With effect from July 1, 2020, the Central Government notified specific standards for classifying enterprises as micro, small, and medium enterprises, as well as the procedure and form for filing the memorandum Udyam Registration, based on the recommendations of the Advisory Committee.
The Union Ministry of Micro, Small, and Medium Enterprises (MSME) announced a new process for registering businesses in a notification dated June 26, 2020. The company will be known as Udyam for this reason, and the registration process will be known as Udyam Registration. Continue reading to find out more about the MSME Udyam Registration Process and Penalty.
What is the meaning of Udyam Registration?
Anyone who wants to start a micro, small, or medium business can go to udyamregister.org in and fill out the online Udyam Registration form. The Udyam Registration platform is used for self-declaration registration. There are no fees for applying for Udyam registration, but the owner, partner, director, promoter, or Karta must produce their aadhaar card if one is necessary when registering for Udyam registration.
The Udyam Registration platform can be used by anyone who wishes to start a micro, small, or medium business. Self-declaration will suffice instead of uploading any paper, paperwork, certificates, or proof.
Registration Number for Udyam
The enterprise known as “Udyam” will be awarded a permanent identifying number known as “Udyam Registration Number” after the registration is completed.
Registration Certificate for Udyam
The applicant will be granted an e-certificate titled “Udyam Registration Certificate” after completing the MSME Udyam registration process.
GSTIN and PAN
All units with the same Goods and Services Tax Identification Number (GSTIN) that are listed on the same Permanent Account Number (PAN) are treated as one enterprise, and the investment figures and turnover for all of those entities are viewed collectively, and only their aggregate values are used to determine whether the entity is classified as micro, small, or medium.
Verification of Specifications
The ‘General Manager of the District Industries Center of the appropriate district is entitled to conduct an investigation for verification if there is any disagreement or complaint in the particulars of Udyam Registration that are given by the firm. Furthermore, after verifying the matter and making the necessary comments, it will be forwarded to the relevant State Government’s Commissioner, Director, or Industry Secretary.
According to the notification, the person may correct and improve the details, or recommend that the Udyam Registration Certificate be canceled to the Ministry of Micro, Small, and Medium Enterprises of the Government of India after giving the enterprise a chance to present its case and after issuing a notice to the enterprise based on the findings.
The Government is constantly working on several initiatives because of the coronavirus turbulence, such as the Indian Government has relaxed various provisions of MSME law & re-framed it accordingly so that many business enterprises and start-ups can avail of its benefits.
What is India’s MSME Udyam Registration Process?
- The registration form will be available on the Udyam Registration portal.
- The Aadhaar number must be provided because it will be required during the MSME Udyam Registration process.
- In a proprietorship firm, the proprietor must provide his Aadhaar number; in a partnership firm, the controlling partner’s Aadhaar card is necessary; and in a Hindu Undivided Family (HUF), the karta’s Aadhaar card is required.
- In the case of a Company, a Cooperative Society, a Limited Liability Partnership, a Society, or a Trust, the GSTIN and PAN, as well as its Aadhaar number, must be submitted by the organization or its authorized signatory.
- When a company is registered as an Udyam with a PAN, but it has provided information that is inconsistent in earlier years when it did not have a PAN, it must be filled out on a self-declaration basis.
- Enterprises are not permitted to file for more than one Udyam Registration, however, this is subject to the restriction that any number of operations, including service, manufacturing, or both, may be added or described in a single Udyam Registration.
- Anyone who tries to hide the facts or intentionally misrepresents the self-declared numbers and facts in the Udyam Registration or the updation procedure is subject to the punishment outlined in section 27 of the Act.
- On or after July 1, 2020, all existing and registered firms under EM–Part-II or UAM must re-register on the Udyam Registration portal.
- All businesses that are registered until June 30, 2020, will be reclassified in accordance with this notice.
- Existing businesses that were registered before the 30th of June, 2020, will be valid until the 31st of March, 2021.
- Any business that is registered with the Ministry of Micro, Small, and Medium Enterprises through another organization can also register under the MSME Udyam Registration.
What Benefits Does MSME Udyam Registration Provide?
In India, Udyam registration is particularly important for small and medium-sized businesses. MSME is the backbone of the Indian economy, and it has been discovered that MSME has aided our nation’s economic progress because the bulk of the population relies on small and medium-sized enterprises. The following are some of the advantages of MSME Udyam Registration:
- Interest rates on credit are lower.
- Deduction for taxes
- Corporate tax reduction
- Avoiding a Tax Audit
- Tariff for Electricity
- Support for the Market
- Loans with No Collateral
- GeM is available for use.
- Using e-samadhan to register
- Participation in government tenders is free of charge, and no security deposit is required.
- Fees for ISO certification reimbursed
- Access to a line of credit
- Intellectual Property Rights Awareness
- Providing assistance in the areas of technology and quality improvement
- Scheme ZED
- Fees for Patents
- Services Tax & Goods and Services Tax
- Discount of 50% on trademarks
- Capital Requirements Subsidy
- Scheme for Performance and Credit Ratings
- CHAMPION PROGRAM
Whoever attempts or tries to suppress the figures and facts in the MSME Udyam Registration with the goal to distort the facts will be punished.
- With a fine of up to Rs.1000/-: In the event of a first conviction,
- With a fine of at least Rs.1000/- and up to Rs.10,000/-: If you are convicted for the second or subsequent time, you will be sentenced to prison.
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MSME Udyam registration online provides amazing benefits to entrepreneurs under the Indian government’s existing MSME scheme. One of the most significant benefits of registration is that the company can participate in both federal and state government business schemes. If you wish to take advantage of these government programs, you must first complete the registration process.