Udyam Registration - Re-Classification Of Udyog Adhaar
According to the new notification released by the government on 26 June, 2020 notification the upcoming and existing enterprises are required to be registered under the Udyam registration portal. The micro, small, and medium enterprises that were previously registered under UAM or EM I and II had to renew their registration 1st July 2020 onwards. The enterprises that were registered before 30th June 2020 should be reclassified as per the government’s new definition of MSME and the enterprises that have already registered under UAM after 30th June will be valid till 31 June 2020. You can easily check the validity and avail the unique Udyam number for enterprises on msme.e-regisration.co.in
Composite Criteria Of Investment And Turnover Of Enterprises
According to the new definitions imposed by Government:
An enterprise that has an investment of less than 1 crore rupees in plant and machinery, equipment in service sectors, and turnover not exceeding more than 5 crore rupees is known as a micro-enterprise.
A small enterprise or company would be one with an investment of more than 1 crore but less than 10 crores and less than fifty crores turnover.
A medium enterprise accordingly is the one that has an investment of less than 50 crores in plant and machinery or the equipment and its turnover should not exceed 250 crores.
Definitions For The Existing Enterprises
With the reclassification of the MSME, the composite criteria of turnover and investment would decide the category of existing enterprise that was defined by the previous criteria of investment. If a registered enterprise exceeds the investment and turnover price of its present criteria it will be considered in the higher category and similarly, if an enterprise exceeds the lower line referred to in the new definition it would be categorized in the lower category.
The enterprises registered before 30th June 2020 will not be valid if they are not registered under the Udyam memorandum provided by the Government. The enterprises that were registered after 30-06-2020 will be valid until 31-06-2021 of next year.
Is Udyog Aadhar And Udyam Registration The Same?
What Is Udyog Aadhar?
Udyog Aadhar is a simple process that was introduced by the government in 2015 after annuling the entrepreneur’s memorandum to simplify the registration process for MSMEs by giving them the Udyog Aadhar registration and a unique identification number provided that the directorate body provides his/her Aadhar number. The Udyog Aadhar registration process has been out of value as the government has issued the notification for the registration process by availing Udyam number for renewal.
What Is Udyam Registration?
Udyam Registration is the re-classified version of Udyog Aadhaar to bring all the existing and upcoming enterprises under a single registration process following the new criteria Udyam registration will be mandatory for all the Micro, Small And Medium Enterprises for classification and availing the services, subsidies, and schemes provided by the government.
Hence, Udyog Registration and Udyam registration are not the same but they are both registration procedures for the MSMEs. Udyog Aadhar registration will not be needed anymore.
Udyam registration will now provide a number to the enterprises upon receiving the concerned authority’s Aadhar number and within the process time after the Udyam registration, the enterprise has to reupload their information status of GST and ITR in the government portal, otherwise, its stature will be rendered as suspended.
In case of a change in the stature of an enterprise, it will be valued on the provided information of GST costing and ITR in the plant, machinery, and equipment. In case of enhancing the stature, the enterprise will maintain its status until the maturity date of one year from the close of the year of registration. And in the opposite case of degradation of status due to reclassification or changes in investment or turnover or both, the enterprise will receive all the facilities of present status till the next financial year starts.
Benefits Of Udyam Registration
Using the Udyam registration number, any enterprise that is categorized under MSME can avail of the following benefits that are provided by the government:
Easier approval of bank loans and subsidies are given to registered businesses.
MSMEs have a significantly low rate of interest, approximately 1 to 1.5%, which makes it easier for them to avail of bank loans.
The registered enterprises will be getting collateral-free or guarantee-free loans of up to 100 lakh.
For getting tenders and decreasing competition, EMDs or Emerging Market Debts are lent to MSMEs which can help in the primary growth of an enterprise.
Registered entities become eligible for credit-linked capacity subsidy schemes by applying through primary lending institutions.
Special protection against buyers is provided by the government for delayed payment according to the contract or after 45 days after service or delivery.
Full or partial reservation on more than 700 products to increase the marketability and development rate of MSMEs.
Serious concession for electricity bills is given upon applying.
On excise taxes and direct taxes, concession and subsidies are provided depending on the amount of ITR.
Under the ISO reimbursement scheme, financial support is provided on acquiring ISO 9000, 14001, and HACCP certification to strengthen competitiveness and growth.
IPR or Intellectual Property Rights for MSMEs gives them rights for registering for patents of business ideas and strategies. Up to 50% subsidy can be availed for patent registration.
The government assists them in marketability by allowing them to participate in international and domestic trade fairs and e-trade fairs.
Udyam Registration Process
The complete process for registration is given below:
Update your ITR and GST data on the government portal.
One of our Udyam Expert will process your application.
We provide the best service providers through our Udyam Registration website, you just have to enter your Aadhar number with your contact details. Our Udyam expert will carry out the complete process of registration and will contact you for delivering your Udyam registration number and certificate. Your certificate and number will be sent to you at your registered email address
For any further discussions, visit Udyam Registration experts who will provide you with the best results.
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