The Union Ministry of Micro, Small and Medium Enterprises (MSME) has begun the new process of classification and registration of enterprises starting from July 1, 2020 under its Udyam Registration programme.
Last week, on June 26, the MSME ministry had issued a notification for the purpose.
The online registration process for MSMEs is paperless and based on self-declaration, with no documents or proof that are required to be uploaded for registering an ‘udyam’ or enterprise. The Adhaar number is be required for registration. A registration number is generated after registration.
Upon completion of the process of registration, a Udyam Registration Certificate carrying a dynamic QR code is issued from which details about the enterprise can be accessed. There is no need for renewal of registration. PAN and GST linked details on investment and turnover of enterprises will be taken automatically from the respective government databases.
The MSME ministry’s online system is to be fully integrated with Income Tax and GSTIN systems. Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME will also have to re-register themselves. No enterprise is supposed to file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one registration.
The government’s facilitation mechanism in the name of single window systems at Champions Control Rooms and at District Industries Centres (DICs) will help people in this process. As the registration process is totally free, no costs or fees are required to be paid in this regard.
The ministry has expressed confidence that this process will be extremely simple, seamless and entrepreneur-friendly. It will set an example in ease of doing business not only in India but internationally by significantly reducing transaction time and costs.
At the same time, the ministry has further clarified that except the www.udyamregistration.gov.in portal of Govt of India and its single window facilitation systems, no other private online or offline system, service, agency or person is authorised or entitled to do MSME registration or undertake any activity related with the process.