Following the Atmanirbhar scheme and for facilitating ease of doing business, Union Ministry of Micro, Small and Medium Enterprises (MSME), changes in the definition of MSME and new registration process known as – ‘Udyam Registration’
In that context, a new portal is introduced known as “UDYAM REGISTRATION PORTAL”
The new registration process comes up with various new angles and is very distinctive from the old process.
| KEY POINTS OF DIFFERENCE BETWEEN NEW AND OLD REGISTRATION PROCESS | ||
|---|---|---|
| BASIS OF DIFFERENCE | Udyog Aadhar Memorandum | Udyam Registration |
| Aadhar Number | Earlier we can take multiple registrations while using one Aadhar | Now one Aadhar one Udyam registration One enterprise shall only have on Udyam registration. |
| PAN validation | No PAN validation | Now PAN validation is mandatory and all the enterprises registering with portal must have PAN and GSTIN. |
| Number of employees | Earlier only the number of employees is to be entered. | Now segregation must be given as per Gender. |
| Linkage with Income tax, PAN and GST department | Earlier all figures are to be entered manually on a self-declaration basis. | Now, the Udyam portal is lined up with other departments and all the details should be as per ITR (last year filed) and GST. |
| Composite criteria for the classification of MSMEs | Earlier enterprises were classified into two sectors manufacturing and service sector, and there are separate limits for both the sectors for classification of the same. | Now there are the composite criteria for both the manufacturing and service sector. There is the same limit of Investment and annual turnover for both the sectors for classification. |
| Amounts of investment had been manually entered. | Investment gets auto-filled based on last year’s filed ITR. And in case of the new enterprise, must be filled on a self-declaration basis and this relaxation is available till 31st March after that updation is required, else certificate gets suspended. | |
| Registration Certificate | Udyog Aadhar Memorandum (UAM) is issued instantly at the time of registration only. | After applying an Udyam Registration Number is issued and Udyam Registration Certificate shall be issued only after verification. |
| Classification | Micro | Small | Medium |
|---|---|---|---|
| Manufacturing Enterprises | Investment not more than INR 25 lakhs | Investment not more than INR 5 crores | Investment not more than INR 10 crores |
| Enterprises rendering Services | Investment not more than INR 10 lakhs | Investment not more than INR 2 crores | Investment not more than INR 5 crores |
| Revised MSME Classification (w.e.f. July 1, 2020) Composite Criteria: Investment in Plant and Machinery/Equipment and Annual Turnover |
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| Classification | Micro | Small | Medium |
| Manufacturing Enterprises and Enterprises rendering Services | Investment in P&M/Equipment not more than INR 1 crore and Annual Turnover not more than INR 5 crores | Investment in P&M/Equipment not more than INR 10 crores and Annual Turnover not more than INR 50 crores | Investment in P&M/Equipment not more than INR 50 crores& Annual Turnover not more than INR 250 crores |
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