Reetu | Feb 8, 2024 |
MSME Registration: Download Booklet on Udyam Registration
Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
An enterprise (referred to as “Udyam” in the Udyam Registration portal) will be granted a permanent identifying number known as the “‘Udyam Registration Number” upon registration. An e-certificate, namely, the “Udyam Registration Certificate” shall be issued on completion of the registration process.
In exercise of the powers conferred by sub-section (1) read with sub-section (9) of section 7 and sub-section (2) read with sub-section (3) of section 8, of the Micro, Small and Medium Enterprises Development Act, 2006, (27 of 2006), hereinafter referred to as the said Act, and in supersession of the notifications of the Government of India in the Ministry of Micro, Small and Medium Enterprises number S.O.1702 (E ), dated the 1st June, 2020, S.O. 2052 (E), dated the 30th June, 2017, S.O.3322(E ), dated the 1st November, 2013 and S.O.1722 (E ), dated the 5th October, 2006, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (ii), except as respects things done or omitted to be done before such supersession, 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 (hereafter in this notification to be known as “Udyam Registration”), with effect from the 1st day of July, 2020.
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: —
(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
(i) A composite criterion of investment and turnover shall apply for the classification of an enterprise as micro, small or medium.
(ii) 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.
(iii) All units with a Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) will be treated as one enterprise, and the turnover and investment figures for all such entities will be viewed together, with only the aggregate values being considered when determining whether the entity is classified as a micro, small, or medium enterprise.
(i) Investment in plant and machinery or equipment will be calculated using prior years’ Income Tax Returns (ITRs) filed under the Income Tax Act of 1961.
(ii) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
(iii) The term “plant and machinery or equipment” of the firm should have the same meaning as it has in the Income Tax Rules, 1962, adopted under the Income Tax Act, 1961, and shall comprise all tangible assets (other than land and building, furniture and fittings).
(iv) If the firm is new and does not have an ITR, the purchase (invoice) value of a plant, machinery, or equipment, whether obtained first or second hand, shall be taken into account, excluding Goods and Services Tax (GST), on a self-disclosure basis.
(v) The cost of certain items specified in Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.
(i) Exports of goods or services, or both, are omitted from the calculation of any enterprise’s turnover for classification purposes, whether micro, small, or medium.
(ii) Information as regards turnover and export turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
(iii) The turnover-related numbers of such enterprises that do not have PAN would be evaluated on a self-declaration basis until March 31, 2021, after which PAN and GSTIN will be necessary.
(i) The form for registration shall be as provided in the Udyam Registration portal.
(ii) There will be no fee for filing Udyam Registration.
(iii) An Aadhaar number shall be required for Udyam Registration.
(iv) 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).
(v) In the case of a Company a Limited Liability Partnership or 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.
(vi) In case an enterprise is duly registered as a Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on a self-declaration basis.
(vii) 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.
(viii) 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.
(i) 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.
(ii) All enterprises registered till 30th June 2020, shall be re-classified in accordance with this notification.
(iii) The existing enterprises registered prior to 30th June 2020, shall continue to be valid only for a period up to the 31st day of March 2021.
(iv) 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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