The Central government in July, last year, had launched a zero-cost MSME registration portal by the name – ‘Udyam Registration.’ According to the MSME ministry’s data, the portal has registered 31.56 lakh entities as of June 2, 2021. As per the latest survey on India’s MSME population, conducted by National Sample Survey during FY16 was the National Sample Survey (NSS) 73rd round. The survey reveals that there were 6.33 crore unincorporated non-agricultural MSMEs. In these 6.30 crore were micro firms, 5,000 were mid-sized businesses, and 3.31 lakh were small enterprises.
What is Udyam Registration?
Earlier MSME registrations were done under Udyog Aadhar Memorandum (UAM) on the e-filing system. The UAM has now been replaced by Udyam Registration. This new portal will assist the government in aggregating the data on the number of MSMEs in the country. In addition to it, the government will get data based on product category, size of the MSME, and its investment and turnover. The government will also learn the geographical density of MSMEs based on state, city, and district.
How to register a new enterprise?
The new portal is a free-of-cost and a self-declaration paperless platform for entrepreneurs to get their enterprises registered. Entrepreneurs are not required to provide any documents except the Aadhaar number of the registration. Udyam Registration portal is integrated with Income Tax and GSTIN system therefore it will automatically pull PAN and GST-linked details on investment in the business. Post-registration, all MSMEs are given a certificate along with a permanent registration number. The QR code on the certificate will accumulate all details about the MSME.
What will existing businesses do?
Existing businesses that have EM-II or UAM registration will have to re-register themselves. However, last year the Reserve Bank of India (RBI) had clarified that existing EMs part II and/or UAMs of MSMEs which were obtained before June 30, 2020, will remain valid till March 31, 2021, as they had to register before March under Udyam Registration after July 1, 2020. Notedly, renewal of new registration will not be required.