Introduction:

> The Central Government, after obtaining the recommendations of the Advisory Committee in this behalf, notified following:

> Certain criteria for classifying the enterprises as micro, small and medium enterprises

> Specifies the form and procedure for filing the memorandum (Udyam Registration), w.e.f 1st day of July, 2020 

Classification of Enterprise:

Micro. Small. Medium

How to become MSME?

> File Udyam Registration online

> Based on self declaration

> No requirements to upload documents, papers, certificates or proof

> On registration, Udyam Registration Number (URN) will be allotted.

> E- Certificate: Udyam Registration Certificate on completion

Composite criteria of investment and turnover for classification

> Shifting from one category to another:

> Will be placed in next Higher Category: If enterprise crosses the ceiling limits specified for its present category In either of two criteria – Investment OR T/o

> Will be placed in lower Category: If enterprise goes below the ceiling limits specified for its present category In both of the criteria – Investment & T/o 

> All units with GST numbers against same PAN shall be collectively treated as 1 Enterprise:

> The T/o & investment will be clubbed for all the units and then the category will be decided

Calculation of investment in plant and machinery or equipment

Enterprise Existing ITR of Last year
New Self Declaration of the promotor Upto it files its 1 st ITR

Plant & Machinery:

> Includes all TANGIBLE Assets

> Excluding

> Land & Building

> Furniture & Fixture

> Purchase value of P & M:

> First hand or second hand

> Excluding GST

> Self disclosure basis – If the enterprise is NEW

Calculation of turnover

>Excluded:

> Export of Goods/Services

> Definition of T/o & Export T/o as per Income Tax Act/CGST Act and GSTIN)

> Turnover will be as per Self Declaration if “NO PAN”

> Upto 31/03/2021

> Thereafter PAN & GST mandatory

Registration Process:

> Form at Udyam Registration Portal

> No fee for application

> Mandatory Aadhar of:

> Proprietor

> Partnership – Managing Partner

> HUF- Karta

> Company/LLP/Co-op Society/Society/Trust – Authorised Signatory along with GST & PAN of the organisation

> Only 1 application – All activities of manufacturing or services or both will be added

Penalty:

> Penalty for misrepresents or attempts to suppress the self-declared facts and figures:

conviction

Registration of Existing  Enterprises:

> All existing registered under:

>  EM – Part II OR (Entrepreneurs Memorandum)

>  UAM (Udyog Aadhar Memorandum Portal)

>  Again register on Udyam Registration Portal w.e.f  01/07/20

> All enterprise registered till 30/06/2020 shall be re- classified

>  Existing enterprise registered upto 30/03/2020 – valid till 31/03/2021

Updation of information:

>  Update information online:

>  Details of ITR & GST Return

>  For the Previous Year

>  On Self Declaration Basis

>  Failure to update within due date – Suspension of registration

>  Based on the latest information – The classification will be updated

>  Enterprise will be communicated for:

>  Graduation – From lower to Higher Category

>  Reverse graduation – From Higher to Lower Category

Facilitation and grievance redressal of enterprises

The Champions Control Rooms

>  DIC (District Industries Centres)

>  In case of Non availability of Aadhar or any other difficulty in application then above two offices can facilitate the registration on

>  Aadhaar enrolment identity slip or

>  copy of Aadhaar enrolment request or

>  bank photo pass book or

>  voter identity card/ passport/driving licence.

Download Above in PDF Format

Author can be reached at ca.pavanssharma@gmail.com

Author Bio

Qualification: CA in Practice
Company: VDA & Associates
Location: Pune, Maharashtra, IN
Member Since: 29 Aug 2018 | Total Posts: 4
CA in practice at Pune with specialization in Bank Audit, Project Financing & Government Audit Section. Excel Enthusiast | View Full Profile

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43 Comments

  1. Hemanth P S says:

    It is taking previous year turnover into consideration ie 18-19.We are a newly registered firm which is yet to commence business.So investment will be nil in that case (since they are considering only previous year values

  2. Pawan says:

    Dear Sir, The auto populated turnover and WDV data are completely wrong. What should I do as there is no option of editing the same. Ex. in turnover it is only picking up the Direct Income Total and not the income from other sources value which is a significant amount in my case. How to proceed?

  3. RisHI says:

    Hello Sir,

    I have created a online website similar to olx.in

    What all registration steps should i do
    I have registered for Udyam Certificate.
    Do i need any this else ? If so please explain the steps?

    Gst Tin i dont have.
    I even dont know how much i will be earning as this is new website.

    Thanks

  4. SUSHANT says:

    I AM TRYING TO REGISTER ON GEM PORTAL, When i am updating my company profile in MSE section UAM number is required (i.e. 12 digit), but now we have URN nunber (i.e. 11 digit) . So how to complete registration

    1. PRASANNA B says:

      First you have to take Udyam Registration, Once Udyam registration certificate will approved,UAM Number also appear on certificate, after that you can log in on Gem portal by using of UAM number

  5. Abhilash J says:

    Is UDYAM number and UAM number same?
    I have got 16digit UDYAM number whereas UAM number is 12 digit. Portals such as GEM is asking for 12 digit UAM number. Please Clarify..

  6. JUHI KOTHARI says:

    I HAVE OBTAINTHE UDYAM REGISTRATION CERTIFICATE.. BUT THERE IS WRONGADDRESS WRITTEN IN CERTIFICATE BY MISTAKE..
    HOW TO APPLY FOR CORRECTION IN UDYAM REGISTRATION CERTIFICATE??
    pLEASE HELP ITS URGENT

  7. V L INDRAKUMAR says:

    I have registered in Udyam Registration and got Udyam registration Number… But in i have not received UAM number why ??? please help me out how to get UAM in Udyam Registration.

    1. ca.pavan_1 says:

      There are no requirement to upload any document for applying the Udyam Aadhar. So there is no requirement to have the format of self declaration.

  8. Neeraj gulati says:

    I have received URN but its 11 digit number and any difference between UAM vs URN. Please clarify. I am not able to understand if I have URN is this registered in MSME. Its totally confuse.

        1. PALWINDER SINGH says:

          I ALSO GOT 11 DIGIT UDYAM REFERENCE NO 20 DAYS BACK. HOW CAN I PRINT THE CERTIFICATE WITH REFERENCE WHICH I HAVE GET. KINDLY HELP. MOB. 9478346603

    1. Romil Shah says:

      Yes. PAN & GST Number is Compulsory for taking Udyam Registration. They advised to us to take the same before 31st March 2021 and update on the website. Non Submission of PAN & GST Number will lead to suspension of Udyam Registration.

  9. Yash says:

    On UDYAM website it is mentioned to obtain GST number before 31.03.2021 which is mandatory. Our firm annual turnover is 9.5 lacs, can we GST number?

    1. ca.pavan_1 says:

      Your case can be referred to DIC in case of any difficulty in registration. in case you have already received the MSME registration online, then there will not be additional verification by DIC.

  10. Rajesh says:

    It is taking previous year turnover in consideration i.e. FY 2018-19 as we are yet to file ITR for FY 2019-20 in which we have crossed 250 Cr Turnover Do we need to register.

    1. ca.pavan_1 says:

      In that case, Self Declaration will be considered, and in that if the turnover is more than 250 Cr then you will not be eligible for MSME.

    1. ca.pavan_1 says:

      Transportation business is covered under the definition of services, so you can apply under MSME and as your turnover is 10 Cr then you are eligible under Small Category.

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