To provide some relief to Micro, Small and Medium Enterprises, (MSMEs) struggling from Covid-caused disruption to business, the Ministry of Micro, Small and Medium Enterprises has extended the validity of the Udyog Aadhar Memorandum till December 31, 2021.
Enterprises can register themselves on https://udyamregistration.gov.in to generate a Udyam Registration Number for free. The registration requires only Aadhar and PAN.
The enterprises, which were registered under EM–Part-II or UAM before June 30, 2020, need to register again according to the new MSME classification rules that were released by the ministry on June 26, 2020. The last date for the registration for Udyog Aadhar, which was originally set till March 31, 2021, has been extended till the end of this year. The ministry said that it has received communication from many MSME associations for the extension.
“Considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions and Government departments dealing with the interest of MSME Sector, the said amendment has been carried out,” the ministry said in a statement.
Recommended For You
The move will help enterprises, which could not register before March 31, avail schemes being run for MSMEs by the government. Such enterprises, whose prior registration was deemed invalid because of the delay in migration to the new system, can get access to all the incentives including Priority Sector Lending schemes as well, as their validity has been continued.
The new registration system, which was notified on June 26, 2020, and launched on July 1, 2020, seeks to reduce the cumbersome amount of paperwork that scares many enterprises from getting registered and availing schemes run by the government. Under the new system, anyone who wants to “establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal,” according to the official notification. The registration process is kept free from any requirement to upload documents and is based on self-declaration. However, anyone who registers has to agree that the government can demand documents for the claims made wherever it wishes.