All about MSME - How to Register,Its Benefits,Re-Register,Update,Cancel.

MSME / Udyam Registration Process

Register a Micro, Small and Medium Enterprise

Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identity number to be known as “‘Udyam Registration Number”.
An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process.

What is UDYOG Aadhaar?

Udyog Aadhar is also known as Aadhar for Business. It is a unique 12 digit Government identification number issued by the Ministry of MSME for all small and medium enterprises and small scale industries. These business entities are registered through this process as MSME with their Aadhar Card Number.

Difference between Udyog Aadhaar, MSME & SSI

Before, Udyog Aadhar used to be referred to as MSME registration. Now, the whole process of obtaining MSME registration is converted to Udyog Aadhar registration.

SSI vs MSME.There is no specific difference between SSI and MSME. SSI or Small Scale Industries was initiated along with the emergence of MSMED (Micro Small and Medium Enterprise Development Act, 2006) to develop the Small Scale Industries.

Eligibility

Where to Apply:

Apply Online Free of Cost at https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

BENEFITS OF UDYOG AADHAAR CERTIFICATE

Ø Easy to received Bank Loans.

Ø Interest Rate Subsidy upto 1% on Bank OD.

Ø Concession on Electricity Bills.

Ø Protection against delayed payment.

Ø 50% Discount on Trademark Registration.

Ø Reimbursement of ISO Certification Charges.

Ø Recognised under Govt of India.

Ø Easy to Open Current Account.

Ø Exemption under Direct Tax Laws – Industrial Promotion Subsidy under MSME Act.

Ø Easy to get Approvals, Licenses and Registration.

Ø Government Tenders specifically for MSME.

Ø Apply UAN FREE of Cost.

Help to MSMEs to recover outstanding payments:

Government of India Ministry of Micro, Small & Medium Enterprises

As per the Section 8 of Insolvency and Bankruptcy Code, 2016 (IBC Code), an operational creditor of a company can serve a demand notice on occurrence of default in payment on the due date. In case of non-receipt of payments of Rupees One lakh and above, the operational creditors can initiate a corporate insolvency resolution process under the provision of Section 9 of the IBC Code.

For the convenience of Micro & Small Enterprises (MSEs), we have now integrated the https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx portal with the `Information Utility (IU)’ of National e-Governance Services Ltd. (NeSL) enabling following steps.

MSEs, while registering a complaint on Samadhaan Portal, may give their consent to share their outstanding or unpaid invoices details on the NeSL IU.

The NeSL will send a link to those MSEs for logging into NeSL-IU and puffing their respective digital signatures attesting the information on the Samadhaan.

The NeSL will upload the copy of unpaid invoices and put pressure on the companies to make the payments. Once MSEs give their consent, the communication/information could then be shared to the other lenders like Banks, NBFCs, rating agencies and other MSMEs concerning the defaulting buyers as a means to create pressure on them for clearance of the outstanding payments. For any clarification, MSMEs may write to NeSL on helpdesk@nesl.co.in or call on 1800 599 2345 or visit www.nesl.co.in.

GUIDELINES FOR FILING AADHAAR UDYOG FORM

1. Aadhaar Number: 12-digit Aadhaar number of the applicant is mandatory.

2. Name of the owner: The applicant should fill his/her name strictly as mentioned on the Aadhaar Card issued by UIDAI. E.g. if Raj Pal Singh has his name as Raj P. Singh, the same should accordingly be entered if the name does not match with the Aadhar Number, the applicant will not be able to fill the form further.

To Validate Aadhar:-

Validate Aadhar- The applicant must click on Validate Aadhaar button for verification of Aadhaar, after that only user can fill the form further.

Reset- The applicant can click on reset button to clear the field of Aadhaar No and Name of the owner for different Aadhaar.

OTP will be sent to your mobile number registred with UIDAI. If your mobile number is not registered with UIDAI,

3. Social Category: Applicant’s caste: General/SC/ST/OBC is needed. For categories other than general, proof of belonging to that category may be asked by appropriate authority, if and when required.

4. Gender- The Applicant can select gender of Entrepreneur.

5. Physically Handicapped- The Applicant can select Physically Handicapped status of Entrepreneur

6. Name of Enterprise- The Applicant must fill the name by which his/her Enterprise is known to the customers/public and is a legal entity to conduct business. One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number as Enterprise 1 and Enterprise 2 etc.Combination of same Aadhaar Number and Enterprise Name can be aadded second times. Only additinal details can be added or deleted at the time of editing

7. Type of Organization- The Applicant may select from the given list the appropriate type of the organisation for his/her enterprise. The Applicant must ensure that he/she is authorised by the legal entity (i.e. enterprise being registered for Udyog Aadhaar) to fill this online form. Only one Udyog Aadhaar number shall be issued for each enterprise.

8. PAN Number - The Applicant have to enter PAN Number in case of Co Operative,Private Limited, Public Limited and Limited Liability Partnership It. Will be optinal in remaining type of Organisation.

9. Location of Plant- The Applicant may add multiple plant location in one registration by clicking Add Plant button.

10. Official Address- The Applicant should fill in the appropriate field the complete postal address of the Enterprise including State, District, Pin code, Mobile No and Email.

11. Date of Commencement- The date in the past on which the business entity commenced its operations may be filled in the appropriate field.

12. Previous Registration Details(if any)- If the Applicant's enterprise, for which the Udyog Aadhaar is being applied, is already issued a valid EM-I/II by the concerned GM (DIC) as per the MSMED Act 2006 or the SSI registration prevailing prior to the said Act, such number may be mentioned in the appropriate place.

