Udyam Registration: New MSMEs Portal for small businesses

As per the daily news 50 lakh MSMEs in 15 months registered on the new govt’s portal for small, micro and medium businesses.

This is the portal for MSMEs’ Ease of Doing Business. Udyam Registration is a govt platform that allows local Indian entrepreneurs to index their enterprises/ business/ company details using just their Aadhaar number and pan number. 

Furthermore, this government’s platform obtains PAN and GST-related information on corporate investments automatically.

Udyam Registration, a zero-cost MSME registration website, has received over 50 lakh registrations in less than 15 months since its launch on July 1, 2020. 

The first 25 lakh registrations were completed in less than seven months on the most current paperless portal (on March 5, 2021), with the succeeding 25 lakh registrations completed in less than eight months.

According to official data, the total number of registrants as of 31, March 2021 stood at 50,10,062. There were 47 lakh micro-units and 2.7 lakh small businesses, according to the MSME Ministry. The statistic includes new MSME registrations as well as Udyog Aadhaar Memorandum (UAM) holders who switched to the new platform. 

According to the MSME Ministry’s 2020-21 annual report, between September 2015 and June 30, 2020, 1,02,32,451 (1.02 crore) MSME registrations were done using the e-filing system under Udyog Aadhar Memorandum (UAM), which was succeeded by Udyam Registration.

Maharashtra had the most registrations on the platform, with 10.60 lakh units registered, followed by 5.42 lakh registrations from Tamil Nadu, 4.31 lakh from Gujarat, 4.14 lakh from Rajasthan, 3.84 lakh from Uttar Pradesh, and so on. According to the statistics, these places Arunachal Pradesh, Ladakh, Sikkim, Meghalaya, & Lakshadweep had the fewest online udyam registrations from their respective MSMEs – Micro Small Medium Enterprise.

Udyam Registration is a self-declaration online platform that allows Indian entrepreneurs to register their companies with their Aadhaar number alone. 

According to Udyam Registration, because it is connected with the Income Tax and GSTIN systems, the site quickly gathers PAN and GST-linked information on company investment. 

Following registration, MSMEs are given a permanent registration number as well as a certificate. The certificate includes a QR Code that may be used to access corporate information.

“The website will help the government compile data on the number of MSMEs in the country.” Furthermore, the government would get data based on product type, such as clothes, automobiles, electronics, jewellery, cars, and so on, as well as firm size, investment, and turnover. 

In addition, the government would get information on the density of MSMEs by city, state, or district. “Data is a significant thing to harvest, and today it’s all about data,” Vishwa Nath, Managing Director of Nath Bros Exim International and Co-Chairman of the PHD Chamber of Commerce and Industry’s Industry Affairs Committee.

MSMEs that registered for an Entrepreneur Memorandum – II or UAM before June 30, 2020, and were formerly valid through March 31, 2021, have been granted an extension to move to the Udyam portal before the end of the year.

Despite the fact that MSMEs were expected to register on the Udyam Registration site by March of this year, the Reserve Bank of India (RBI) declared last year that current EMs II and/or UAMs acquired by MSMEs before June 30, 2020, will be valid till March 31, 2021.

The majority of registered MSMEs on the Udyam portal, according to Narayan Rane, the new MSME Minister, are service firms. In August 2021, the minister indicated in the Rajya Sabha that although 36% were in the manufacturing sector, 63.8 percent were in the service sector.

According to the NFRA, financial reporting and auditing standards “shall not impose an undue burden and cost on the regulated organisations,” and the overall regulatory framework should be “proportional to the size and type of the entities” subject to such regulations.

The National Financial Reporting Authority (NFRA), an independent audit regulator, has solicited feedback from stakeholders and the general public on whether micro, small, and medium-sized companies (MSMEs) should be exempted from required statutory audit under the Companies Act of 2013. On Wednesday, the opinions were solicited via a consultation document.

