Udyam Registration - Definition Of Udyog Aadhar Registration Revived
According to the 26 June 2020 notification released by the government 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 redeem their registration 1st July 2020 onwards. The enterprises that were registered before 30th June 2020 should be reassessed as per the government’s new definition of MSME and the enterprises that have registered under UAM after 30th June will be valid till 31 June 2020.
Classification Of Enterprises With The Composite Criteria Of Investment And Turnover
According to the imposed new definitions:
An enterprise that has an investment of less than 1 crore rupees in plant and machinery, equipment in service sectors, and turnover not exceeding 5 crore rupees is entitled as a micro-enterprise.
A small enterprise 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 by definition 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.
Application Of The Definitions For The Existing Enterprises
With the reconstruction of the MSME, the composite criteria of turnover and investment would decide the category of a present enterprise that was defined by the previous criteria of investment. If a registered enterprise exceeds the ceiling investment and turnover price of its present criteria it will be considered in the higher category and similarly, if an enterprise exceeds the bottom line referred to in the new definition it would be categorized in the lower category.
Udyam Registration Due Date (Important Note)
The enterprises registered before 30th June 2020 will not be valid if they are not registered under the Udyam memorandum. The enterprises that were registered after 30th June will be valid until 31st June of next year.
Investment And Turnover Criteria Explanation
The government has defined the process of calculation of investment, inclusion, and exclusion of certain budgets
Self-declaration of the promoter will be taken into consideration up until 31st June of next year in case the company can’t provide any ITR and their first ITR should be filed before 31st June of next year for being validated.
As mentioned in the Income Tax Act, 1962 the investment in plant and machinery or equipment should consider all the costs of tangible assets excluding the land, building, furniture, and fittings.
The GST of the buying cost of the building for a new enterprise should be included on the basis of self-declaration if they do not have their ITR.
While calculating turnover the export turnover should be excluded while registering. The turnover and export turnover will be assessed by the Income Tax Act or the CGST Act and the GSTIN.
All the GST Identification numbers that are registered under one PAN number should be considered as one entity while calculating investment and turnover.
In all cases of not providing PAN or ITR self-declaration will be considered regarding GST and taxes until next 31st June
What Is Udyog Aadhar?
Udyog Aadhar is a simple procedure that was introduced by the government in 2015 after revoking the entrepreneur’s memorandum to simplify the registration process for MSMEs by giving them the Udyog Aadhar registration and a unique 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 published the notification for the registration process by availing Udyam number for redressal.
What Is Udyam Registration?
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 enterprises for classification and availing the services, subsidies, and schemes provided by the government for MSMEs.
Hence, Udyog Registration and Udyam registration are not the same but they are both registration processes for the MSMEs. Udyog Aadhar registration will not be provided anymore. Udyam registration will now provide a number to the enterprises upon providing the concerned authority’s Aadhar number and within the given time after the Udyam registration, the enterprise has to update their information status of GST and ITR in the government portal, otherwise, its status will be rendered as suspended.
In case of a change in the status 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 upgrading the status, the enterprise will maintain its status until the expiry 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:
The registered enterprises will be getting collateral-free or guarantee-free loans of up to 100 lakh.
MSMEs have a significantly low rate of interest, approximately 1 to 1.5%, which makes it easier for them to avail of bank loans.
Easier approval of bank loans and subsidies are given to registered businesses.
Registered entities become eligible for credit-linked capacity subsidy schemes by applying through primary lending institutions.
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.
Full or partial reservation on more than 700 products to increase the marketability and development rate of MSMEs.
Special protection against buyers is provided by the government for delayed payment according to the contract or after 45 days after service or delivery.
On excise taxes and direct taxes, concession and subsidies are provided depending on the amount of ITR.
Serious concession for electricity bills is given upon applying.
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.
Under the ISO reimbursement scheme, financial support is provided on acquiring ISO 9000, 14001, and HACCP certification to strengthen competitiveness and growth.
NSIC provides loans and schemes to financially support emerging enterprises.
Subsidies are also given on registering the barcode for the company.
The government assists them in marketability by allowing them to participate in international and domestic trade fairs and e-trade fairs.
Following all the updation processes of information is extremely necessary for availing the statement. The Udyam registration online is basically a simple process for availing a unique number for the identification of enterprises that are registering under MSME. The whole process is extremely simple.
The complete process for registration is given below:
Update your ITR and GST information on the government portal.
Udyam Registration works as a search engine for all of your registration needs. You can find the best service providers through our website and you just have to provide your Aadhar number with your contact details. Our experts 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 mailed to you.
Expert Consultants: Our executives and consultants are experts in the field and have served clients for years while consulting them for their eligibility. Our consultants have been trained and qualified with expertise. They have consulted thousands of clients over the years and if you are having doubts or facing any trouble with the registration or verification process they can be readily contacted. Our executives are always available for ensuring that you understand all the guidelines, and verify if you have provided all the accurate information and correct documents. You can rely on us for the smoothest application process for your business.
Client Satisfaction:We have served thousands of clients and always have valued their feedback. Our service has always got positive and thankful feedback. We are always thankful to our clients for creating such a huge client base for our company which has given us the strength to continue to serve you. We have always prioritized the satisfaction of our clients and we feel like it is our earnest duty to help you with the smooth processing of your registration.
Customer Trust: Our job is that of being an intermediary and connecting you with the best service providers for the registration of your business at minimal pricing. With support and service, we have created an impact and built the customers’ trust which has been extremely important for our growth.
Easy Registration Process
The registration process through Udyam Registration website is simple. You have to first visit the website. Once you are there, when you run a search for Udyam registration online you will be provided with an array of providers for you to choose from. Click on a link and you will be redirected to the provider’s page. You just have to enter the Aadhar number and contact details there and you are done.