Udyam Registration - Reimbursement Of Udyog Adhaar
A micro, small and medium enterprise (MSME) will now be referred to as Udyam Registration as per the notification issued by the Ministry of MSME on 26 June 2020. The ministry has also come up with detailed norms for the classification of MSMEs and also the process for registration and the arrangements made by the ministry for regulation during this process. The notification interpreted that exports of products or services or both shall be prohibited while calculating the turnover of any enterprise whether micro, small or medium (MSME). It further declared that the registration process is called Udyam Registration. The Ministry Of MSME’s declared that Udyam Registration is filed online with supported self-declaration with no need to upload documents, papers, certificates or proof. Just on the basis of Aadhaar number an enterprise can be registered. The new online registration is made available from 1 July 2020.
Classification of enterprises
An enterprise shall be defined as a micro, small or medium enterprise on the idea of the subsequent norms, namely –
Micro-Enterprise - A micro-enterprise is defined under Udyam when the investment in machinery or equipment sector or any enterprise does not exceed one crore rupees and turnover doesn’t exceed five crore rupees
Small Enterprise- A small enterprise where the investment in any service sector or enterprise doesn’t exceed ten crore rupees and turnover doesn't exceed fifty crore rupees according to the new definition of Udyam Registration.
Medium Enterprise- According to the new definition of medium enterprise under Udyam where the investment in the service sector must not exceed fifty crore rupees and turnover doesn’t exceed 250 crore rupees.
Re-Classification Of Enterprises According To Udyam
If a person wants to start a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no obligation to upload documents, papers, certificates or proof. On registration, an enterprise also referred as Udyam Registration will be assigned a permanent unique identification to startup a new Udyam Company. After the completion of the registration process an e-certificate, by the name of Udyam Registration Certificate will be issued
Aadhaar number must be required for Udyam Registration. The Aadhaar number needs to 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).
In case of a Private Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN together with its Aadhaar number.
In case an enterprise is correctly registered as an Udyam with PAN, any insufficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
Udyam Registration must not be filed by any enterprise more than once: Provided that any number of activities including manufacturing or service or both may be stated or added in one Udyam Registration. Whoever deliberately misinforms or attempts to conceal the self-declared facts and figures appearing within the Udyam Registration or update process shall be liable to such penalty as specified under section 27 of the Act.
Registration of existing enterprises
All existing enterprises registered under EM–Part-II or UAM will have to register again on the Udyam Registration portal on or after the 1 st day of July, 2020. All enterprises registered till 30th June, 2020, shall be redirected according to the notification. The existing enterprises registered prior to notification issued on 30th June, 2020, shall continue to be valid
Udyam Registration Due Date (Important Note)
As per the new notification issued by the Ministry Of MSME’s on 26.06.2020, all existing (old and new) MSME companies must remodelled to Udyam immediately. Just register at Udyam Registration.
As per the Ministry of MSME notification issued on 26.06.2020 , every business unit registered under MSME / Udyog Aadhaar / SSI shall be treated as a valid MSME up to 31st March 2021 only.
Therefore, all the existing (old and new) enterprises must apply to Udyam Registered Company on or before 31st Mar 2021 to avail latest Udyam Benefits.
The Indian government is coming up with new strategies, norms, reforms, and schemes to encourage businesses in India. If you are one of the upcoming startups or entrepreneurs and looking for Udyam registration.
Then feel free to fill this Udyam registration form, and make your business registered under the Udyam.
If you need any further help or queries, feel free to talk to our Udyam registration expert. If you intends to register a new Udyam Company you can apply through Udyam registration form @ soleproprietor.in
Any Indian citizen with a current account in the name of their business can start a sole proprietorship. Registration may or may not be required, depending on what business you are planning to establish. However, to open a current account, banks typically require a Shops & Establishments Registration.
To open a current account, you need proof of the existence of your business. Most banks will ask for a Shops & Establishments Act Registration. In addition, you will need a PAN card and address and identity proofs.
A sole proprietorship business does not take more than 15 days to open-up and get running. This simplicity makes it popular among the small traders and merchants. It’s also much cheaper, of course. This is the other reason why it’s the most widely used business structure.
Most local businesses are run as sole proprietorships, from your grocery store to a fast food vendor, and even small traders and manufacturers. This is not to say that larger businesses do not operate as sole proprietors. Even some jewellery shops are sole proprietors, but this is not recommended.
To start a sole proprietorship, you would need address and identity proofs, PAN card, all KYC documents and rental agreement or sale deed (in case of Shops & Establishment Act Registration).
This depends on the business you’re in. It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under Shops and Establishments Act.
The registrations controlled by the central government — service tax, for example — can be availed of online, whereas the state-government-controlled ones may or may not be. In some technologically advanced states, such as Karnata, they are, whereas in others they may not be.
You can always choose to do so. The procedure is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships and private limited companies at a later stage.