New registration process for micro, small and medium enterprise with udyam registration.

What is the meaning of udyam registration?

The ministry of micro, small and medium enterprise issued an order s.o. as of 26th of june, 2021, regulation 2119 has specified new criteria for classifying enterprise as micro, small and medium enterprise as well as the form and procedure for filing the memorandum under the new classification that is udyam registration.

The udyam registration will begin on 1st of july, 2021. Enterprise wishing to register under micro, small and medium enterprise must now do so on the new platform.

How do you register as an micro, small and medium enterprise?

Anyone who wants to start an micro, small and medium enterprise can use the udyam registration portal to get started. The registration is based on self declaration and no paperwork as well as  paper and certificate and proof is required to be uploaded. For registration only your aadhar number would suffice. Furthermore permanent account number and goods service tax related information on the investment and turnover of enterprise will be automatically retrieved from government database.

Suggested read udyog aadhaar print download.

Is it necessary for existing micro, small and medium enterprise to re register on the new portal?

Yes. On or after 1st of july, 2021, those with an entrepreneur memorandum two and udyog aadhaar memorandum registration and any other registration issued by an entity under the ministry of micro, small and medium enterprise will be required to register on the udyam registration portal.

What will happen to existing udyog aadhar certificate if they are not registered on the new udyam registration portal by 1st of july, 2021?

Existing enterprise that were registered under the udyog aadhar memorandum prior to  30th of june, 2021 will only be valid until  31st of december, 2021. Existing enterprise that want to keep their micro, small and medium enterprise designation must register with udyam registration.

What are the classification criteria for investment and turnover as a whole?

For an enterprise to be classified as an micro, small and medium enterprise a set of investment and turnover criteria must be applied.

If an organisation exceeds the ceiling restriction mentioned in either of the two criteria that is investment and turnover as well as it will be removed from that category and placed in the next higher one. In this instance an enterprise current status will be maintained for one year after the end of the registration year.

Only when an enterprise falls below the set ceiling limit in both the investment and turnover criteria will it be put in the lower category. The benefit of altered status will be given from the 1st of april of the financial year following the financial year in which the change occurred.

Also read udyog aadhaar print.

Is there any information that needs to be updated on the new udyam registration portal?

On a self declaration basis an enterprise with an udyam registration number must update its information online in the udyam registration portal including the details of the previous financial year income tax return and goods service tax return as well as any other additional information that may be required. If the essential information is not updated within the timeframe indicated in the online udyam registration site the enterprise status will be suspended. Based on the information provided the micro, small and medium enterprise categorization will be updated.

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