{"id":11996,"date":"2020-07-02T14:26:21","date_gmt":"2020-07-02T08:56:21","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=11996"},"modified":"2024-07-02T17:57:57","modified_gmt":"2024-07-02T12:27:57","slug":"new-enterprise-under-udyam-registration","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/","title":{"rendered":"New Enterprise under Udyam Registration: Aadhaar Number"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nGovernment of India has announced many relief packages after the spread of\npandemic \u2018COVID-19\u2019 for the MSME sector to give a helping hand to industry and\neconomy of the country. Those are helping hands (<strong>Aatam Nirbhar Bharat)<\/strong>,\nwhich include ease of doing business, start-ups, Digital India, secure loans,\nsubsidies, Make in India, a moratorium for loans, simple tax compliances,\nreduced rate of interest &amp; clearness in working.<\/p>\n\n\n\n<p>To allow online <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> of new enterprises based on self-declaration, the Central Government notified new norms-on Friday, which will be applicable from July 1, 2020. It will highlight to keep away the obligation to upload loads of certificates and documents. The requirement of uploading certificates and documents makes it away from the previous regular needs; the norm could be allowed as the Udyam registration process as per officials, which is well-integrated with \u2018GST\u2019 and the \u2018income tax.&#8217;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/#Requirements_and_Obligations_of_the_New_Enterprise\" >Requirements and Obligations of\nthe New Enterprise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/#What_are_the_Classifications_of_MSME_Enterprises_mentioned_as_%E2%80%98Udyam\" >What are the Classifications of\nMSME Enterprises mentioned as \u2018Udyam\u2019?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/#What_is_the_procedure_to_get_Udyam_Registration_Number\" >What is the procedure to get Udyam Registration Number?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/#Channel_for_Udyam_Registration_classification_from_updating_of_information_to_the_transition_period\" >Channel for Udyam&nbsp;Registration&nbsp;classification from updating of information to the transition period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirements_and_Obligations_of_the_New_Enterprise\"><\/span>Requirements and Obligations of\nthe New Enterprise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>PAN &amp; GSTIN:<\/strong>&nbsp;As well, by using PAN and GSTIN details, the details served in can be checked for the enterprise registration. An enterprise can be registered just based on Aadhaar number as per the official statement.<\/li>\n\n\n\n<li><strong>Self-Declaration<\/strong>: Other details can be given on a self-declaration basis, deprived of any prerequisites of uploading or submitting any documents. Therefore, it is known to be a paperless exercise in true insight. MSMEs will be referred to as Udyam, which has also been made a centric emphasis. It is now that the registration process will be called Udyam, which is also means the term \u2018<strong>enterprise<\/strong>.\u2019<\/li>\n\n\n\n<li><strong>ITR &amp; GST Return:<\/strong>&nbsp;\u201cAn enterprise shall update its information having Udyam Registration Number in the Udyam Registration online-portal. It should include the details on the self- declaration basis of the GST Return &amp; <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>ITR filing<\/strong><\/a>, and such other additional information as may be required for the preceding financial year. This information and transition period in respect for updating-has been pronounced by the said notification.<\/li>\n\n\n\n<li><strong>Equipment\u2019s<\/strong>: Investment in plant and machinery or equipment, as well as turnover, is taken into account for classifying an enterprise into an MSME. Similarly, the exports of goods or services shall not be accounted for computing the turnover, whether the enterprise is small, medium, or micro.<\/li>\n\n\n\n<li><strong>Registration Procedure:<\/strong>&nbsp;Through the portal, the process of registration can be done online too. The statement said that it would be made known to the public before July 1, 2020 (the date from which this new planning will be operative). MSMEs will be categorized based on investment and turnover from July 1, 2020, as per the earlier clarification.<\/li>\n\n\n\n<li><strong>Udyam Registration Number<\/strong>: Any enterprise (referred to as \u2015Udyam) in the Udyam Registration portal on registration, will be assigned&nbsp;<strong>Udyam Registration Number (URN)&nbsp;<\/strong>known as<strong>&nbsp;<\/strong>permanent identity number. An e-certificate, namely, Udyam Registration Certificate shall be issued on completion of the registration process.<\/li>\n\n\n\n<li><strong>Verification of the details:<\/strong>&nbsp;The \u2018General Manager of the District Industries Centre\u2019 of the concerned District shall undertake an inquiry for verification in case of any discrepancy or complaint, of the particulars of Udyam Registration submitted by the \u2018enterprise.\u2019 The matter with necessary remarks after that gets forward to the Director or Commissioner or Industry Secretary concerned of the State Government.