The Ministry of Micro, Small, and Medium Enterprises (MSME) has announced the further extension of the validity of UAM or Udyog Aadhaar Memorandum registration till March 31, 2022, for businesses under the MSME category. These businesses can now continue to function under the existing registration till the end of March. With the extension of the UAM registration, the MSMEs can continue to avail the benefits of the provisions under various government schemes such as priority sector lending.
Now, MSMEs under the UAM system get another 3-month extension to switch to the new Udyam registration portal launched on July 1, 2020. Previously, the Entrepreneur Memorandum – II and/or UAM registrations acquired before June 30, 2020, were valid till March 31, 2021. This date was further extended to the end of 2021.
What is Udyam Registration?
Udyam Registration or MSME Registration is the new government registration process for micro, small and medium businesses which provides the MSMEs with a permanent registration number launched in July, 2020. Udyam Registration is the replacement of the old process of UAM or Udyog Aadhaar Memorandum Registration.
A certificate is issued online after the completion of the registration process. This certificate will have a dynamic QR code from which the details of the business and the portal webpage can be accessed. As per MSME Development Act 2006, Udyam Registration is advised for micro and small enterprises who wish to avail the benefits of government schemes offered to MSMEs. However, for medium-scale enterprises, Udyam Registration is mandatory.
Udyam or MSME Registration is paperless, free of cost and does not need any online or offline agency. There is only a single government portal for Udyam Registration - https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
Udyam Registration does not require renewal. This system will be fully integrated with Income Tax and GSTIN Systems. Having PAN and GSTIN will be mandatory for registration from April 1, 2021. Only one registration per enterprise is allowed.
Are Udyog Aadhaar (UAM) and Udyam Registration different?
Udyam Registration Portal was launched as a replacement to EM-II and UAM after the revision of the definition of MSMEs by the government. MSMEs now have a window till March 2022 to transfer to Udyam Portal.
Since 2020, Udyog Aadhaar has moved to the Udyam Portal registration. Any MSME which was previously registered as EM-II or UAM registration or any registration issued by any authority under the MSME Ministry will have to re-register under Udyam Registration.
Why is Udyam Registration required?
The main objective for Udyam Registration was to simplify the registration process for MSMEs and reduce the time taken for registration. Udyam Registration is beneficial for MSMEs to help them avail of several incentives and schemes offered by the government which also include priority sector lending.
Any business functioning as a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal. It is based on self-declaration without any need to upload documents, papers, certificates, or proof. Only the Aadhaar Number is required for registration.
Benefits of registration on Udyam Portal
There are many benefits of registering on the Udyam portal for MSME such as -
- Waiver on stamp duty and registration charges
- no renewal of registration required
- multiple activities including manufacturing or service can be added to one registration
- Interest rate subsidy on bank loans
- Concession in electricity bills
- Obtaining licenses, registrations and approvals becomes easy
- Subsidy on patent fees and trademark registration
- Exemption under direct tax laws
- MSMEs can register themselves on the Government e-Marketplace (GeM), and also on the TReDS platform, Credit Guarantee Scheme, Public Procurement Policy, etc.
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