Ease of Doing Business for MSMEs: Entrepreneur Memorandum – II or Udyog Aadhaar Memorandum (UAM) registrations obtained by MSMEs prior to June 30, 2020, and valid till March 31, 2021, have been offered extension till this year-finish. EM-II and UAM had been replaced by the new registration portal Udyam Registration in July last year following the revised definition of MSME by the government. The Reserve Bank of India (RBI) had clarified last year that current EMs II and/or UAMs of MSMEs obtained prior to June 30, 2020, will continue to stay valid till March 31, 2021, even as MSMEs had to register on the Udyam Registration portal prior to March this year.
“Ministry of Micro, Small and Medium Enterprises has issued an amendment to the original notification No. S.O. 2119 (E) dated 26.06.2020 vide 2347(E) dated 16.06.2021, extending the validity of EM Part-II and UAMs from 31.03.2021 to 31.12.2021. This would facilitate the holders of EM Part-II and UAMs to avail benefits of the provisions under various existing schemes and incentives including Priority Sector Lending benefits of MSME,” MSME Ministry mentioned in a statement.
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Small scale industrial units used to register with the District Industries Centres (DICs) prior to the MSME Development Act, 2006, came into impact. Later beneath the provisions of the act, entrepreneurs had to file EM-I at DICs prior to setting up the MSME and EM-II following starting the production work. Between 2007-2015, 21,96,902 EM-II filings had been recorded, and in between September 2015 and June 30 2020 1,02,32,451 (1.02 crore) UAM registrations had been recorded, according to the MSME Ministry’s annual report 2020-21.
33,55,940 lakh MSMEs had been registered on the new portal Udyam registration, according to the offered information by the MSME Ministry, at the time of filing this report. “It is expected that existing EM Part-II and UAM holders would be able to migrate to the new system of Udyam Registration, which was launched on 1st July 2020, and would avail the benefits of government schemes, thereby paving the way for strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs,” the ministry added. MSMEs would be capable to register on the portal free of charge of price and with no any documents except PAN and Aadhaar card.