MSME Udyam Registration- Process, Benefits, Updation, Cancellation

The Indian Government is promoting micro, small, and medium enterprises. Setting up businesses, without facing legal hassles, becomes smooth under professional surveillance. Things have been simplified since the facility of filing online application has been introduced. Registering for an MSME becomes easier, simplified, and less time consuming. There are umpteen advantages that a business can enjoy after registering under MSME.

By following a simple procedure and completing all formalities, the business gets entitled to different benefits and upgrading at reduced rates & fees. For deeper insight, the write-up below for perusal will throw light on a lot of pivotal details related to MSME.

Register a Micro, Small and Medium Enterprise

An individual willing to set up a micro, small or medium enterprise requires filing Udyam Registration online in the Udyam Registration portal, based on self-declaration. It doesn’t require uploading documents, papers, certificates or proof.

Soon after registration, an enterprise referred to as “Udyam” in the portal is assigned a permanent identity number i.e. Udyam Registration Number.

After the completion of the online registration procedure, the e-certificate called Udyam Registration Certificate will be issued by the authorities.

What is UDYOG Aadhaar?

Every business in the market, be it small scale or large scale, is allotted Udyog Aadhaar. It is an identity for a business active in the market and registered under MSME. The 12-digit identity number is issued to all small & medium scale enterprises and industries by the MSME Ministry. Every business is thus registered under the MSME category through the unique identification number.

Difference between Udyog Aadhaar, MSME & SSI

Previously, Udyog Aadhaar was identified by the name of MSME registration. Now onwards, the process of registration has been converted from MSME registration to Udyog Aadhaar registration.

·         SSI vs. MSME

To a great extent, there’s nothing much that can be distinguished between SSI and MSME. Small scale industries (SSI) were initiated alongside MSME Development Act, 2006. The sole aim for the act is to develop the SSI sector.

Eligibility

Existing MSME Classification

·         Sector Criteria Micro Small Medium

·         Manufacturing Investment < Rs.25 lakh < Rs.5 crore < Rs.10 crore

·         Services Investment < Rs.10 lakh < Rs.2 crore < Rs.5 crore

Revised MSME Classification

Criteria Micro Small Medium*

Investment & Annual Turnover < Rs.1 crore & < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore

Where to Apply:

Apply online without at paying fees at https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm

BENEFITS OF UDYOG AADHAAR CERTIFICATE

·         Receiving loan from bank(s) becomes simplified

·         Shield against payments that are delayed

·         Zero charges for UAN

·         Simplified process to gain approval, license, and registration

·         Less electricity bill privilege

·         Discounted trademark registration (up to 50%)

·         Facility to open current account

·         Compensation on ISO certificate fees

·         Easy acquisition for government MSME tenders

·         Exclusion from direct tax laws (promotion subsidy under MSME)

·         1% bank OD subsidy

·         Authorized by the Indian Government    

Help to MSMEs to recover outstanding payments:

Government of India Ministry of Micro, Small & Medium Enterprises

·         According to the Sec-8, Insolvency and Bankruptcy Code, 2016, active creditor of a company/firm can serve a demand notice in case of issues in the payment on the due date.

·         Active creditors can choose/opt for corporate insolvency resolution under the provision of Section 9 of the IBC Code.  It is applicable in cases of payments under INR 1 lakh.

Micro & Small Enterprises (MSEs) can visit the Samadhaan portal. It is the portal with the `Information Utility (IU)’ of National e-Governance Services Ltd. (NeSL).

https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx

A link to MSEs for logging into NeSL-IU will be sent. It allows checking respective digital signatures attesting the info on the portal

       I.            The NeSL will upload the copy of unpaid invoices. With permission from MSEs, the information could then be shared to other lenders like Banks, NBFCs, rating agencies and other MSMEs concerning the defaulting buyers.

    II.            MSE can share the details of unpaid invoices on NeSL portal.

 III.              This will pressurize them for clearing outstanding payments.  

GUIDELINES FOR FILING AADHAAR UDYOG FORM

1. Aadhaar Number: 12-digit Aadhaar number of the applicant is mandatory.

2. Name of the owner: Applicants are expected to fill the name stringently as stated in the Aadhaar Card issued by UIDAI.

