MSME Updates

MSME Ministry has come out with a consolidated notification in the form of guidelines for classification and registration of MSMEs. Highlights of the new guidelines are as below:

1. The Guidelines are effective from the 1st day of July, 2020.

2. New Classification:

     a. Micro - Investment Up to 1 Crore & Turnover Up to 5 Crores

     b. Small - Investment Up to 10 Crores & Turnover Up to 50 Crores

     c. Medium - Investment Up to 50 Crores & Turnover Up to 250 Crores

3. Now Trading entity can also register under MSME.

4. Now the MSME Registration shall be called file Udyam Registration and can be done online in the Udyam Registration portal.

5. Exports of goods or services or both, shall be excluded while calculating the turnover.

6. All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal. 

7. The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31stday of March, 2021.

Link Below:

https://msme.gov.in/sites/default/files/IndianGazzate_0.pdf

Registration  process.— (1)       The  form  for  registration  shall  be as provided in  the Udyam  Registration portal. (2)       (3)    (4)        (5)      (6)     (7)    (8)     7.         There will  be no  fee  for  filing  Udyam  Registration.   Aadhaar  number  shall  be required  for  Udyam  Registration. The  Aadhaar  number  shall  be  of  the  proprietor  in  the  case  of  a  proprietorship  firm,  of  the managing  partner  in  the  case  of  a  partnership  firm  and  of  a  karta  in  the  case  of  a  Hindu Undivided Family  (HUF). In  case  of  a  Company  or  a  Limited  Liability  Partnership  or  a  Cooperative  Society  or  a Society  or  a  Trust,  the  organisation  or  its  authorised  signatory  shall  provide  its  GSTIN  and PAN along  with  its Aadhaar  number.   In  case  an  enterprise  is  duly  registered  as  an  Udyam  with  PAN,  any  deficiency  of  information for  previous  years when it  did not  have  PAN  shall  be  filled up  on self-declaration  basis.     No enterprise  shall  file more than one Udyam  Registration:   Provided  that  any  number  of  activities  including  manufacturing  or  service  or  both  may  be specified or  added  in one Udyam  Registration. Whoever  intentionally  misrepresents  or  attempts  to  suppress  the  self-declared  facts  and figures  appearing  in  the  Udyam  Registration  or  updation  process  shall  be  liable  to  such penalty  as  specified  under  section 27  of  the Act.