All enterprises like micro, small and medium enterprises, in short MSME need a particular type of registration to run their business in the market, so the registration which is needed to run their business is known as the Udyam registration. This registration or license is also known as the MSME registration. This is a government registration that provides them a unique Identity number along with a recognition certificate. This certifies them as micro, small and medium enterprises.
The main concern for this registration is to provide various benefits to MSME enterprises in India by the government. Ministry of MSME introduced a web portal named Udyam registration portal on 1st July 2020 under the MSME act 2006. Before the Udyam registration, another registration was prevalent which was Udyog Aadhar registration to register under MSME. By replacing this old process, now Udyam registration is in operation, which works under the MSME ministry. but still this time Udyog Aadhar registration is in operation, after completing its deadline it will not be in operation.
Need for the Udyam registration
The main reason for the introduction of the Udyam registration is to ease the registration process and minimize the time for the whole process. small companies and enterprises can get registered themselves easily under MSME.
Also, Read – Download the udyam certificate
Before coming to the topic we concisely describe the MSME :
It is a branch of GOI and is the highest executive body to formulate and administer the rules and regulations for the small scale enterprises, called MSME ( micro, small and medium enterprises). MSME comes under the Ministry of MSME.
What were the prior criterias for the registration? And what the changes were made for 2021. both the topic is described below :
As per the ministry of MSME notification, the new registration process has been introduced, this new registration process is known as “ Udyam registration”.
Before introducing this scheme for registration, there was another process which was “ Udyog Aadhar registration”.
I will tell you the prior process for the registration as well as the recent changes MADE IN 2021 for the registration :
Before introducing the new notification, Entrepreneurs had the option to register for more than one business using the Udyog Aadhar registration.
Udyam registration portal in India
But now with one Aadhar, you can register for the Udyam registration, now the enterprise only has one Udyam registration.
During the registration, UAM was issued, UAM stands for Udyog Aadhar Memorandum.
Now, this registration will be issued only after the application and the Udyam registration certificate will be issued only after the completion of verification.
Earlier for the manufacturing and service sectors, there were separate provisions for both their classification. Now, for the manufacturing and service sectors, there is the same provision for their classification, and both define the same limits for the investment and annual turnover.
They had to enter all the figures manually on the basis of self-declaration.
but now, all the figures and details will have to be entered on the basis of ITR and GST. Now manually entered figures will not be entertained.
employees were to be entered in the Udyog Aadhar registration.
Now in the number of employees, gender segregation should be included.
there was no need for PAN for the registration, pan linked was not required.
Now, two supporting documents must be submitted for the Udyam registration, these are PAN and GSTIN for the enterprises.
So these are the key main changes that were made in 2021 for the Udyam registration.
I am sure that all the readers who were ambiguous about the Udyam registration changes or the registration process, would surely be satisfied to get the information.