13. Bank Details- The Applicant must provide his/her bank account number used for running the Enterprise in the appropriate place. The Applicant must also provide the IFS Code of the bank's branch where his/her mentioned account exists. The IFS code is now a days printed on the Cheque Books issued by the bank. Alternatively, if the Applicant knows the name of the Bank and the branch where his/her account is there, the IFSC code can be found from website of the respective Bank.

14. Major Activity- The major activity i.e. either "Manufacturing" or "Service" may be chosen by the enterprise for Udyog Aadhaar. If your enterprise involves in both type of activities and if major work involves in Manufacturing and small portion of activity involves in Service sector then select your major activity type as "Manufacturing" and if major work involves in Services and small portion of activity involves in Manufacturing then select your major activity type as "Services"

15. National Industry Classification Code(NIC Code)- The Applicant may choose multiple National Industrial Classification-2008 (NIC) Codes to includes all their activities. Which means user can select multiple NIC code of Manufacturing and Service sector by clicking "Add More" button.If you want to add Manufacturing then select "Manufacturing" radiobutton and keep on adding by clicking "Add More" button otherwise if you want to add Service then select "Services" radiobutton and keep on adding by clicking "Add More" button. The NIC codes are prepared by the Central Statistical Organisation (CSO) under the Ministry of Statistics and Program implementation, Government of India.

NIC Code LIST: https://udyamregistration.gov.in/docs/NIC-code-for-MSME-classification-defination.pdf

The Applicant may use National Industrial Classification-2008 (NIC) Codes searching facility to avoid 3 steps selection process.

Example: User has to write matching key word (2 or more characters) in Search text box in Column No 11 . Then all related NIC CODEs will be listed (including Nic 2 Digit, Nic 4 Digit & Nic 5 Digit) with code and description. If User selects NIC 5 Digit code, then automatically all the related fields(like NIC 2 Digit, 4 Digit, 5 Digit & Enterprise Type) at column 11 will be automatically filled. Same way, If user selects NIC 4 digit, then related field of 2 digit NIC Code will filled, but user has to select NIC 5 digit from drop down(In this case 2 steps are required).

Nic Code not covered under MSME https://udyamregistration.gov.in/docs/OM_UAN_17_7_2020.pdf

16. Person employed- The total number of people who are directly been paid salary/ wages by the enterprise may be mentioned in the appropriate field.

17. lnvestment in Plant & Machinery / Equipment- While computing the total investment , the original investment ( purchase value of items) is to be taken into account excluding tho cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI. If an enterprise started with a set of plant and machinery purchased in 2008 worth Rs. 70.00 lakh has procured additional plant and machinery in the year 2013 worth Rs. 65.00 lakh, then the total investment in Plant & Machinery may be treated as Rs. 135.00 lakh.

18. DIC- The Applicant, based on the location of the Enterprise, has to fill in location of DIC. This Column will be active and show option only when there are more than one DIC in the district. In fact if there is only one DIC in the district system will automatically register you in the same DIC.

19. Submit- The Applicant must click on Submit button to generate OTP which will be sent to email id mentioned for registration.

20. The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.

21. Enter Captcha- The Applicant must enter Captcha before clicking Final Submit button.

You can migrate to Udayam (Re-Register) here

UDYAM REGISTRATION FORM - For those already having registration as UAM

https://udyamregistration.gov.in/UdyamRegistrationExist.aspx

UDYAM REGISTRATION FORM - For those already having UAM registration under assisted filling

https://udyamregistration.gov.in/Udyam_AssistedMigration.aspx

SAMPLE CERTIFICATE

Print Udayam Registration Certificate

https://udyamregistration.gov.in/PrintUdyamCertificate.aspx

https://udyamregistration.gov.in/Udyam_Verify.aspx

https://udyamregistration.gov.in/UAM-convert-udyam-msme-free-registration.htm

https://udyamregistration.gov.in/UA/PrintAcknowledgement_Pub.aspx

https://udyamregistration.gov.in/UA/UA_VerifyUAM.aspx

Update/Cancel Udayam Registration:

https://udyamregistration.gov.in/Udyam_Login.aspx

Udyam Registration Form – For New Entrepreneurs (With Pan Yes)

https://udyamregistration.gov.in/docs/process_msme_regisration_new_pan_Yes.pdf

Udyam Registration Form – For New Entrepreneurs (With Pan NO)

https://udyamregistration.gov.in/docs/process_msme_regisration_new_No_pan.pdf

Important to Know

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: --
(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
For the detailed legal framework for classification of MSMEs and Procedure for their Registration https://udyamregistration.gov.in/docs/Udyam%20Registration%20Booklet.pdf

Must Know

Government has organised a full system of Facilitation for Registration Process

An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration'
A permanent registration number will be given after registration.
After completion of the process of registration, a certificate will be issued online.
This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
There will be no need for renewal of Registration.
Our single window systems at Champions Control Rooms and at DICs will help you in the process.
Registration Process is totally free. No Costs or Fees are to be paid to anyone.

FOR EXISTING ENTERPRISES

1. All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
2. All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
3. The existing enterprises registered prior to 30th June,2020, shall continue to be valid only for a period up to the 31st day of December, 2021.
4. An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
PSB Loans in 59 Minutes:
Loans upto Rs.1 Crore for MSMEs within 59 minutes through dedicated Online Portal:
www.psbloansin59minutes.com for GST registered users.
Requirement
👉Name
👉Email Id
👉Mobile No
👉GST No (API Access should be initiated)
👉3 years ITR Copy
👉6 months Bank Statement
👉Networth
👉Personal details (Address etc)

To Apply: https://www.psbloansin59minutes.com/signup
Check Video https://youtu.be/o3eMWRdgzhI for other details.

Disclaimer: The information contained in this blog is for general information & Educational purposes only. Any reliance you place on such information is therefore strictly at your own risk.

CA.VIKRAM KUMAR

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