With the pandemic onslaught the micro, small and medium enterprise sector has reached the point of exhaustion. The scenario is bleak as there does not appear to be any prospect for small firm to revive following the second wave without government intervention. The government is taking a number of measure in this direction one of which is the udyam registration for recognition.
What is the purpose of the udyam registration?
Udyam is a website that allow small enterprise to register. The ministry of micro, small and medium enterprise registration portal is in charge of it. It is a website where enterprise can register and be recognised by the government. Registration will make it easier to get information about the company. It would also aid in the speedy integration of other government initiative as well as rule and compliance requirement such as income tax and goods and service tax.
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Why is it vital for micro, small and medium enterprise to register with udyam?
The importance of udyam registration for small, medium enterprise is based on the following factors.
Your company can get business tender by registering on udyam.
Your company can get bank loan and credit at 1.5 per cent lower interest rate than ordinary bank loan.
After registering with udyam you can take advantage of a number of tax break and exemption.
Expedited licence approval as well as certification and government registration will assist small enterprise in a variety of industry. Unregistered enterprise will be given priority over udyam registered enterprise.
Other advantage include tax as well as tariff and capital subsidy as well as lower patent expense.
Small business eligibility criteria and application process.
Criteria for eligibility.
Udyam registration is primarily available to enterprise in the manufacturing and service sector. Wholesale and retail trader were previously ineligible for udyam. Wholesaler and retailer however are now able to apply after their recent inclusion in the micro, small and medium enterprise classification.
Procedure for submitting an application.
Here are some important tips for enterprise on the application procedure.
Regardless of whether a company engage in two and more activity each company must register on udyam separately.
Aadhaar is a unique identification number.
If the business is a sole proprietorship you must provide the owner aadhaar number.
If the business is a partnership you must supply the managing partner aadhaar number.
If the business is run by a hindu undivided family the karta aadhaar number must be submitted.
The application procedure is simple and enterprise only have to comply once.
Who is included in the definition of a micro,small and medium business?
The following enterprise are covered by udyam registration.
Micro enterprise have an investment of up to rupees 1 crore and a sales of up to rupees 5 crore.
Small enterprise having a capital investment of up to rupees 10 crore and a revenue of up to rupees 50 crore.
Medium sized enterprise having a capital investment of up to rupees 50 crore and a revenue of up to rupees 250 crore.
What is the micro, small and medium enterprise udyam registration process in india?
The udyam registration portal will give the registration form.
The filing of the udyam registration will be free of charge.
The aadhaar number must be provided because it will be required during the micro, small and medium enterprise udyam registration process.
In a proprietorship firm the proprietor must provide his aadhaar number in a partnership firm as well as the controlling partner aadhaar card is necessary and in a hindu undivided family the karta aadhaar card is required.
In the case of a company a cooperative society and a limited liability partnership and a society as well as a trust and the goods service tax identification number and permanent account number as well as its aadhaar number, must be submitted by the organisation or its authorised signatory.
When a company is registered as an udyam with a permanent account number but it has provided information that is inconsistent in earlier years when it did not have a permanent account number it must be filled out on a self declaration basis.
Enterprise are not permitted to file for more than one udyam registration however this is subject to the restriction that any number of operation including service as well as manufacturing may be added and described in a single udyam registration.
Also read udyog aadhaar print.
Anyone who tries to hide the fact and intentionally misrepresent the self declared number and fact in the udyam registration and the updation procedure is subject to the punishment outlined in section 27 of the act.
On and after 1st of july, 2021 all existing and registered firm under entrepreneur memorandum part two and udyog aadhaar memorandum must re register on the udyam registration portal.
All enterprise that are registered until 30th of june, 2021 will be reclassified in accordance with this notice.
Existing enterprise that were registered before the 30th of june, 2020 will be valid until the 31st of december, 2021.
Any business that is registered with the ministry of micro, small and medium enterprise through another organisation can also register under the micro, small and medium enterprise udyam registration.