UDYAM REGISTRATION

Union Ministry of Micro, Small and Medium Enterprises (MSME), vide its Notification Dated 26.06.2020:

A. Notifies the new definition of MSME,

B. Specifies the new form and procedure for registration under MSME, known as – “Udyam Registration”, and

C. Mandated the re-registration of existing MSMEs on the new Udyam Registration portal.

In that context, a new portal is introduced known as “UDYAM REGISTRATION PORTAL” which becomes effective from 01.07.2020, and accordingly, the old portal has become inoperative.

The site link for the new portal is https://udyogaadhaar.gov.in/

An enterprise will now be known as “Udyam” and its Registration Process will be known as “Udyam Registration”.

THE NEW DEFINITION OF MSMEs:

COMPOSITE CRITERIA: *INVESTMENT AND ANNUAL TURNOVER
CLASSIFICATION MICRO SMALL MEDIUM
MANUFACTURING & SERVICES Investment upto INR 1 crore

and

Turnover upto INR 5 crore

Investment upto INR 10 crore

and

Turnover upto INR 50 crore

Investment upto INR 50 crore

and

Turnover upto INR 250 crore

*Investment in plant and machinery or equipment

KEY POINTS FOR NEW REGISTRATION UNDER MSME

> Aadhaar Number shall be required for registration.> The registration process is fully online, paperless, and based on self-declaration.

√ In the case of a Company or LLP or a Cooperative Society or a Society or a Trust, GSTIN and PAN along with its Aadhaar number are mandatory.

√ In the case of the proprietor, you can continue with Aadhar only on a self-disclosure basis but before 03.2021 you must apply for PAN & GST number and have to update the same on the portal.

> All units with GSTIN listed against the same PAN shall be treated as one enterprise.

> A permanent identity number to be known as “Udyam Registration Number” is assigned and an e-certificate “Udyam Registration Certificate” shall be issued after a successful registration.

> E-certificate will have a dynamic QR Code from which the web page of Portal and details about the enterprise can be accessed.

> Registration will be valid for a lifetime.

CALCULATION OF INVESTMENT IN

PLANT AND MACHINERY OR EQUIPMENT and TURNOVER

Classification Enterprises who have filed at least one ITR New enterprises which have not filed even 1 ITR
A.   The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961. Name of enterprise, location of plants & enterprise, and date of commencement will auto-filled after verification from GSTN.

The values of investment in P&M or equipment will be auto-filled after verification of the same form of Income-tax.

All information has to be filled on a self-declaration basis.

The values of investment in P&M or equipment will be based on the self-declaration of the promoter of the enterprise.

The invoice value will be accounted for on a self-disclosure basis excluding the amount of GST.

B.   Calculation of turnover and * export turnover shall be linked to the Income Tax Act or the CGST Act and the GSTIN. Total, export, and net turnover will be auto-filled after verification from Income tax.  Total, export, and net turnover have to be entered on a self-declaration basis.
 The certificate will only be issued after the successful verification of information from the relevant department. Enterprise, on self-declaration basis, shall update the information of filed ITR on the portal after filing its 1st ITR before 31st march of the respective year.

*Exports of goods or services or both shall be excluded calculating the turnover of any enterprise.

KEY POINTS FOR EXISTING REGISTERED MSMEs

>  All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 01.07.2020 but before 31.03.2021.

> An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

> All existing registered enterprises shall be re-classified following the new definition.

Note: No enterprise can file more than one Udyam Registration. However, any number of activities including manufacturing or service, or both may be specified in one Registration.

FAQs

Query: I have registered by clinic under Udyam, I am now to start another clinic (under the same name, mainly a new branch) at a different location, How can I register this new clinic?

Answer: Under Udyam registration all branches of an enterprise are considered as one and they are issued a single Udyam on a consolidated basis. An enterprise having UDYAM Registration Number can update its information online on portal on a self-declaration basis. Therefore, you have to update your existing Udyam number on portal for registering new clinic of yours.

Disclaimer

This article is for informational purposes only and is intended, but not promised or guaranteed, to be correct, complete, and up-to-date. Whitespan Advisory does not warrant that the information contained in this article to be accurate or complete, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause. 

Please feel free to contact the undersigned in case you require any further information/ clarification on the above article. 

Atul Singh – atul@whitespan.in

Garima Bansal  – garima@whitespan.in

Author Bio

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4 Comments

  1. Whitespan Advisory says:

    1. I am an individual who runs a sole proprietorship business by myself. Along with this, I am also the managing partner in a partnership firm.
    I have applied for Udyam registration of my proprietary business using my aadhaar number.
    Now when I try to apply for registration of my partnership firm using my same aadhaar number, it says only one registration can be obtained for one aadhaar number.
    There are only two partners in the firm & since both of us have proprietary businesses, we have used our aadhaar numbers for obtaining Udyam registration of our respective businesses.
    Please guide us on how to proceed further for registering our partnership firm under Udyog, using my aadhaar number, which is already used for my sole proprietary concern.

    Answer: As per the notification of Ministry dated 26.06.2020, only one UDYAM registration can be taken on one Aadhar number. And for registering partnership firm, Aadhar number of Partner is required. Please contact atul@whitespan.in and garima@whitespan.in for more clarity. We are happy to help you.

  2. Krishna says:

    I am an individual who run a sole proprietorship business by myself. Along with this, I am also the managing partner in a partnership firm.
    I have applied for Udyam registration of my proprietary business using my aadhaar number.
    Now when I try to apply for registration of my partnership firm using my same aadhaar number, it says only one registration can be obtained for one aadhaar number.
    There are only two partners in the firm & since both of us have proprietary businesses, we have used our aadhaar numbers for obtaining Udyam registration of our respective businesses.
    Please guide us on how to proceed further for registering our partnership firm under Udyog, using my aadhaar number, which is already used for my sole proprietary concern.

  3. Whitespan Advisory says:

    As we have received many queries on same with many other folds on our personal E-mail IDs. Therefore, we are posting this query on the article itself, alongwith its solution, for the benefit of everyone:

    Query: I have registered by clinic under Udyam, I am now to start another clinic (under the same name, mainly a new branch) at a different location, How can I register this new clinic?

    Answer: Under Udyam registration all branches of an enterprise are considered as one and they are issued a single Udyam on a consolidated basis. An enterprise having UDYAM Registration Number can update its information online on portal on a self-declaration basis. Therefore, you have to update your existing Udyam number on portal for registering new clinic of yours.

  4. Whitespan Advisory says:

    As we have received many queries on same with many other folds on our personal E-mail IDs. Therefore, we are posting this query on the article itself, alongwith its solution, for the benefit of everyone:

    Query No.1> Can more than one UDYAM registration be done on same PAN?
    Answer: No. The registration process is inter link with ITR and GST Department and PAN is linked at backend and calculation of Plant & Machinery and Turnover are auto-filed with details filed with linked PAN. For one PAN you can apply only one UDYAM registration.

    Query No. 2> If yes then How??
    Answer: you can file only one application with one PAN.

    Query No.3> If no then how to amend the UDYAM already taken?
    Answer: The already issued UAM need to register themselves on UDYAM portal on or before 31.03.2021. UAM having same PAN cannot apply for new UDYAM, system will generate error for non-eligibility. However, an enterprise having UDYAM Registration Number can update its information online on portal on a self-declaration basis.

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