Meaning of UDYAM:
The notification issued by the Government says that from July 01, 2020, an MSME will be known as UDYAM, and the enrolment or the registration process will be known UDYAM Enrollment Registration.
Eligibility Criteria:
Ministry of Micro, Small and Medium Enterprises vide its notification dated 1st June read with notification 26th June, 2020 has revised criteria for classification of MSME w.e.f 1st July, 2020
| Investment in Plant & Machinery as Equipment and Turnover | |||
| Classification | Micro | Small | Medium |
| Manufacturing & Service |
Investment<1 Crore And |
Investment<10 Crores And |
Investment<50 Crores And |
| Turnover<5 Crore | Turnover<50 Crore | Turnover<250 Crores | |
The term “AND” is used between the two conditions. For an entity to be classified as MSME enterprise, it has to be in compliance with investment and turnover criteria cumulatively. If either of the criteria is not fulfilled it will be placed in the next higher category.
In the case of an enterprise having multiple units, all units with Goods and Services Tax Identification Number (GSTIN) listed against the same PAN shall be collectively treated as a single enterprise. The turnover and investment values of each of the units shall be aggregated to determine the nature of enterprise viz., micro, small and medium.
BENEFITS OF UDYAM REGISTRATION:
- Interest rate Subsidy on Bank loans
- Collateral free loans from banks
- Protection against delayed payments, against material/services supplied
- Special beneficial reservation policies in the manufacturing/ production sector
- Ease of obtaining registrations, licenses and approvals.
- Msme Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme)
- International trade fair special consideration
- Government security deposit (EMD) waiver (Useful while participating tenders)
- Electricity bills concession
- Stamp duty and registration fees waiver
- ISO certification fees reimbursement
- Direct tax laws rules exemption
- NSIC performance and credit rating fees subsidy
- Patent registration subsidy
- Barcode registration subsidy
- Industrial Promotion Subsidy (IPS) Subsidy Eligibility
MSME Registration is Free, Paperless and based on Self-Declaration:
- MSME registration process is fully online, paperless and based on self-declaration.
- No documents or proof are required to be uploaded for registering an MSME.
- Only Adhaar Number will be enough for registration.
- PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases.
- Having PAN & GST number is mandatory from 01.04.2021.
- Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
- 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 Registration.
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 1st day of July, 2020.
- All enterprises registered till 30th June, 2020, shall be reclassified 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 31stday of March, 2021.
- An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
For professional guidance, please do not hesitate to contact us at +91 9757135306 or at hitarth.sheth@bhaskara.in.
Research & Publishing Team:
CA Hitarth Sheth (Partner at BCG)
Sagar Ahuja (Intern at BCG)