Udyam Registration

For facilitating smoothness in doing of business goverment has come up with new initiative of Udyam Registration in place of existing Udhyog aadhar MSME registration. This initiative is believed to benefit number of companies as major entities will come under MSME.It is specified by ministry that no other agency is authorized to do registration under offline or online system under this new regime.There are several benefits announced by government for MSME units.

One important benefit is that government has made rules for PSU to procure certain percentage of their requirement from MSME unit only. Hence to take benefit of various goverment schemes it is required for MSME units to register themselves on Udyam portal.Khadi,handicrafts,plastic,rubber,clay,electronic components,leather,handlooms,food processing industries,wood,etc are major sectors falling under MSME.Earlier registration under msme that is EM 2 or udhyog aadhar are valid only till 31st March 2021.Following is the new definition of MSME under this revised guidelines:

Micro enterprise:Micro enterprise are those enterprise whose investment in plant and machinery does not exceed Rs.1 crore and annual turnover is less than Rs.5 crore.

Small enterprise:Small enterprise are those enterprise whose investment in plant and machinery does not exceed Rs.10 crore and annual turnover is less than Rs.50 crore.

Medium enterprise:Medium enterprise are those enterprise whose investment in plant and machinery does not exceed Rs.50 crore and annual turnover is less than Rs.250 crore.

Note:

For turnover export turnover should not be included to determine MSME status.
Cost of purchase of plant and machinery should be taken into account and not depreciated value for determining above status.

Applicable business can register themselves on the Udyam registration portal using self attested documents and aadhaar number and they will receive Udyam number and registration certificate. This system is highly updated and it is connected with Income Tax department and GST department.Turnover and value of investment in plant and machinery for determining status of MSME will be fetched from GST and Income Tax department respectively.For fresh incorporated units whose ITR or GST returns are not submitted, registration under udyam will be done based on self declaration.It is important to note that there will be only single registration for one entity though having multiple branches or verticals of business.

Owner of this information can be reached at K M GATECHA & CO LLP.

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