 E.g. If Anand Kumar Sahu has his name as Anand Sahu, the same name must be entered. If the name fails to match with the Aadhaar number, the applicant will not be able to fill the form.

Aadhaar Validation-

·         Validate Aadhar- The option ‘Validate Aadhaar’ must be clicked for verification. Only after completing the procedure , the user can fill the form.

·         Reset- By clicking the reset button, the fields like Name of the Owner and Aadhaar Number can be cleared.

·         Applicant will receive the OTP on the mobile number registered with UIDAI

3. Social Category: Applicant’s caste: General/SC/ST/OBC is needed. Society sections, other than general, submitting the documents like caste certificate is mandatory, when demanded by the appropriate authority.

4. Gender- This section is to determine the gender of the entrepreneur/applicant.

5. Identification/Physically-Handicapped- If applicant is handicapped/specially-abled, he/she can select the section or ignore

6. Name of Enterprise- Applicants are expected to fill the name of the enterprises that will be legally known to the public. An applicant with multiple enterprises active in the market can be registered for separate Udyog Aadhaar with the same number for both enterprises. The combination of the same number can be integrated the second time and only additional details can be deleted/amended while editing.

7. Type of Organization- All applicants are allowed to choose the type of business/nature of business enlisted in list. Also, it is mandatory for the applicant to assure the legal authorization from legal entity i.e. enterprise being registered for Udyog Aadhaar, to fill the online form. Each enterprise shall be provided one Udyog Aadhaar number.

8. PAN Number – PAN number needs to be entered by the applicant if the business is co-operative, private limited, and limited liability partnership (LLP). Things will be optimal is the rest of the organization structure.

9. Location of Plant- Applicants are allowed to add multiple locations of the corporate site under registration by clicking the option Add Plant.

10. Official Address- Filling the complete postal address of the Enterprise including State, District, Pin code, Mobile No., and Email are mandatory details that must be filled by the applicant.

11. Date of Commencement- This section is also essential to be filled by the applicant. There must be sufficing record as when the business was commenced. 

12. Previous Registration Details(if any)- In case the applicant’s enterprise already holds a valid EM-I/II for which Udyog Aadhaar is applied, by the GM (DIC) under MSME Declaration Act 2006 or SSI registration that prevailed prior, such details must be mentioned correctly.

13. Banking Details- It is essential for the applicant to provide his/her bank account number used for transactions for enterprises in the appropriate place. The applicant must share the IFS Code of the bank’s branch where his/her mentioned account exists. The IFS code is nowadays printed on the Cheque Books issued by the bank. Alternatively, if the Applicant knows the name of the Bank and the branch where his/her account is there, the IFSC code can be found from website of the respective Bank.

14. Key Activities- nature of business like “Manufacturing” or “Service” can be chosen by the enterprise for Udyog Aadhaar. In case the business is bi-nature i.e. engaged in manufacturing and service, it must be categorized under manufacturing. Enterprises, serving as manufacturers on a bigger note and offering service additionally must be categorized under manufacturing. Similarly, enterprises focusing on the service sector must include service category and do not include manufacturing in their details.

15. National Industry Classification Code (NIC Code)- The Applicant can choose two or more National Industrial Classification-2008 (NIC) Codes to encapsulate all their activities. It can be done by selecting multiple NIC code of Manufacturing and Service sector and clicking “Add More” button.

If you want to add Manufacturing then

·         select “Manufacturing” radiobutton and

·         keep on adding by clicking “Add More” button

If you want to choose the service option then

·         select “Services” radiobutton

·         keep on adding by clicking “Add More” button

Central Statistical Organization (CSO), under the ministry of statistics & program implementation (Govt. of India), is responsible for creating NIC codes. 

NIC Code LIST: https://udyamregistration.gov.in/docs/NIC-code-for-MSME-classification-defination.pdf

Example: The user requires filling the exact keywords (2 or more characters) in Search text box in Column No 11. Then all related NIC CODEs will be listed (including Nic 2 Digit, Nic 4 Digit & Nic 5 Digit) with code and description.

If User selects NIC 5 Digit code, then automatically all the related fields (like NIC 2 Digit, 4 Digit, 5 Digit & Enterprise Type) in column 11 will be automatically filled. In the same manner, If user selects NIC 4 digit, then related field of 2 digit NIC Code will filled, user still requires selecting NIC 5 digit from drop down(In this case 2 steps are required).

