MSME REGISTRATION

Business entities that fall under the category of MSME (Micro,Small and Medium Enterprises)need to register under the MSME Act,2006.Although the MSME Registration is not mandated by statute,it is beneficial for such enterprises to avail benefits such as exemptions for excise duty, subsidies on power tariff, lower interest rates, subsidies on tax etc. Any kind of business can apply for MSME Registration subject to certain conditions. 

Applicability for MSME registration:

ENTITY TYPE	INVESTMENT (in plant machinery or equipment)	TURNOVER
MICRO	One crore	Five crore
SMALL	Ten crores	Fifty Crores
MEDIUM	Fifty Crores	Two fifty crores

 

Registration process:

• The form for registration shall be as provided in the Udyam Registration portal.
• There will be no fee for filing Udyam Registration.
• Aadhaar number shall be required for Udyam Registration.
• The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of karta in the case of a Hindu Undivided Family (HUF).
• In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
• In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
• No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration.
• MSME certificate will be generated on real time basis, also called as “Udyam Registration Certificate.” 

Registration of existing enterprises:

• All existing enterprises registered under Udyogaadhar shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
• All enterprises registered till 30th June, 2020, shall be re-classified in accordance with cretaria as mentioned above.
• The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021.
• An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

Updation of Information and change of status: 

• An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self declaration basis.
• Depending on the information updated by the enterprise, the status of entity shall be changed from lower to higher or vice versa.

External Links:

• Micro, Small and Medium Enterprises Development Act, 2006