MSME Udyam Registration
Union MSME Ministry launched the Udyam Registration Portal on 1st July 2020. The portal has proven its worth both in terms of flexibility and features. At present, the portal has more than 11 lakh registered MSMEs (Micro, Small and Medium Enterprises) that have completed their registration process on a self-declaration basis. The Finance Minister introduced this registration process as a part of the Prime Minister’s relief package amid Covid 19 pandemic.
Every businessman has somewhat idea about Udyam registration that these are for getting benefits of government schemes but the confusion in the minds is what is the difference between MSME Registration and Udyam Registration?
Difference between MSME registration and Udyam registration.
The ministry of MSME has changed the name of MSME certificate as Udyam Aadhar Certificate with a unique number termed as UAN in the certificate. But now both are one and only the same thing having difference in certificates. In short Udyam Aadhar registration is the easy and simple way to get MSME registration certificate. It is easier to apply MSME registration after getting a 12-digit UAN in Udyam Aadhar registration certificate.
What is MSME Registration?
MSME registration came into force in 2nd October, 2006 to promote and develop the competitiveness of Micro, Small and Medium Enterprises. It is well known to everyone that MSMEs are that important stuff without which a developing country like India even can’t imagine its growth and development. Hence it was important for the government to enhance the units of MSMEs for which MSME registration was launched so that the registered once can get the benefits of the government schemes.
What is a Micro Small and Medium Enterprise?
As per the MSMED Act, 2006, MSMEs and SSIs were enacted to strengthen and boost the Small-Scale sector in India. Earlier, both Service and Manufacturing were considered distinct and separate from each other, having different amount prescribed for the Investment Required.
However, as per the latest amendment made in the definition of MSME by the Ministry of Finance, the difference between the manufacturing and service sectors has been eliminated, Investment Limits have been Revised, and a Turnover Criteria has been introduced. This amendment was announced by our Finance Minister, Mrs. Nirmala Sitharaman, on 13 May 2020. The following listed are considered as MSMEs under the MSMED Act, 2006:
Classification of Enterprises
The enterprise will be classified as micro, small, or medium enterprise according to the following criteria:
What is the criteria to classify MSMEs?
The classification as MSME is done on the basis of investment plans of the business no matter in service sector or the other. Here are the investment limits which distinguish MSMEs: -
|Manufacturing||<Rs. 25 Lakhs||<Rs. 5 Lakhs||<Rs. 10 Crore|
|Service||<Rs. 10 Lakhs||<Rs. 2 Crore||<Rs. 5 Crore|
These maximum limits of MSMEs somewhere kills the options to expend the business up to its original capacity. But in the plan of AATMANIRBHAR BHARAT ABHIYAN, the government has extended these investment limits and also removed the definition gap between the service sector enterprise and manufacturing sector enterprise. Now here are the revised classification limits in which the limit of Annual Turnover is also included by the government with investments as described below:
|Investment||<Rs. 1 Crore||<Rs. 10 Crore||<Rs. 50 Crore|
|Annual Turnover||<Rs. 5 Crore||<Rs. 50 Crore||<Rs. 250 Crore|
- A Micro Enterprise is the one wherein the investment in Plant and Machinery or Equipment does not exceed rupees 1 crore, and turnover does not exceed rupees 5 crore;
- A Small Enterprise is the one wherein the investment in plant and machinery or equipment does not exceed 10 crore rupees, and turnover does not exceed 50 crore rupees; and
- A Medium Enterprise is the one where the investment in plant and machinery or equipment does not exceed 50 crore rupees, and turnover does not exceed 250 crore rupees.
Benefits of MSME/Udyam Registration
Below are some of the benefits that can be enjoyed by the enterprises after getting MSME registration: -
Documents Requirement for MSME/Udyam Registration
The documents needed for obtaining online MSME Registration are as follows:
Registration Process of MSME/Udyam Registration
Following steps can be followed for getting MSME Registration:
Go on the official website of Udyam registration i.e. Udyamregistration.gov.in.
Home wage of the site open and provide an option to select the category i.e.
- If you are a new entrepreneur then click over the option of For “New Entrepreneurs who are not Registered yet as MSME or those with EM-II”; and
- If your case is to migrate Udyam Aadhar to re-register UAM then click over the option of “For those already having registration as or “For those already having registration as UAM through Assisted filing”.
- When the new entrepreneur proceeds with the above step then a page will open in which the entrepreneur is required to fill its Aadhar number and name as per Aadhar card and validate it with OTP on its mobile number linked with its Aadhar card.
- Now the further the form will open and the applicant is required to fill the details as demanded by the form and registration will be completed by entering a captcha code and a click on submit button.
- In case of “For those already having registration as or “For those already having registration as UAM through Assisted filing” the applicant will be shown a screen demanding for UAM number and validation with OTP which will be send on registered E-mail or Mobile number at the option of applicant. After validation the registration process will be completed.
How to check Udyam Registration Status?
The Board of Directors and supervisory group ought to concede to a rundown of key choices
On the home page of official site of UDYAM registration click over the option of Print/Verify which requires the UDYAM registration number registered mobile number to verify the authenticity of the applicant. After OTP verification, it will automatically redirect to the Print Certificate Page and the certificate can be printed from that page.
It is a lifetime registration certificate without any expiry time limitation up to the extent that the entity must be financially healthy and with its ethical norms.
No, the applicant has the option to add the manufacturing plants as it can in the same registration form for the same entity. Hence no any separate registration is required for multiple branches of same entity.
Yes, if the applicant wants to update any information, then he/she can click over the update details option on the home page of the official website of MSME UDYAM registration.
Yes, the authorized person can apply for cancellation of registration on the portal by clicking on the option of update/cancel UDYAM registration.
The Ministry of MSME notified that Udyog Aadhar is taking a cue from the Prime Minister’s radio show named “Man ki Baat” held in September 2015.
Yes, it is mandatory to have an Aadhar Card to obtain MSME Registration in India.
No, Credit Score is not necessary for MSME Registration.