Nic Code not covered under MSME Retail & Wholesale trades included as MSMEs

16. Number of Employees- The applicant requires stating the workforce that is being paid by the enterprise. It is vital to assure the exact number of employees and wage earners.

17. lnvestment in Plant & Machinery / Equipment- While tallying the total investment , the original investment (buying cost of items) should be taken into consideration. However, it can exclude the resources spent for pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI.

If an enterprise started with a set of plant and machinery purchased in 2008 worth Rs. 70.00 lakh has procured additional plant and machinery in the year 2013 worth Rs. 65.00 lakh, then the total investment in Plant & Machinery may be treated as Rs. 135.00 lakh.

18. DIC- Applicant requires filling in location of DIC based on the location of the Enterprise. This specific column will remain active and display option only when there are multiple DIC in the district. On the other hand, the system will automatically register you in the same DIC when there’s only one DIC in the region specified.

19. Submit- The OTP will be generated after the applicant submits all details. The OTP generated will be sent on the registered email address/mobile number.

20. The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.

21. Enter Captcha- Applicant must enter Captcha before clicking Final Submit button.

You can migrate to Udayam (Re-Register) here

UDYAM REGISTRATION FORM – For those already having registration as UAM

https://udyamregistration.gov.in/UdyamRegistrationExist.aspx

UDYAM REGISTRATION FORM – For those already having UAM registration under assisted filling

https://udyamregistration.gov.in/Udyam_AssistedMigration.aspx

Print Udayam Registration Certificate

https://udyamregistration.gov.in/PrintUdyamCertificate.aspx

Udayam Verify

https://udyamregistration.gov.in/Udyam_Verify.aspx

Forgot UAM-Udayam Registration No

https://udyamregistration.gov.in/UAM-convert-udyam-msme-free-registration.htm

Print Udyog Aadhaar Registration Certificate

https://udyamregistration.gov.in/UA/PrintAcknowledgement_Pub.aspx

Udyog Aadhaar Memorandum – Online Verification

https://udyamregistration.gov.in/UA/UA_VerifyUAM.aspx

Update/Cancel Udayam Registration:

https://udyamregistration.gov.in/Udyam_Login.aspx

Udyam Registration Form – For New Entrepreneurs (With Pan Yes)

https://udyamregistration.gov.in/docs/process_msme_regisration_new_pan_Yes.pdf

Udyam Registration Form – For New Entrepreneurs (With Pan NO)

https://udyamregistration.gov.in/docs/process_msme_regisration_new_No_pan.pdf

Vital Information You Must Know

An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: —

Ø  A micro enterprise, where the investment in plant and machinery or equipment does not exceed INR one crore and turnover doesn’t surpass INR five crore

Ø  A small enterprise, where the investment in plant and machinery or equipment does not exceed INR ten crore and turnover remains below INR fifty crore; and

Ø  A medium enterprise, where the investment in plant and machinery or equipment do not surpass INR fifty crore and turnover stays below INR two hundred and fifty crore.

For the detailed legal framework for classification of MSMEs and Procedure for their Registration

https://udyamregistration.gov.in/docs/Udyam%20Registration%20Booklet.pdf

Information You Should Know

There’s a full-fledged system for facilitating the registration process organized by the Govt. of India:

·         An enterprise, for the purpose of this process, will be identified as Udyam and its Registration Process will be known as ‘Udyam Registration’

·         A permanent registration number will be allotted after registering successfully

·         An online certificate will be issued for certifying the successful completion of registration

·         This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.

There’ll be no requirement for renewing the registration

All applicants will be assisted by single-window systems at the Champion Control Rooms at DICs.

Registration Process is free of cost. No applicant is required to pay any fees in any form to individuals demanding fees.

ADDITIONAL INFORMATION FOR REGISTRATION PROCESS

1. The form for registration will be as provided in the Udyam Registration portal.

2. No fee is applicable for Udyam Registration.

3. Aadhaar number is mandatory for Udyam Registration

4. The Aadhaar number must be of the proprietor, in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).

5. In case of a Company or a Limited (Pvt. Ltd.), Liability Partnership (LLP) or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall be responsible for providing details like GSTIN and PAN along with its Aadhaar number.