The quantity of MSME registrations on the Udyam Registration portal will level the 1 crore mark of MSMEs registered below Udyog Aadhaar Memorandum (UAM) in most probably about two-and-a-half or 3-year period from the present 33 lakh, PHD Chamber of Commerce and Industry’s MSME Committee Chairperson Mohit Jain told TheSpuzz Online in an interaction. As of Tuesday, registrations on the new MSME registration portal, launched in July 2020, had crossed the 33-lakh mark from 30 lakh as of May 16, 2021, the obtainable information from the MSME Ministry showed. A total of 1.02 crore MSMEs, as per the government information, had been registered below UAM just after its implementation in September 2015. The new Udyam Registration had replaced UAM in June last year following the government’s revision of the MSME definition in May. Before UAM, MSMEs had to file Entrepreneur Memorandum (EM) element-I at District Industries Centres just before setting up the MSME and EM-II just after starting the production work. Between 2007-15, 21,96,902 EM-II filings had been recorded.
“Udyam Registration has enhanced the speed of the registration process as you can simply do it with just an Aadhaar number. Given that the 33-lakh figure has been achieved in around 11 months, the portal will most likely achieve the 1 crore number in around a two-and-a-half or three-year period — unlike around five years taken for UAM to reach that milestone — because of ease of registration on the new portal. But MSMEs who won’t need it in their daily routine, might not register. This is similar to linking Aadhaar with mobile, I didn’t do it unless the government mandated it for Covid vaccination. They would do it once they have to apply for a government scheme,” Jain told TheSpuzz Online in an interaction.
Importantly, the Reserve Bank of India (RBI) had last year stated that current EMs element II and/or UAMs of MSMEs obtained just before June 30, 2020, will continue to stay valid till March 31, 2021, even as they had to register just before March below Udyam Registration on or just after July 1, 2020. However, now with 33 lakh registrations on the new portal, it is not clear that how lots of of these 33 lakh MSMEs are new enterprises and these that had migrated from EM II and UAM. The government has been so far citing the National Sample Survey (NSS) 73rd round performed by National Sample Survey Office back in FY16 to report that there are 6.33 crore MSMEs in India.
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“This 33-lakh registration might include new MSMEs as well as those who have migrated from previous UAM and EM II registrations while nobody can verify the 6.3 crore number, it is only an estimate that we see. The new registration would tell you the size of the business, geography, sector of business, etc., and which are micro, small, and medium units based on the revised definition,” added Jain.
Meanwhile, there could be factors for MSMEs not registering on the new portal such as poor awareness or easy lack of will if they haven’t faced challenges due to non-registration in their day-to-day activities. Thus the notion for consolidating MSME information in the nation by means of the new portal wants more stringent push by the government in order to map right preparing, structuring, and implementation of its many schemes and record its effect on MSMEs.
“Major issue is the dissipation of knowledge about it among MSMEs on how to go about it. Probably they are not aware of it and on a day-to-day basis, it is not making much of a difference for them. In case there is a provision like you won’t be able to file your balance sheet or apply for your bank loan etc., unless you are registered on this portal, it would help,” stated Jain. The new portal is a self-declaration paperless and absolutely free-of-price platform that automatically pulls PAN and GST-linked information on investment in the business enterprise through registration due to the fact it is integrated with Income Tax and GSTIN systems. MSMEs are offered a permanent registration quantity and a certificate post-registration.