The registration form will be available on the Udyam website.
The filing of registration through the portal will be free of charge.
Registration will necessitate the use of the Aadhar number.
Also Read: Print Udyog Aadhaar Certificate
In the case of a proprietorship firm, the Aadhar number will be that of the proprietor, the controlling partner in the case of a partnership firm, and the Karta in the case of a Hindu Undivided Family.
The organization or the authorized signatory must submit its GSTIN and PAN number, as well as its Aadhar number, in the event of a business, a Limited Liability Partnership, a cooperative society, society, or trust.
If there is a gap in information from earlier years when it did not have a PAN, it must be filled out on a self-declaration basis.
No business may have more than two registrations; if the entrepreneur provides both goods and services, he must register under only one name.
Anyone who deliberately misrepresents or seeks to suppress self-declared facts and numbers in the self-declaration form faces a penalty under section 27 of the Act, which carries a punishment of 1000 rupees for the first conviction and a fine of ten thousand rupees for successive convictions.
An enterprise will be assigned a permanent identifying number, known as the Udyam Registration Number when it registers.
Upon completion of the registration process, an e-certificate will be generated.
Information updates and a transition period in classification:
- The firm that already has an Udyam Registration Number will update its information online at the Udyam Registration portal, including the ITR and GST Return details from past years.
- The suspension of its status will occur if the essential information is not updated within the time frame stated in the online Udyam Registration site.
- The categorization of the business is updated based on information provided or acquired from government sources, such as ITRs or GST returns, and will take effect on July 1, 2021.
- In the event of an enterprise’s graduation or reverse-graduation, notification of the change in status will be issued to the company.
- If an enterprise’s investment in plant and machinery or equipment, or its turnover, or both, increases, it will keep its current status until the end of the year in which it was registered.
- If an enterprise’s current category is changed as a result of reverse graduation, reclassification, or change in investment in plant, machinery, equipment, turnover, or both, whether or not it is registered under the Act, the new classification takes effect on April 1 of the following year, not from the date of the change, and the corporation can take advantage of current-year benefits such as tax rebates, deductions, and subsidies, among others.
What is the Udyam Registration Portal’s purpose?
Small scale industrial units had to register with District Industries Centres prior to the MSME Development Act of 2006 (DICs).
Entrepreneurs have to file Entrepreneur Memorandum (EM) part-I at DICs before setting up the MSME. Also, EM-II after starting production activities, according to the Act’s stipulations.
There were 21,96,902 EM-II submissions between 2007 and 2015, and between September 2015 and June 30, 2020, there were 21,96,902 EM-II submissions, MSME registrations on the e-filing system under the Udyog Aadhar Memorandum. Udyam Registration has taken the position of UAM.
This will assist the government in compiling information on the number of MSMEs in the country. Furthermore, the government would receive data based on product categories, such as garments, electronics, diamonds, and automobiles, as well as the size of the business, as well as investment and turnover. Furthermore, the government would receive data in order to assess the density of MSMEs by city, state, or district.
Data is a significant item to harvest, and today it’s all about data,” Vishwanath, Co-chairman, Ph.D. Chamber of Commerce and Industry’s Industry Affairs Committee, told Financial Express Online.
How can I create a new business on the portal?
Udyam Registration is a paperless and free self-declaration tool for entrepreneurs to register their businesses.
Other than their Aadhaar number, businesses are not required to produce any documentation or proof of registration. Furthermore, because it is tied with the Income Tax and GST IN systems, the portal will instantly collect PAN. And GST-linked details on investment in the business, according to Udyam Registration.
MSMEs have a permanent registration number and a certificate after they register. The certificate contains a QR code that may be used to obtain company information.
What about already-established businesses?
Businesses that currently have an EM-II or UAM registration must re-register. Importantly, the Reserve Bank of India (RBI) announced last year.
That current EMs part II and/or UAMs received by MSMEs before June 30, 2021. Will be treated as current EMs part II and/or UAMs will be valid until March 31, 2021. Even if they were required to register under MSME Registration on or after July 1, 2021.
“The new Udyam platform will make registering new businesses much easier. The same interface will be used for document submission at the DIC.
Only if laws relating to delayed payments are implemented in a meaningful way will it be truly beneficial to MSMEs. Furthermore, just 24% of EM-II and UAM registered MSMEs and new ones out of nearly 1 crore.
Existing MSMEs, on the other hand, may be hesitant to register because it is merely a matter of compliance. It does not provide significant benefits, according to Veerendra Jamdade, CEO of Vritti Solutions.
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