UDYAM (MSME) REGISTRATION PROCESS : Step-wise and Other important related information

UDYAM (MSME) REGISTRATION PROCESS: Step-wise and Other important related information


              1. Introduction and Salient features of registration process
              2. New Registration Process: Point-wise information required
              3. Registration of existing registered enterprises
              4. Udyam Registration Certificate
              5. Updation of information
              6. Change in Classification
              7. Penalty for false information

Section 8(1) of the Act cast responsibility on MSME units to file memorandum (registration) with the notified Authorities. Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
GOI has specified certain criteria for classifying the enterprises as micro, small and medium enterprises and also the form and procedure for filing the memorandum known as – “Udyam Registration”. The District Industries Centre (DICs) will also act as Single Window facilitation Systems in their Districts. To understand definition of MSME, eligibility to register and practical issues, Click Here.

  • MSME registration process is fully online, paperless and based on self-declaration.
  • No documents or proof are required to be uploaded for registering an MSME.
  • Only Adhaar Number will be enough for registration.
  • PAN & GST linked details on investment and turnover of enterprises will be taken automatically from Government data bases.
  • Having PAN & GST number is mandatory from 01.04.2021.
  • Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.
  • No enterprise shall file more than one Udyam Registration. However, any number of activities including manufacturing or service or both may be specified or added in one Registration.
  • There will be no need for renewal of Registration.

You may watch Video of Step by Step process of obtaining registration with screen shots and information checklist at https://youtu.be/mElglEGB3kE
Visit Website : https://udyamregistration.gov.in/      
1. Aadhar Verification (Sr. no. 1)
         a. Aadhaar number shall be required for Udyam Registration:

Enterprises Aadhaar Number shall be of
Proprietorship Firm Proprietor
Partnership Firm Managing Partner of Firm
Hindu Undivided Family (HUD) Karta of HUF
Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, Organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.

b. Name of entrepreneur
c. OTP verification
2.  PAN Verification (Sr. no. 2 to 4)
i.   Type of organization

  1. Proprietary
  2. Hindu Undivided Family
  3. Partnership
  4. Co-operative
  5. Private Limited Company
  6. Public Limited Company
  7. Self Help Group
  8. Limited Liability Partnership
  9. Society
  10. Trust
  11. Others

ii.  Filing of ITR for F.Y. 2018-19
iii. Which ITR form 3,5,6 or 4
iv.  Do you have GST Number?
In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis
3.  Entrepreneur (Sr. no. 5 to 10) :

    1. Name as per PAN
    2. Mobile number
    3. Email
    4. Social Category, Gender, Physically handicapped

4.  Enterprise (Sr. no. 13 to 16):

    1. Office address
    2. Previous E2/UAM
    3. Date of incorporation
    4. Whether production/business commenced
    5. Bank details: Bank name, IFSC, Account number

5.  Activities (Sr. no. 17,18):

  1. Major (Manuf/Service)
  2. NIC code (Multiple Activities can be added)

i.   NIC 2 Digit Code

ii.   NIC 4 Digit Code

iii.      NIC 5 Digit Code

6. No. of persons employed (Sr. no. 19)
7. Investment in plant & machinery and Turnover (Sr. no. 20,21): directly extracted from Income Tax Return
8. Registration with Government e-Market or TReDS Portal (Sr. no. 22)
9.Name of enterprise, Location of plants : directly from GSTIN (Sr. no. 23)

  • All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
  • All enterprises registered till 30th June, 2020, shall be reclassified in accordance with this notification.
  • The existing enterprises registered prior to 30th June,2020, shall continue to be valid only for a period up to the 31stday of March, 2021.
  • An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration

On registration, an enterprise (referred to as – “Udyam in the Udyam Registration portal will be assigned a permanent identity number to be known as – Udyam Registration Number”.   An e-certificate, namely, ― Udyam Registration Certificate shall be issued on completion of the registration. One Enterprises shall have one Udyam Registration.
All activities including manufacturing or service or both shall be specified or added in one Udyam Registration. This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.

  • An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self declaration basis.
  • Failure to update the relevant information within the period specified in the online Udyam Registration portal will render the enterprise liable for suspension of its status.

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.
In case of graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise, a communication will be sent to the enterprise about the change in the status.

  • In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent reclassification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration.
  • In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.

If any person intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updating process shall be liable penalty of Rs 1,000/- can be levied at first time. This penalty can be increased up to Rs 10,000/- on subsequent contravention.

Chintan Patel is CA, CPA(USA), CISA(USA), DISA, DIRM(ICAI) and certified Ind AS and FAFD by ICAI. He is Regional Council Member of WIRC of ICAI. He is partner of Naresh J. Patel & Co. having more than 18 years of post-qualification experience in Ind AS, IFRS, Companies Act, GST. He is an author of books Quick Guide to Ind AS, ICDS published by Taxmann and Speaker at more than 500 presentations.