Udyam Registration Scheme

Primary Certifications

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 7

Others

Udyog Aadhar Memorandum – New Process for MSME Registration

Facilitation Authority         :     Ministry of MSME, Govt. of India 

Effective from                     :     1st July, 2020

How to apply                       :     Online only -  www.udyamregistration.gov.in

 

Revised MSME Limits:

Classification Micro Small Medium

Manufacturing (OR) Services sector

Investment below Rs. 1 Cr & Turnover below Rs. 5 Cr

Investment below Rs. 10 Cr & Turnover below Rs. 50 Cr

Invest. below Rs. 50 Cr & Turnover below Rs. 250 Cr

Important Point:

1.     Investment Means: - “Investment in Plant & Machinery or Equipment” – i.e. Tangible Assets

2.    Tangible Assets excludes: - land, building, furniture & fittings.

3.    First hand or second hand P & M or equipment are allowed (without GST)

Note:

  1. All units with GSTIN against the same PAN shall be treated as one Enterprise.
  2. Turnover & Investment figures for all such units shall be clubbed together and only aggregate values will be considered for deciding the category as micro, small or medium enterprise.
  3. Only One Udyam Registration for one enterprise. Any number of activities will be added in one Udyam Registration.

Calculation of “Investment in P & M or Equipment”:

In case of Existing Enterprises

In case of New Enterprises

As per Income Tax Return (ITR) of the previous years filed under IT Act 1961.

Based on “Self-declaration of the Promoter of the Enterprises”.

Note: above relaxation shall be end after 31st march of the financial year in which it files its first ITR.

Calculation of “Turnover”:  Turnover excludes “Exports of Goods or Services or both” (i.e. Domestic sale without GST only – As per ITR)

Effect on Existing Enterprises:

1

Existing enterprises means

Who are already registered under EM-Part-II or UAM

2

If Existing Enterprises already registered before 30.06.2020

a.       It shall be Re-Classified as Micro, Small or Medium.

b.       But shall be continue to be valid only up to 31.03.2021.


Points to be noted:

  1. In case of “lower to higher category”: (i.e. Micro – to small or medium, Small – to medium)
  1. Enterprise will be placed in applicable category based on their eligibility. (i.e. higher category) 
  2. Enterprise will maintain its prevailing status at least 1 year from the close of the year of registration.
  1. In case of “Higher to lower category”: (i.e. Medium – to small or micro, Small – to micro)
  1. Enterprise will be placed in applicable category based on their eligibility. (i.e. lower category).
  2. Enterprise will continue in its present category till the closure of the financial year, whether enterprise is registered or not.
  3. Benefits will be given with effect from 1st April of the financial year following the year in which such change took place.

Single window Systems: (For Grievance Redressal of Enterprises)

  1. The Champions Control Rooms & offices of Ministry of MSME including the Development Institutes (MSME – DI) shall act as single window system for facilitating the registration process.
  1. DICs will also act as single window facilitation systems in their Districts.
  1. In case of any discrepancy or complaint: General Manager of the DIC of the concerned district shall undertake an enquiry and thereafter forward the matter to Director or Commissioner or Industry Secretary concerned State Govt. may amend the details or recommend to Ministry of MSME.

Check list:

  1. Only Aadhaar number will be enough for registration.

In case of proprietorship firm

Aadhaar number of the proprietor is required

In case of Partnership firm

Managing Partner Aadhaar number is required

In case of HUF

Karta of HUF Aadhaar number is required

In case of company / LLP / Co-operative society / Trust

Authorized signatory Aadhaar number, GSTIN & PAN is required
  1. PAN & GST number mandatory from 01.04.2021.

Benefits for Registered Udyam Holders:

  1. The business owner can avail octroi and tax concession in states laws as applicable.
  2. Claim stamp duty and registration fees waiver.
  3. Exemption of 1% interest rate on Overdraft.
  4. Reimbursement on the payment made for obtaining the ISO certificate.
  5. Reservation of products for exclusive manufacturing by MSME and SSI.
  6. Avail exemption while applying for government tenders.
  7. Exemption under direct tax laws.
  8. Enjoy easy bank mortgages and Bank Business Loans
  9. Bank loans become cheaper as the interest rate is very low (Upto 1.5% lower than interest on regular loans
  10. Becomes easy to get licenses, approvals, and registrations, irrespective of field of business as business registered under Udyam are given higher preference for government license and certification.
  11. Registered Udyam holders gets tariff subsidies and tax and capital subsidies
  12. Interest rate Subsidy on Bank loans
  13. Protection against delayed payments, against material/services supplied
  14. Ease of obtaining registrations, licenses, and approvals.
  15. Can obtain benefits under various Central & State Government Schemes
  16. Subsidy is available for Patent registration
  17. Industrial Promotion Subsidy (IPS) Subsidy Eligibility
  18. One can avail 100% Collateral Free loans from all banks
  19. Special consideration on International Trade fairs
  20. Bar Code Registration Subsidy
  21. Waiver in Security Deposit in Government Tenders and Departments
  22. Concession in Electricity bills
  23. Industrial Promotion Subsidy (IPS) Subsidy Eligibility
  24. Interest rate Subsidy on Bank loans
  25. Protection against delayed payments, against material/services supplied
  26. Ease of obtaining registrations, licenses, and approvals.
  27. MSME Registered entity gets eligible for CLCSS (credit linked capital subsidy scheme) And various other benefits.