Tag: Udyam Registration Portal

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MSME

Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!

Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!
Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!

The Ministry of Micro, Small, and Medium Enterprises (MSME) has extended the validity of Entrepreneurs Memorandum (EM) Part-II and Udyog Aadhaar Memorandums (UAMs) from March 31 to December 31, 2021.

This extension will provide a sigh of relief as it will facilitate the holders to avail the benefits of the provisions under various existing schemes and incentives. The numerous benefits will also include Priority Sector Lending benefits for MSMEs.

All enterprises registered until June 30, 202, were earlier required to file a new registration on the Udyam Registration Portal before March 31, 2021.

UAM is a single-page registration form that involves a self-declaration format. In this form, the MSME entrepreneur will have to self-certify the existence of his/her enterprise, bank account details, owner`s AADHAR details, and other required official information.

According to an IBEF report, India has about 6.3 crore MSMEs majorly dominated by micro-enterprises, and the number of registered MSMEs grew 18.5 percent Y-o-Y to reach 25.13 lakh (2.5 million) units in 2020 from 21.21 lakh (2.1 million) units in 2019.

As of June 17, 2021, the portal has facilitated the registration and classification of more than 33 lakh enterprises, as per the official data.

According to the official statement issued by the MSME ministry, “the said amendment has been carried out considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions, and government departments dealing with the interest of MSME Sector”.

The MSME ministry expects the smooth migration of the existing UAM holders to the new system of Udyam registration, which was launched in July 2020. They would avail the benefits of the government schemes, thereby paving the way for empowering & strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs.

It is a one-time registration, and hence, no renewal is necessary. A permanent registration number is provided post the registration, and after completion of the process, an online certificate will be issued.

The enterprises can register for free on https://udyamregistration.gov.in  and without any documents. However, they will require PAN and Aadhaar cards for registering on the Udyam portal.

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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.