August 4, 2021

Udyam / micro, small and medium enterprises Registration Process.

 

Create a Micro, Small, and Medium Business.

 

The Udyam Registration platform can be used by anyone who wishes to start a micro, small, or medium business to fill out a self-declaration form with no need to upload any paperwork, papers, certifications, or proof.

 

A permanent identifying number known as the “Udyam Registration Number” will be granted to an enterprise (referred to as “Udyam” in the Udyam Registration portal) upon registration.

An e-certificate titled “Udyam Registration Certificate” will be delivered upon completion of the registration process.

 

  1. An understanding of MSME: MSMEs are a vital part of the Indian economy and have made significant contributions to the country’s socio-economic development by generating employment opportunities and developing entrepreneurship.

Micro, small and medium enterprises will be classified based on a composite criterion of investment and turnover, as shown below (w.e.f. July 01 2020):

 

Guidance on the calculation of investment in plant , machinery and equipment.

The preceding year’s Income Tax Return (ITR) filed under the Income Tax Act of 1961 would be used to calculate the investment in plant and machinery or equipment.

In the case of a new business with no prior ITR, the investment will be based on the promoter’s self-declaration, and this relaxation will terminate after the 31st March of the financial year in which the business files its first ITR.

To be clear, the cost of pollution control, research and development, industrial safety equipment, and other items that may be specified by notification are not included in the calculation of plant and machinery investment.

The Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN shall be used to provide guidance on the calculation of Turnover Information for an organisation in terms of turnover and exports turnover.

Exports of goods or services, or both, shall be omitted from the calculation of any enterprise turnover for classification purposes, whether micro, small and medium enterprise.

For the period up to 31 March 2021, the turnover related numbers of such firms that do not have a PAN would be examined on a self-declaration basis, after which PAN and GSTIN will be necessary.

 

  1. Udyam companies must be registered.

Self-declaration is used to finish the registration process online. The registration form can be accessed from the website of udyam Registration portal at https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.html.

Currently, the registration is divided into the following:

For new entrepreneurs who are not MSME-registered or who have EM-II.

For those who have already registered as Udyog aadhaar memorandum.

There is no cost associated with registering for Udyam.

The following are the registration requirements:

Each person is granted an Aadhar Number, which is a unique identity number.

The company, trust, society, Limited Liability Partnership (LLP), or Cooperative society – Aadhar would be of the Authorised Signatory Social category of the authorised person; Partnership firm – Aadhar would be of the Managing Partner; Hindu Undivided Family (HUF) – Aadhar would be of the Karta; Company, trust, society, Limited Liability Partnership (LLP), or Cooperative society – Aadhar would be of the Authorised Signatory Social category of

Name and kind of business (e.g., sole proprietorship, partnership firm, corporation, etc.).

PAN of the company

Plant Name and Address (Registered Business Address) (if any)

Bank Account Information (Bank Name, Bank Account Number, IFSC Code)

The dates of incorporation and the start of business are the same.

Employees’ number (Male, Female and others)

The Amount of Investment in Plant and Machinery or Equipment is based on the National Industry Classification Code (NIC Code) based on the enterprise’s activities.

Quantity of Turnover

After filling out all of the required information and completing the registration process, a Reference Number will be generated, which may be used to save or download the Udyam Certificate.

 

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  1. Micro small and medium enterprises udyam Registration Benefits.

The following is a sample of the benefits accessible to MSME-registered businesses:

Defend Against Postponed Payments

If a buyer delays payment for longer than 45 days, the business (i.e. Micro and Small Businesses) can levy compound interest.

Patent registration subsidy.

Patent registration is subsidised for business enterprises that are registered under the MSME Act. This is obtained by submitting an application to the appropriate ministry.

Electricity Price Reduction.

MSME can get a discount on their power price if they submit an application and a copy of their registration certificate.

Exemption from Overdraft Interest calculation Rates.

MSME-registered businesses can get a 1% discount on their overdraft, according to a plan that varies from bank to bank.

ISO Certification Fees Reimbursement.

The expenses for ISO certification can be claimed back by registered MSME businesses.

 

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