Zero-expense MSME registration portal Udyam Registration launched by the government in July last year has registered 31.56 lakh entities as of June 2, 2021, according to the MSME Ministry’s information. As per the MSME Ministry annual report 2020-21, there have been 1.02 crores Udyog Aadhaar Memorandum (UAM)-registered MSMEs amongst September 2015 and June 2020 apart from practically 22 lakh units registered below Entrepreneur Memorandum II amongst 2007 and 2015. Overall, as per the last survey documenting India’s MSME population was the National Sample Survey (NSS) 73rd round carried out by National Sample Survey Office in the course of FY16, there have been 6.33 crore unincorporated non-agriculture MSMEs, of which 6.30 crore have been micro firms, 3.31 lakh have been modest enterprises and 5,000 have been mid-sized organizations.
What is Udyam Registration portal?
Small scale industrial units used to register with the District Industries Centres (DICs) just before the MSME Development Act, 2006, came into impact. Later below the provisions of the act, entrepreneurs had to file Entrepreneur Memorandum (EM) element-I at DICs just before setting up the MSME and EM-II immediately after starting the production work. Between 2007-15, 21,96,902 EM-II filings have been recorded and amongst September 2015 and June 30 2020 1,02,32,451 (1.02 crore), MSME registrations have been carried out on the e-filing method below Udyog Aadhar Memorandum (UAM). UAM was replaced by Udyam Registration.
“This will help the government aggregate the data on the number of MSMEs in the country. Moreover, the government would also get data based on the product category, for instance, garment, electronics, gems, auto, etc., and the size of the enterprise along with the investment and turnover. Also, geographically, the government would get the data to understand the density of the MSMEs based on city, state, or district wise. Data is a big thing to harvest and today it is all about data,” Vishwanath, Co-chairman, Industry Affairs Committee, PHD Chamber of Commerce and Industry told TheSpuzz Online.
How to register a new enterprise on the portal?
Udyam Registration is a self-declaration paperless and cost-free-of-expense platform for entrepreneurs to register their enterprises. Businesses do not have to provide any documents or proof except the Aadhaar quantity of the registration. Moreover, the portal will automatically pull PAN and GST-linked facts on investment in the enterprise, according to Udyam Registration given that it is integrated with Income Tax and GSTIN systems. MSMEs are offered a permanent registration quantity and a certificate post-registration. The certificate bears a QR Code from which the facts about the enterprise can be accessed.
What about current organizations?
Businesses with EM-II or UAM registration will have to re-register themselves. Importantly, the Reserve Bank of India (RBI) had last year clarified 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 immediately after July 1, 2020. However, renewal of new registration will not be needed.
“New Udyam portal will be helpful for registration of new businesses. Submission of documents at DIC shall be integrated into the same portal. It will be truly helpful for MSMEs, only if provisions related to delayed payments are enforced in a real sense. Moreover, only 24 per cent of MSMEs among over 1 crore EM-II and UAM registered MSMEs and new ones. However, existing MSMEs may not enthusiastic about registration as it is mere compliance and does not offer great benefits as perceived by them,” Veerendra Jamdade, CEO, Vritti Solutions told TheSpuzz Online.
How numerous Udyam registrations can be obtained by a single enterprise for several manufacturing activities?
While only one Udyam Registration is needed by an MSME, it can add any quantity of activities which includes manufacturing or service or each may possibly below single registration as opposed to earlier when several Udyog Aadhaar registrations have been needed for several factories. “Before the Udyam portal, there were guidelines for MSMEs to take different Udyog Aadhaar registration for their multiple factories. While in the new portal, which requires Aadhaar and PAN, GST details, one can also add new units but the turnover and investment limit will be picked from the company’s balance sheet automatically unlike in UAM, which required only Aadhaar, where you had to provide details manually,” Mukesh Mohan Gupta, President, Chamber of Indian Micro, Small & Medium Enterprises (CIMSME) had told TheSpuzz Online.