MSME Registration

What are Micro, Small and Medium Enterprise?

The existing MSME classification was based on the standards of investment in plant and equipment or machines. So, to enjoy the MSME advantages, the MSMEs must limit their investment to some lower limit, as mentioned below:

These lower limits are murdering the urge to grow as they are not able to scale their businesses further. Additionally, there has been a long-pending demand for its revision of MSME classification so that they can further expand their operations while continuing to avail the MSME advantages.

Presently, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification* by adding composite standards of investment and annual turnover. Additionally, the differentiation between the manufacturing and the services sectors under the MSME definition was taken away. This elimination will create parity between the sectors. The following is the revised MSME classification*, where the investment and yearly turnover, both are to be considered for deciding an MSME.

* Further upward revision made by the government

MSME Registration Process

MSME registration is to be completed from the government portal site of udyamregistration.gov.in. New entrepreneurs will need to click the button”For New Entrepreneurs who are not Registered yet as MSME” displayed on the home page for registering MSME. New registration of MSME is carried out by inputting the Aadhaar card number without PAN Card.

1. Registration With PAN Card:

When clicked on the”For New entrepreneurs who are not Registered yet as MSME” button on the site of the government portal, it opens the page for enrollment and asks to enter the Aadhaar number along with the name of the entrepreneur. After entering the details,”Validate and Generate OTP Button” is to be clicked. After, this button has been clicked and OTP is received and entered, the PAN Verification page opens. If the entrepreneur has a PAN Card, the portal site gets the PAN details from the government databases and automatically fills details on the page. The ITR details are to be filled from the entrepreneur.

After PAN details are entered, a message appears as”Udyam Registration has been done through this PAN” and also the entrepreneur needs to click the”Validate PAN” button.

After confirmation of PAN, the Udyam Registration box will appear and the entrepreneurs will need to meet with the personal particulars and particulars of the plant or business.

Once the details are filled, the”Publish and Get Final OTP” button has been clicked, the MSME is registered along with a message of successful registration with reference number will appear. Following verification of enrollment, which might take a couple of days that the Udyam Registration Certificate is issued.

2. Registration Without PAN Card:

The button”For New entrepreneurs that are not Registered however as MSME” is to be clicked on the site of this government portal. It opens the page for registration and asks to input the Aadhaar number along with the title of the entrepreneur. After entering these details,”Validate and Create OTP Button” is to be clicked. Once, this button is clicked and OTP is obtained and entered, the PAN Verification page opens. If the entrepreneur does not have a PAN Card, the”No” option under the heading”Do you have PAN?” is to be clicked and then the “Next” button.

Following the”Next” button is clicked, the Udyam Registration page opens where the entrepreneur should enter his personal particulars and plant or business particulars.

After the details are all satisfied,”Final Submit” is clicked and a thank you message will appear with the registration number. After obtaining the PAN and GSTIN, it ought to be upgraded on the portal site within 01/04/2021 to avoid suspension of Udyam Registration.

3. Registration For Entrepreneurs Already Having EM-II Or UAM:

For those already having enrollment as EM-II or UAM, they will need to click on the button”For those having enrollment as EM-II or UAM” shown on the home page of the government portalsite. This will open a webpage where Udyog Aadhaar Number is to be entered and an OTP alternative should be chosen. The options provided are to attain OTP on cellular as full of UAM or get OTP on email as filled UAM. After choosing the OTP Options,”Validate and Generate OTP” would be to be clicked. After inputting OTP, registration particulars are to be full and udyam registration will be complete.