Based on the recommendation of the advisory committee the government of india notified a new procedure of classification and registration of firms under the micro, small and medium enterprise development act, 2006 which would take effect on 1st of july, 2021. The amendment aims to alleviate the challenge experienced by the micro, small and medium enterprise sector allowing them to take advantage of government program and kick start their enterprise during and after the pandemic.
A new system of classification.
For the definition of micro, small and medium enterprise and udyam registration the government added a new turnover condition and improved the investment criteria.
The government established a single window facilitation system under which a suo moto application can be filed without any additional fees. Nobody else even government agency is allowed to undertake anything connected to this.
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Documents necessary for registration include the following.
Form for self declaration.
Aadhaar number.
Goods services tax identification number and permanent account number.
Fees for registration.
There are no charges.
Highlights.
The distinction between manufacturing and service enterprise criteria has been integrated under the new process and a new turnover criterion has been added.
On the basis of self declaration a new business that meets the criteria for micro, small and medium enterprise can file udyam registration online through the udyam registration portal.
Existing enterprise that were registered before 30th of june, 2021 will only be valid till 31st of december, 2021.
All enterprise that were registered before 30th of june, 2021 will be classed according to the new criteria.
Existing firm registered under entrepreneur memorandum part two and udyog aadhaar memorandum must apply for de novo registration on or after 1st of july, 2021.
The department will provide a permanent udyam registration number and an electronic certificate titled udyam registration certificate after registration. It will contain a dynamic quick response code that can be used to access information about the company.
For any number of activity whether production and service as well as both only one registration is required. To put it another way a company can only file one udyam registration.
If a business is registered with another micro, small and medium enterprise organization such as the khadi village industry commission and the coir board it must also register with udyam registration.
Entity that do not have a permanent account number and goods service tax identification number have been allowed a grace period until 31st of december, 2021 during which time they can register on a self declaration basis until 31st of december, 2021 after which permanent account number and goods service tax identification number will be required.
In the event of a discrepancy and complaint the general manager of the concerned district industry centre will conduct an investigation to verify the details of the udyam registration filed by the firm.
Udyam online registration is free.
The total investment amount and an annual turnover of micro, small and medium enterprise are used to classify them. Micro enterprise are defined as enterprise with a total investment of less than 1 crore and a turnover of fewer than 5 crore. Small enterprise are defined as enterprise with a total investment of fewer than 10 crore and a turnover of fewer than 50 crore. Medium sized enterprise are those with a total investment of less than 50 crore rupees and sales of less than 200 crore rupees.
Enterprise must register as micro, small and medium enterprise through the ministry of micro, small and medium enterprise udyam registration system. Following registration you will receive a certificate as well as a permanent registration number. Description can help you register your micro, small and medium enterprise for free online.
It is not permissible for any business to file multiple registrations. However enterprise can register for as many service operation as they choose.
Those who have an Entrepreneur memorandum part two and any other type of authority issued registration must re register on or after 1st of july, 2020. According to the government mandate all enterprise registered before 30th of june, 2021 will be classed. Existing enterprise that were registered before the 30th of june, 2020 will only be valid until the 31st of march, 2021. Previous registration will no longer be valid after that.
Also read udyog aadhaar print.
Document required for micro, small and medium enterprise registration on the internet.
Registration form from the udyam portal.
Aadhaar card is a unique identification card issued by the government of india. In the case of a proprietorship firm the aadhaar number will be that of the proprietor the controlling partner in the case of a partnership firm and a karta in the case of a hindu undivided family.
The organization and its authorized signatory must submit its goods service tax identification number and permanent account number as well as its aadhaar number in the case of a company and a limited liability partnership as well as a cooperative society a society and a trust.
