Technology for MSMEs: The Modi government’s new paperless portal to ease MSME registration – Udyam Registration, launched on July 1, 2020, has crossed the 20-lakh-registration mark. As of February 1, 2021, the portal had registered 20,29,095 MSMEs, up 84.4 per cent in the previous 3 months. The quantity of registered MSMEs as of November 7, 2020, stood at more than 11 lakh, according to the information from the MSME Ministry. The newest figure was shared by MSME Minister Nitin Gadkari in a written reply to a query in the Rajya Sabha. Udyam Registration is at present integrated with the Central Board of Direct Taxes and GST networks along with the public procurement portal Government e-Marketplace for finish-to-finish digital registration by MSMEs.
“On 1st July, 2020, after enactment of new definition of MSMEs, a new registration portal ‘Udyam Registration’ has been launched by M/o MSME and so far 20,29,095 MSMEs are registered on the portal in All India,” Gadkari stated in his reply in the upper home of the Parliament on Monday. MSMEs are not necessary to upload any documents or proof except the Aadhaar quantity for registration. The government has also organized a single-window technique at Champions Control Rooms, which are set up at MSME Development Institutes across India, and district industries centres for facilitating the procedure.
Importantly, the Reserve Bank of India has issued a circular in August final year for clarity on the registration of current firms beneath Entrepreneurs Memorandum (EM) component II and/or Udyog Aadhaar Memorandum (UAM). RBI had stated that current EMs component II and/or UAMs of MSMEs obtained just before June 30, 2020, will continue to stay valid till March 31, 2021. According to the ministry, firms had asked for clarity on no matter whether current registrations would stay valid just after the government’s June 26, 2020 notification on the classification of MSMEs as per the new definition and specification of the kind and process for registration with impact from July 1, 2020.
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“The portal will help the government in identifying the possible beneficiaries of various schemes and packages announced for MSMEs such as collateral-free credit, subordinate debt for distressed MSMEs, etc., and pass these benefits directly to them. This will also help in saving time and cost for small businesses,” Sanjiv Layek, Executive Secretary, World Association For Small And Medium Enterprises (WASME) had told TheSpuzz Online.
Out of more than 10 lakh registrations as of October 31, 2020, according to the MSME Ministry, 3.72 lakh units have been registered beneath the Manufacturing segment when 6.31 lakh firms belonged to the Service sector. Moreover, micro-enterprises had the highest share of 93.17 per cent when only 5.62 per cent and 1.21 per cent have been represented by tiny and medium enterprises respectively.