Full Guide for Udyam Registration Procedure


Full Guide for Udyam Registration Procedure

The government of India has issued a notification regarding the Udyam Registration procedure. This new process of classification and registration of MSME enterprises under the name of “Udyam Registration” has been launched by the MSME Ministry. The portal for Udyam registration is udyamregistration.gov.in. In this blog we have how you can get MSME Registration Online if you having any kind of trouble then Meraprofit can help you with that.

How to Calculate an Enterprise’s Turnover Limit for Udyam Registration:

1. The Income Tax Act (ITR) or the CGST Act and GSTIN should be used to determine an enterprise’s turnover and exports turnover.

2. For the purposes of MSME categorization, turnover does not include exports of products, services, or both.

3. Self-declaration of turnover is permitted if an enterprise does not have a PAN up until the end of March 2021; beyond that date, a PAN and a GSTIN are required.

How to Calculate Plant and Equipment Investment Value for Udyam Registration:

1. The Income Tax Act of 1961 requires that the Value of Plant, Machinery, or Equipment be obtained from prior years’ ITRs.

2. For new businesses without an ITR, the promoter’s self-declared investment in equipment or machinery will be used to determine the MSME classification. However, following the 31st of March of the fiscal year in which it submits its first ITR, such relaxation shall expire.

3. The purchase price of a piece of machinery or equipment will be used for categorization in the case of new businesses without ITRs (where the value of the investment is disclosed on a voluntary basis). GST paid on the invoice is not included in the purchase value. The worth of used products is taken into account while determining investment value.

4. The value of an investment in plant and machinery shall not include the cost of those goods listed in Explanation I to sub-section (1) of Section 7 of the Act. For instance: – Costs associated with industrial safety equipment, research and development, and pollution control are omitted.

5. All physical assets, except real estate, buildings, furniture, and fixtures, shall also be referred to as “plant and machinery” or “equipment.”

The definition of “plant and machinery” or “equipment” under Udyam registration should be the same as that given to “plant and machinery” under the 1962 Income Tax Rules.

Whether Investment and Turnover Criteria Should Be Checked Separately or Collectively for MSME Classification –

Businesses must meet both requirements in order to be categorised as micro, small, and medium-sized. An organisation is to be categorised as a micro, small, or medium enterprise based on the present value of the investment and turnover. Future firms that exceeded the investment or turnover ceilings set for their current category will no longer be included in that category and will be moved to a higher category. However, no business may be put in a lower category until it falls below the ceiling amounts set for its current category in terms of both investment and turnover.

A business with several GST registrations is not treated as having multiple MSME registrations. The amount of investment and revenue should be verified on a PAN India basis, meaning that total values under a Permanent Account Number (PAN) should be taken into account when determining whether an organisation is a micro, small, or medium-sized business.

Advantages of MSME Registration:

1. The Udyam registration portal will be integrated with the State Government portals GeM (Government e-Marketplace), CPPP (Central Public Procurement Portal), and others. MSMEs get easy access to their market place, e-tender process, and other benefits and services thanks to connectivity with other portals.

2. Because of its interaction with TReDS and SAMADHAAN Portal, Udyam Registration aids MSME Enterprises in receiving payments that have been delayed.

3. A dynamic and QR Code must be included on every Udyam registration certificate. Anyone may obtain the precise information by using a QR Code. Anyone may reach the precise web page of the relevant MSME on the Udyam portal with the use of a QR Code. This will make conducting business easier.

4. A number of additional Ministry of MSME programmes and perks may be accessible with the aid of Udyam registration.

5. Registration with Udyam facilitates obtaining bank loans with low interest rates.

Registration of Current Businesses: –

1. On or after July 1st, 2020, businesses that have been registered under UAM or EM-Part-II must reregister on the Udyam Registration platform.

2. All current businesses that were registered up until June 30, 2020 must be reclassified in line with this notification.

3. Existing businesses that were registered before June 30, 2020 will only retain their legal status through March 31, 2021.

4. A business that has already registered with a Ministry of Micro, Small and Medium Enterprises organisation must do so again with Udyam Registration.

Procedure for Udyam Registration: –

Udyam registration is conducted entirely online. Additionally, it relies on self-declaration and is paperless. No supporting papers or evidence must be supplied in order to register with Udyam. Through the Udyam Registration site, businesses may submit their Udyam Registration forms online. There will be no fees associated with the Udyam Registration process. No matter how many operations an enterprise has, it is not permitted to seek for more than one Udyam registration. Any activity, whether production, provision of services, or both, should be in a single distinctive udyam registration, defined or added.

A certificate will be provided online after the registration procedure is complete. A dynamic QR Code will be included on this certificate.

Required documentation for Udyam registration:

1. The proprietor’s Aadhaar number if an individual.

2. In the case of a partnership company, the controlling partner’s Aadhaar number.

3. In the case of HUF, the Karta Aadhaar number (Hindu Undivided Family).

4. The authorised signatory’s Aadhaar number in the event of a corporation, LLP, cooperative society, or trust.

5. For companies, LLPs, cooperative societies, and trusts, a GSTIN and PAN number are also necessary.

Please be aware that if it is determined that the facts and statistics shown in the Udyam registration are wilfully misrepresented, the business may be subject to such penalties under section 27 of the act.


Bharat Patel

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