Tag: MSME Registration

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MSME

Udyam Registration Portal: Over 25 Lakh MSMEs Registered Through Centre Govt’s Online Initiative

A worker at an MSME firm
A worker at an MSME firm. | Representative image.

The central government is taking several schemes to promote and develop the MSME sector. Certain programmes have been undertaken for the welfare of the micro, small and medium enterprises. One such initiative is the Udyam Registration Portal, which was undertaken to simply the process of registering a firm as an MSME. The registration through the portal has crossed 25 Lakh so far. As per the data shared by Union MSME Minister Nitin Gadkari in Rajya Sabha, a total of  25,07,112 firms have been registered as the micro, small or medium enterprises on the Udyam Registration Portal till March 22, 2021. In November the registration toll stood at 11 lakh. Udyam Registration Portal: GSTIN No Longer Mandatory for Registering MSMEs.

Launched in July last year, the portal aimed to eliminate the excessive paperwork involved in the registering process, making it more efficient and streamlined. The objective of the portal is to provide a single-page registration, consume less time and simplify registering process for MSMEs. The portal has been welcomed by the various existing MSMEs and the business owners who have been planning to get their firms registered under the sector. It has made the process of registration from transparent and user friendly. MSMEs in India: Over 11 Lakh MSMEs Registered So Far on Udyam Online System Since July; Here’s How You Can Register Your MSME Online.

Recently, the government also did away the need to have a GSTIN to register the firm as MSME through the Udyam Portal, following the complaints and criticism from the various groups and business owners in the sector. The business owners can now register under the MSME sector through the portal by using their PAN (Permanent Account Number) cards only,  the GSTIN is no longer a mandatory requirement for the same. It also aims to support several  micro-enterprises, including skilled craftsmen and artisans and other enterprises in the informal sector and unorganised sector, by easing the process of registration.

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MSME

Udyam Registration Portal: GSTIN No Longer Mandatory for Registering MSMEs

MSME (Photo Credit: Wikimedia Commons)
MSMEs (Representational Image)

The government is taking several steps to provide impetus to the enterprises in the MSME sector. Over the last few years, various projects and schemes have been launched by the central and state governments in order to promote and develop the Micro, Small and Medium Enterprises. In lines with the Narendra Modi-led government’s visionary ‘Digital India’ initiative, several efforts have been put in  by the Nitin Gadkari-led MSME Ministry to digitise processes involved in registration of firms under the micro, small and medium enterprises. In order to promote ‘ease of doing business’, steps have been undertaken to streamline all the procedures related MSMEs’ interaction with the government to reduce unnecessary wastage of time and resources and   increase business’ efficiency.

One such initiative by the central government to simplify the registration process for the MSMEs is the launch of the Udyam Registration Portal. Launched in July last year, it was aimed to eliminate the excessive paperwork involved in the registering process and make the work more streamlined. The objective of the portal is to provide a single-page registration, consume less time and simplify processes of registering any enterprise under MSME. RBI Extends Deadline For Udyog Aadhaar Memorandum of MSME Registrations Till March 31, 2021.

However, the major issue with the portal being, that as per a notification dated November 26,2020, GSTIN was made  a mandatory condition to register the firm through the Udyam Registration Portal with effect fro April 1, 2021. Following complaints and criticism by various MSME owners and businessmen, the Union Ministry of Micro, Small and Medium Enterprises, have done away with this requirement. MSMEs in India: Over 11 Lakh MSMEs Registered So Far on Udyam Online System Since July; Here’s How You Can Register Your MSME Online.

As per a notification dated March 5, 2020 the MSME Ministry examined the matter related tothe mandatory requirement for filing Udyam Registration with those for filing GST Returns, in the interest of those enterprises that are exempted from filing returns. The business owners can now register under the MSME sector through the portal by using their PAN (Permanent Account Number) cards only,  the GSTIN is no longer a mandatory requirement for the same.

Following the notification last year, various MSME associations said that the measure of making GSTIN mandatory is impacting the registration process as many enterprises are exempt from the mandatory requirement of filing GST Returns as per the Goods and Service Tax Act. They also stated that the annual turnover for several MSME might be less than the threshold limit for exemption from registration under said act.

The Udyam Registration Portal has been a welcomed move by various existing MSMEs and the business owners who have been planning to get their firms registered under the sector. It is has simplified the entire process of registration, making it more user friendly and transparent. It also aims to support several  micro-enterprises, including skilled craftsmen and artisans and other enterprises in the informal sector and unorganised sector, by easing the process of registration.

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Finance Legal Startup

RBI Extends Deadline For Udyog Aadhaar Memorandum of MSME Registrations Till March 31, 2021

Reserve Bank of India
Reserve Bank of India. (Photo Credit: Facebook)

New Delhi, August 24: The Reserve Bank of India on Monday extended the validity of Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) from June 30, 2020, to March 31, 2021. The RBI circular even stated that all the enterprises are required to register online and obtain ‘Udyam Registration Certificate’ to be classified as MSME as per new definition.

Issuing the circular, RBI said, “The existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till June 30, 2020, shall remain valid till March 31, 2021. Further, all enterprises registered till June 30, 2020, shall file new registration in the Udyam Registration Portal well before March 31, 2021.”

Adding more, the circular noted, “‘Udyam Registration Certificate’ issued on self-declaration basis for enterprises exempted from filing GSTR and/or ITR returns will be valid for the time being, up to March 31, 2021.”

Following this, the Ministry of MSME said that the registration for Udyog Aadhaar Memorandum website is up and the registrations are underway. The Ministry said that the need for a document for classification purpose has been dispensed for a paperless approach.

Here’s what MSME tweeted:

Apart from this, the Ministry of MSMEs said in its circular that classification and re-classification of MSMEs is the statutory responsibility of the government. These classifications are done as per the provisions of the MSMED Act, 2006. With this, all lenders will have to obtain ‘Udyam Registration Certificate’ from the entrepreneurs.

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Startup Strategy

Startup Permissions: Here Are Some Licences And Permits Required To Start Your Own Business in India

Permit (Representational Image, Photo Credits: Picpedia)

Starting a business in India requires a set of permission and licenses for its smooth functioning. Fulfilling the legal formalities is one of the first steps which startups should never ignore. Otherwise, there may be huge penalties and other legal complications which will hamper the name and growth of the company.

Depending on your business, there are certain licenses and permissions that are required. Government agencies can fine or shut down a business that operates without a licence.

Business Licence: A legal document that grants you the right to operate a business in your city. It is a permit which indicates that the company has the approval of the government to operate.

Various Kinds of Business Registration: The various kinds of business registration in India are-Private Limited Company, One Person Company, Partnership Firm, Public Limited Company or an NGO/Trust. A business will have to get registered under any of the above type o structure.

Safety Registration/Fire Permits

Depending on the type of business you intend to operate, you may need to get an inspection and permit from the local fire department.

GST Registration:

It has now become mandatory for all businesses to get their GST registration done. It needs to be obtained within 30 days of business incorporation, otherwise, the startup will be subject to heavy penalties.

MSME Registration

MSME Registration can be obtained by micro, small and medium enterprises in India to enjoy few subsidies and benefits in terms of loans, taxation, and other schemes.

Startup India Registration

When the business comes under the definition of a startup as per the DIPP Notification, it can get its Startup India registration done. There are a few criteria for it, for e.g., it has not been more than 10 years from the date of business registration. The annual turnover of the entity for any financial year since its registration has not exceeded Rs. 100 crores.