in, the next thing which one needs to offer would be the full postal address of this enterprise/company/entity. Further, the info about their district of the company, its pin code, the state, their email address, and the mobile number.
Step 5: Fill up all the Bank Details
One would need to enter their firm’s bank account number which is active along with the IFSC code of that branch in which the account is opened. If one doesn’t have the IFSC code of that branch, you can get it from the passbook of the bank or through its website.
Step 6: Details of the Enterprise
One needs to mention the main activity of their enterprise, it can be “manufacturing” or “services”. One is required to submit the number of all the persons that are employed under the NIC or National Industry Classification Code for the activities.
Post filling these details, the next thing which is required is to enter the full amount of the money (in some lakhs) which one has invested in the plant or machinery.
Step 7: Choose the DIC or District Industry Center and approve the Declaration
In the last step of the application process, one needs to select their DIC or district industry center that is available from the drop-down list. One then needs to accept the terms and conditions and then choose the “Submit and Get final OTP” button.
Input the OTP which is sent on the registered mobile number and choose the “Final Submit” button. After clicking on the ‘Submit and Get Final OTP’ button one would get a registration number. After all the information is completely verified by the concerned authorities, one would get an E-registration document that is sent on the registered e-mail id.
Why does one need Udyam Registration?
Having Udyam registration for your venture entitles your business to the following benefits:
- You are entitled to collateral-free loans from any bank.
- You can request a lower rate of interest for loans from your bank/NBFC.
- The government will reduce your charges on claims.
- Your venture is eligible for concessions in electricity bills.
- You are entitled to receive subsidies from National Small Industries Corporation and other Government entities.
- Your business is eligible for reimbursement of the cost involved in obtaining ISO certification.
- The Government of India has an excise exemption scheme in place for you.
- You avail tax exemptions without any difficulty.
How does the Government offer any support to increase competitiveness in the manufacturing sector?
The Government conducts a National Manufacturing Competitiveness Program to help MSMEs in this regard. Following schemes are there in place to assist new ventures to increase their global competitiveness:
- Promotion of Information & Communication Tools in the MSME sector
- Lean Manufacturing Competitiveness Scheme for MSMEs
- Design Clinics Scheme for MSMEs
- Technology and Quality Up-gradation Support to MSMEs
- Enabling Manufacturing Sector to be Competitive through Quality Management Standards and Quality Technology Tools
- National campaign for building awareness on Intellectual Property Rights
- Setting up of Mini Tool Room under PPP Mode
- Marketing Assistance and Technology Upgradation Scheme for MSMEs
- Support for Entrepreneurial and Managerial Development of SMEs through Incubators
- Code under Market Development Assistance scheme
State the process of what one can do in case of complaint or discrepancy
If any discrepancy occurs or if there is any complaint, one can go to the general manager of any of the District Industries Centre through the concerned district who shall be undertaking another inquiry for the verification of these details of the Udyam Registration which is to be submitted by the owner of the enterprise.
After which, the concerned matter would be forwarded with some required remarks to the Commissioner or Director or the Industry Secretary who is concerned with the State Government. He will be issuing another notice to this enterprise and after presenting the case, which is based on their findings, may be corrected or recommended to the MSME Ministry of the Micro, Small or Medium Enterprises, Government of India, to cancel this Udyam Certificate of Registration.