Udyog Aadhaar is a type of identity card for Micro, Small and Medium Enterprises. It is only a...
The Ministry of MSME on 26th June 2020 specified a new form and procedure of filing the memorandum known as the Udyam Registration, and it shall be in effect from 1st July 2020. The Central Government made this decision after receiving the recommendations from the Advisory Committee.
The enterprise will be classified as micro, small, or medium enterprise according to the following criteria:
Where an enterprise crosses the ceiling limits mentioned in its present category in either of the two criteria of investment or turnover, it shall no more be in that category and shall be placed in the next higher category. It may be noted that no enterprise will be placed in the lower category except if it goes below the ceiling limits mentioned for its present category in both criteria.
The process for establishing a Micro, Small, and Medium Enterprise is as follows:
Our Recommendation: An Insight into Unsecured Loan market in India
In case where any person is unable to file the registration for any reason including the reason for lack of adhaar number can approach any of the Single Window Systems for registration purpose under Udyam with his or her Adhaar enrolment identity slip or adhaar enrolment request copy or bank photo passbook or voter identity card or passport or DL (Driving License) and the Single Window Systems shall facilitate the process including receiving an adhaar number.
Where any discrepancy or complaint is reported, the General Manager of the district industries centre of the concerned district will undertake the inquiry for verifying the details of the registration submitted by the enterprise and will forward the matter with remarks to the Director or Commissioner or Industry Secretary of the State Government.
The concerned shall issue a notice to the enterprise and provide an opportunity to it to present its side, and based on the findings, it shall amend the necessary details or may recommend to the ministry of Micro, Small, and Medium Enterprise to cancel the registration certificate.
All existing registered enterprises under EM part II or UAM (Udhyog Adhaar Memorandum) shall register again on the registration portal of Udyam on or after 1st July 2020. All enterprises registered till 30th June 2020 will be reclassified as per this notification. The existing enterprises registered before 30th June 2020 will continue to be valid only till 31st March 2021.
An enterprise having URN shall update its information online in the Udyam registration portal, including the details of the income tax return and GST return of the previous financial year and any other additional information, on a self-declaration basis. In the case where the updation of information is not made in the predefined time period, the enterprise shall be liable for suspension of its status.
Based on the furnished information or gathered from governmental sources, including Income tax return or GST return, the classification of the enterprise shall be updated.
A communication shall be made to the enterprise about the change in status, in case of graduation from lower to a higher category or reverse graduation from higher to lower category of an enterprise.
In case where a person intentionally misrepresents or attempts to suppress the self-declared facts and figures displayed in the registration or updation process will be punished with the following: