On June 1, 2020, the Union cabinet approved the modalities and road map for micro, small, and medium enterprises. India aspires to take the next significant step forward. The endeavour to skill India’s activities aimed at economic infrastructure development has promoted the start-up culture and expanded micro-entrepreneurship. The young Indian entrepreneur will want knowledgeable personnel and talented technical staff who are versatile, analytical, and can be a driving force in gaining market share. MSME contributes significantly to the Indian economy, not only in terms of GDP but also in terms of exports and job generation.
Also, Read- udyam registration benefits in hindi
I sought to shed some light on the following in my blog:
1. UDYAM
2. MSME Definition
3. Calculation of Investment
4. Calculation of Turnover
5. The registration procedure,
6. Existing Business Registration
1. UDYAM:
According to an MSME statement dated June 26, 2020, Udyam Registration is a new MSME/UDYOG AADHAAR Registration procedure announced by the Ministry of Micro, Small and Medium Enterprises on July 1, 2020.
2. MSME DEFINITION:
Micro, Small, and Medium Enterprises (MSME) is an acronym for Micro, Small, and Medium Enterprises. Businesses are split into two groups under the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006, businesses are divided into two categories. a. Manufacturing businesses – businesses that manufacture or produce things in any industry. a. Service businesses – those that provide or render services.
3. INVESTMENT CALCULATION:
Investment in plant and machinery or equipment will be calculated using prior years’ Income Tax Returns (ITRs) filed under the Income Tax Act of 1961.
The investment will be based on the promoter’s self-declaration in the event of a new firm with no prior ITR, and this relaxation will end after the 31st March of the financial year in which the business files its first ITR.
The word “plant and machinery or equipment” should have the same meaning as “plant and machinery” in the Income Tax Rules, 1962, adopted under the Income Tax Act, 1961, and refer to the business’s whole physical assets (other than land and building, furniture and fittings).
If the company is new and does not have an ITR, the purchase (invoice) value of plant and machinery or equipment, whether new or used, shall be taken into account on a self-disclosure basis, omitting GST (GST).
4. CALCULATION OF TURNOVER:
Investment in plant and machinery or equipment will be calculated using prior years’ Income Tax Returns (ITRs) filed under the Income Tax Act of 1961.
The GSTIN must be linked to information about an enterprise’s turnover and exports turnover under the Income Tax Act or the Central Goods and Services Act (CGST Act).
Self-declaration will be used to evaluate the turnover-related data of such businesses that do not have a PAN until March 31, 2021, after which a PAN and GSTIN will be required.
5. REGISTRATION PROCESS:
The registration process for the UDYAM Registration Portal is paperless and self-declaratory.
The proprietor’s Aadhaar number will be used in the case of a sole proprietorship, while the controlling partner’s Aadhaar number will be used in the case of a partnership.
A Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust must provide their GSTIN and PAN, as well as their Aadhaar number, if they are a Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust.
Any information gaps from past years when the entity did not have a PAN must be filled out on a self-declaration basis if the entity is correctly registered as an Udyam with a PAN.
A single UDYAM registration might encompass a variety of activities such as production or service, and no company can register for more than one UDYAM.
When a company registers, it is granted a “Udyam Registration Number,” which is a permanent identification number.
You will obtain an e-certificate titled Udyam Registration Certificate after finishing the registration process.
6. EXISTING BUSINESS REGISTRATION:
All present enterprises registered under EM–Part-II or UAM must re-register on the Udyam Registration portal on or after July 1, 2020.
All businesses that were registered before June 30, 2020, will be reclassified, according to this notice.
Existing firms whose licences were issued before June 30, 2020, will only be valid until December 31, 2021.
A company must register with Udyam Registration if it is already registered with another Ministry of Micro, Small and Medium Enterprises organisation.
GRIEVANCE AND REDRESSAL OF ENTERPRISE FACILITIES:
The Champions Control Rooms, which are housed at various Ministry of Micro, Small and Medium Firms institutions and offices, including the MSME-DI, will act as Single Window Systems for easing the registration process and aiding micro, small and medium enterprises in any manner feasible.
District Industries Centres (DICs) would also operate as Single Window Facilitation Systems in their respective districts.
Any person who is unable to file the Udyam Registration for any reason, including a lack of Aadhaar number, may approach any of the above Single Window Systems for Udyam Registration purposes with his Aadhaar enrolment identity slip or copy of Aadhaar enrolment request, bank photo passbook, voter identity card, passport or driving licence, and the Single Window Systems will assist in the filing of the Udyam Registration.
In the event of a discrepancy or complaint, the General Manager of the District Industries Centre in the concerned District will conduct an investigation to verify the details of the Udyam Registration submitted by the enterprise, and then forward the matter to the State Government’s Director, Commissioner, or Industry Secretary, who will issue a notice.