Udyam registration

Udyam Registration in india.

A micro, small and medium enterprise will now be known as udyam as per the notification issued by the ministry of micro, small and medium enterprise on 26th of june, 2020. The ministry has also come up with detailed criteria for the classification of micro, small and medium enterprise and the procedure for registration, and the arrangement made by the ministry for facilitation in this process. The announcement stated that exports of goods and services, as well as both, are excluded from the calculation of a company turnover, whether it is a micro, small, and medium sized enterprise. The registration process would be known as udyam registration, according to the document. The micro, small and medium enterprise ministry notified that udyam registration can be filed there is no need to upload any documents and papers and certificate and proof because the system is based on self declaration. To register a business, all you need is an aadhaar number. From 1st of july, 2020, the new online registration will be available.

Suggested read udyog aadhaar print download

Enterprise classification.

An enterprise shall be classified as a micro, small and medium enterprise on the basis of the following criteria, namely

a micro enterprise with an investment in plant, machinery and equipment of less than one crore rupees and a turnover of less than five crore rupees.

A small business with an investment in plant, machinery and equipment of less than ten crore rupees and a turnover of less than fifty crore rupees.

A medium sized enterprise in which capital expenditure on plant, machinery, and equipment do not exceed the company net worth is not more than rupees 50 crore and its annual turnover is not more than rupees 250 crore.

Developing a micro, small and major enterprise.

Anyone who wants to start a micro, small, or medium enterprise can register for udyam online in the udyam registration portal, based on self declaration with no requirement to upload the document, paper, certificate and proof.

An enterprise will be issued a permanent identifying number, known as the udyam registration number when it registers for udyog aadhaar certificate print.

After the registration process is completed, an e certificate called udyam registration certificate will be issued.

To categorise the enterprise, we used a combination of investment and turnover factors.

A composite criterion of investment and turnover shall apply for the classification of an enterprise as a micro, small and medium enterprise.

If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment and turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

All units with good and service tax identification number listed against the same permanent account number shall be collectively all of these entities will be classified as one business, and their revenue and investment data will be compared and only the aggregate value will be considered for deciding the category as micro, small and medium enterprise.

Investment in plant and machinery and equipment is calculated.

Firstly the calculation of investment in plant and machinery and equipment will be linked to the income tax return of the previous years filed under the income tax act 1961.

Secondly in case of a new enterprise, where no prior income tax return is available, the investment will be based on self declaration of the promoter of the enterprise and such relaxation shall end after the 31st of march of the financial year in which it files its first income tax return and print udyog aadhaar certificate.

Thirdly the expression plant and machinery and equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the income tax rules 1962 framed under the income tax act 1961 and shall include all tangible assets.

Fourthly the purchase value of a plant and machinery and equipment, whether purchased first hand and second hand, shall be taken into account excluding goods and service tax, on self disclosure basis, if the enterprise is a new one without any income tax return.

Fifthly the cost of certain items specified in the explanation one to subsection one of section seven of the act will not be taken into account when determining the amount of investment in plant and machinery.

Turnover calculation.

Exports of goods and service and both shall be excluded while calculating the turnover of any enterprise whether micro, small and medium, for the purpose of classification.

Information about an enterprise turnover and export turnover must be linked to its income tax return act and the central goods and service act and the goods services tax identification number.

The turnover related figure of such enterprise which do not have a permanent account number will be considered on self declaration basis for a period up to 31st of march, 2021, and thereafter, permanent account number and goods services tax identification number shall be mandatory.

Registration process.

Firstly the form for registration shall be as provided in the udyam registration portal.

Secondly, there will be no fee for filing udyam registration.

Thirdly the aadhaar number shall be required for udyam registration.

Fourthly the aadhaar number shall 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.

Fifthly in case of a company and a limited liability partnership and a cooperative society and society and trust, the organization and its authorised signatory shall provide its goods service tax identification number and permanent account number along with its aadhaar number.

Sixthly in case an enterprise is duly registered as an udyam with a permanent account number, any deficiency of information for previous years when it did not have permanent account number shall be filled up on self declaration basis.

Seventhly no enterprise shall file more than one udyam registration. Provided that any number of activities including manufacturing and service and both may be specified and added in one udyam registration.

Eightly whoever intentionally misrepresent and attempt to suppress the self declared facts and figures appearing in the udyam registration and update process shall be liable to such penalty as specified under section 27 of the act.

Registration of existing enterprise.

Firstly all existing enterprise registered under entrepreneur memorandum part two and udyog aadhaar memorandum shall register again on the udyam registration portal on and after the 1st of july, 2020.

Secondly, all enterprise registered till the 30th of june, 2020, shall be re classified in accordance with this notification.

Thirdly the existing enterprise registered prior to the 30th of june, 2020, shall continue to be valid only for a period up to the 31st of march, 2021.

Fourthly an enterprise registered with any other organisation under the ministry of micro, small and medium enterprise shall register itself under udyam registration.