29 Jan 2021, 17:08 — 6 min read
The MSME sector is an important pillar of the Indian economy as it contributes greatly to the growth of the Indian economy with a vast network of around 6.3 crores MSMEs, creating employment of about 11 crores, manufacturing more than 6000 products, contributing about 45% to manufacturing output, and about 40% of exports, directly and indirectly. There was a long pending demand from the sector to redefine the MSME definition. The Government of India has redefined MSME classification from 1 July 2020 as follows:
A composite criterion of investment in Plant & Machinery or Equipment and Turnover, as detailed in the matrix above, shall apply for classification of an enterprise as micro, small or medium.
The criteria are applicable to enterprises for both manufacturing and services sectors.
If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or 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 Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as a micro, small or medium enterprise.
The Government has organised a system to facilitate the registration of MSMEs. An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration’. A permanent registration number will be given after registration.
After completion of the process of registration, a certificate will be issued online. This certificate will have a dynamic QR Code from which the web page on the Portal and details about the enterprise can be accessed. There will be no need for renewal of registration. Registration Process is totally free of cost.
Single window systems at Champions Control Rooms and at DICs will help in the process.
Any person who intends to establish a micro, small or medium enterprise may file Udayam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates, or proof.
Also read: New definition of MSMEs & Udyam registration
Web address for Udyam Registration
If you are an MSME in India, you may register on this link -- https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
This new online system of MSME/Udyam Registration is a totally seamless process and stands the test of time and technology. More than 11 lakh MSMEs have already registered since its launch on 1 July 2020. It is strongly advised that new registrations must be done before 31 March 2021. A word of caution— MSMEs should register only on the Udyam Registration government portal and be careful of fake sites.
There are numerous benefits of Udyam registration and getting a Udyam certificate for your business. Listed here are some of the top benefits.
To explore business opportunities, link with me by clicking on the 'Connect' button on my eBiz Card.
Source: eBook of Schemes for MSMEs & Annual Report MSME 2020 - 2021
Image source: freepik.com
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker
Posted byVatsala Mishra
I look after activities relating to MSME, Retail and Design Sectors in the Industries Department. Currently working on various initiatives for supporting growth of MSMEs such as...
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