Following notification of the revised criteria for classification of MSMEs on 1 June 2020 (refer KM Update below), the Central Government has notified the procedure for filing of registration memorandum for existing and new MSMEs, known as ‘Udyam Registration’ as follows:
For enterprises seeking to become a micro, small or medium enterprise: Online registration is to be filed on 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’) will be assigned a permanent identity number to be known as Udyam Registration Number and an e-certificate, namely, ‘Udyam Registration Certificate’ will be issued on completion of the registration process. There will be no fee for filing Udyam Registration, however, Aadhaar number will be required. The Aadhaar number required is that of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF). In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
Registration of existing enterprises: All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after 1 July 2020. All enterprises registered till 30 June 2020, shall be re-classified in accordance with this notification. The existing enterprises registered prior to 30 June 2020 shall continue to be valid only for a period up to the 31 March 2021. An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self declaration basis.
A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium. If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category. No enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
The manner of calculation of turnover and calculation of investment of plant and machinery for the purposes of such classification has also been specified. Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification. Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN. 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.
To refer to the gazette notification dated 26 June 2020, click here.
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