The NFRA stated that financial reporting and auditing rules ‘should not impose an excessive burden and cost on the regulated companies,’ and that the entire regulatory framework should be ‘proportional to the size and nature of the entities’ subject to such regulations. The central government established the NFRA in October 2018.

However, opinions on whether the exemption should be extended to MSMEs differ. “If the exception is granted, that would be a great concept. Only for bank loans is a statutory audit necessary these days. 

However, because bank statements provide all expenditure and other facts, and GST filings provide all sale and purchase records for a firm, the information from the audit isn’t particularly useful. Banks are looking for alternatives to the audited balance sheet to determine a client’s creditworthiness,” Jyoti Prakash Gadia, Managing Director, Resurgent India, told.

Are you planning to register your business on the MSME Udyam portal? Here’s how to do it:

Download Udyam certificate by simply completing out this application form with your complete information about your local company.

Indian local small micro & medium enterprises can register online for free of cost on the Udyam site and receive an e-certificate with a permanent registration number called as Udyam registration Number (URN). For the same, follow these instructions.

The new Udyam site from the Ministry of Micro, Small, and Medium Enterprises (MSME) is a self-declaration and cost-free platform for entrepreneurs to register their businesses. The Udyam site is clubbed with other Government platforms such as the Income Tax and GST IN systems, in future it may integrate other portals as well and it automatically retrieves PAN and GST-related investment information. 

Only the Aadhar no is required for registration, and all MSMEs will be issued a certificate with a permanent registration number. The certificate will include a QR code that may be used to obtain information about the company from the portal.

The MSME Udyam portal registration is a straightforward and one-time process that may be completed solely through the Udyam portal and a single portal connection.

Here’s how to sign up for the MSME Udyam site as a small business:

For MSME registration, proprietorship companies must have the owner’s Aadhaar number. In the case of a partnership business company the controlling partner’s Aadhaar no., must be included while registration.

And in the case of a Hindu Undivided Family (HUF) business, it must be that of a karta.

To register an enterprise on the MSME Udyam site, simply follow these easy steps:

Step 1: Go to the MSME’s official website. You must look for the national icon in the upper center of the webpage and the words MSME ministry next to it.

Step 2: On the site, click ‘New registration’ to receive the registration form. Enter the relevant ‘Aadhaar Number’ and ‘Name of the Entrepreneur’ now.

Step 3: Select ‘Validate and Generate OTP’ and input the PAN verification information.

Step 4: The Udyam registration box will now appear, and you will be prompted to enter all of your information.

Step 5: After completing the registration, you will receive a ‘Thank You’ message with the registration number beginning with ‘UDYAM.’

If your company engages in two activities, just one Udyam registration is required. The same information must be included in the same registration. 

What exactly is the Udyam portal?

The Udyam portal is a free MSME registration website created by the Central Government last year, with 31.56 companies as of June 2, 2021. The Udyam site assists the government in gathering and compiling data on the number of MSMEs in the country. The platform also gives information on MSMEs’ production size, geographical location, investment, and turnover. It has taken the place of the Udyog Aadhar Memorandum (UAM). Any business enterprise who intends to avail MSME department schemes and benefits should register first and then get download & print udyam certificate.

What exactly are MSMEs?

-A microenterprise is defined as a business with an investment of less than Rs 1 crore and a turnover of less than Rs 5 crore.

-A small enterprise is one with an investment of less than Rs 10 crore and a turnover of less than Rs 50 crore.

-A medium firm has an investment of less than Rs 50 crore and a turnover of less than Rs 250 crore.

What keeps a developing country’s economy humming like India’s? Of course, the nation’s micro, small, and medium enterprise (MSME) sector. This industry takes pleasure in being a major contributor to employment, exports, manufacturing, and industrial units in India.

However, not all firms fall under the MSME category since the government has imposed a maximum income requirement. To qualify as an MSME, a company must meet certain criteria.

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