What is a Udyam registration Certificate?
The enterprises who are running their business or wish to start their business in India should have a certain license or certificate which is provided by the Ministry of MSME for their enterprises, this registration certificate is called Udyam registration. In short, MSMEs 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 UDYAM 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. The 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 in prevalent Udyog Aadhar registration to register under MSME. By replacing this old process, now Udyam registration is in operation, which works under the MSME ministry.
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 and provide the enterprise’s several benefits under the schemes which are run by the Indian government. Small companies and enterprises can register themselves easily under MSME.
Before coming to the topic we concisely describe the MSME.
MSME
It is a branch of GOI and is the highest executive body to formulate and administer the rules, regulations, and framework 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 :
Main changes in MSME 2021
The central government’s response to the recommendations of the Advisory Committee for MSME Udyam Registration is as follows:
- The government established certain standards for designating businesses as micro, small, or medium-sized.
- Also informed about the form and procedure for filing the memorandum (Udyam Registration) beginning July 1, 2020.
No need for GST number for Udyam registration
The Indian government has taken another step toward a paperless, streamlined, and time-saving system. During Udyam Registration, a GSTIN number is no longer required for Micro, Small, and Medium Enterprises (MSME).
On March 5, 2021, the Ministry of MSME issued a notification to replace the requirement for filing Udyam Registration with the filing of GST Returns. The proprietor can use his or her PAN to register the business.
According to a notification issued by the Indian government on June 26, 2020, GSTIN was required for registration on the Udyam Registration Portal.
But the national government had received a large number of dissatisfaction from various MSME associations.
Because making the GSTIN mandatory is impacting the registration process. Because of this Many businesses have been exempted from filing the GST returns as per the mentioned notification
Following that, the problem was investigated by the central government, and the aforementioned notification for relaxation was issued by the central government.
Besides this, the relaxation will support the many micro and small enterprises to obtain the MSME registration easily.
And the firm’s proprietor may use his or her PAN for the registration of the business firm on the Udyam registration portal.
Now we will tell you the prior process for the registration as well as the recent for MSME 2021:
Changes MADE IN 2021 for the MSME registration
- Before the introduction of the new notification, Entrepreneurs had the option to register for more than one business with the Udyog Aadhar registration.
But now, you can only register one business with the one Udyam registration,
- During the registration, UAM was issued, UAM stands for Udyog Aadhar Memorandum.
Now, Udyam registration is issued only after filling out the application for MSME registration and the Udyam registration certificate is issued only after the completion of verification.
- Earlier for the manufacturing and service sectors, there were separate provisions for both.
Now, for the manufacturing and service sectors, there is the same provision for their classification, and the manufacturing and service sectors 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.
- there was no need for PAN for the registration,
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.