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>According\nto the notification, this person may amend the details or recommend to the\nMinistry of Micro, Small or Medium Enterprises of Government of India after\nissuing a notice to the enterprise and after giving a chance to present its\ncase based on the findings, for cancellation of the Udyam Registration\nCertificate.<\/p>\n\n\n\n<ul>\n<li><strong>New laws:<\/strong>&nbsp;The Government is also working on several initiatives amid\nthe corona virus-triggered turbulence, such as grounding of huge land pools, to\nappeal potential investors to India, etc. Indian Government has relaxed many\nprovisions MSME law &amp; re-defined accordingly so that many enterprises can\nget benefits obtainable.<\/li>\n<\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong>&nbsp;Government has introduced the concept of&nbsp;\u2018Udyam Registration,\u2019&nbsp;w.e.f. 01\/07\/2020 to those which were earlier deprived off for existing registered under&nbsp;\u2018EM-II\u2019&nbsp;&amp;&nbsp;\u2018Udyog Aadhar Memorandum- UAM\u2019&nbsp;and new MSME enterprises.&nbsp;<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Classifications_of_MSME_Enterprises_mentioned_as_%E2%80%98Udyam\"><\/span>What are the Classifications of\nMSME Enterprises mentioned as \u2018Udyam\u2019?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\ncomposite criterion shall apply for classification of an enterprise as micro,\nsmall, or medium of investment and turnover, i.e., both Turnover &amp;\nInvestment. They are to be considered jointly for enterprise to be enclosed in\none of &#8216;Micro, small or medium.&#8217;<\/p>\n\n\n\n<p>It will\nget cease to exist in that category and be placed in the next higher group if\nan enterprise&nbsp;<strong>crosses<\/strong>&nbsp;<strong>the ceiling limits<\/strong> stated for its\npresent classification in either of the two criteria of investment or turnover.<\/p>\n\n\n\n<p>An enterprise shall be classified as a micro, small or medium enterprise based on (Turnover &amp; Investment in plant and machinery or equipment) the following criteria:-<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Enterprise<\/strong>\n  <\/td><td>\n  <strong>Turnover<\/strong>\n  <\/td><td>\n  <strong>Investment <\/strong>\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  Micro\n  <\/td><td>\n  &nbsp;\n  Not more than 5 Cr\n  <\/td><td>\n  &nbsp;\n  Not more than 1 Cr.\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  Small\n  <\/td><td>\n  &nbsp;\n  Not more than 50 Cr.\n  <\/td><td>\n  &nbsp;\n  Not more than 10 Cr.\n  <\/td><\/tr><tr><td>\n  &nbsp;\n  Medium\n  <\/td><td>\n  &nbsp;\n  Not more than 250 Cr.\n  <\/td><td>\n  &nbsp;\n  Not more than 50 Cr.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>No\nenterprise should be placed in the lower category once registered, until and\nunless it&nbsp;<strong>goes below<\/strong>&nbsp;the\nceiling limits detailed for its present class in both the criteria of turnover\nas well as investment.<\/p>\n\n\n\n<p>All units shall be collectively treated with\u00a0<strong>(GSTIN) Goods and Services Tax Identification Number\u00a0<\/strong>listed against the same\u00a0<strong>(PAN) Permanent Account Numbe<\/strong>r. It is because one enterprise and the investment and turnover facts for all of such entities must be seen composed. It must be noted that only the aggregate values will be considered for deciding the category as \u201cmicro, small or medium enterprise.\u201d<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/can-startups-benefit-from-msme-registration-for-better-govt-support\/\">Can Startups Benefit From MSME Registration For Better Govt Support?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_procedure_to_get_Udyam_Registration_Number\"><\/span>What is the procedure to get Udyam Registration Number?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The form for registration must be as provided in the Udyam Registration portal.<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">New Enterprise Registration<\/h3>\n\n\n\n<p>As per the notification, there will be no fees for the filling of Udyam Registration. <strong>Moreover, Aadhaar number, GST, PAN (Self-declaration)<\/strong>&nbsp;shall be required for Udyam Registration.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"689\" height=\"507\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-9.png\" alt=\"New Enterprise Registration\" class=\"wp-image-12013\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-9.png 689w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-9-300x221.png 300w\" sizes=\"(max-width: 689px) 100vw, 689px\" \/><\/figure><\/div>\n\n\n<p>Not a single enterprise (<strong>Udyam)<\/strong> should file more than <strong>one <\/strong>Udyam Registration; on condition that any number of actions including manufacturing\/service or both may be specified or further in one \u2018Udyam Registration.&#8217; Any person shall be liable to such <strong>penalty<\/strong> as specified under section 27 of the Act, whoever <strong>intentionally misrepresents <\/strong>or attempts to suppress the self-declared facts and figures performing in the Udyam Registration or updating procedure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Existing Enterprises Registration<\/h3>\n\n\n\n<p>All the <strong>existing enterprises<\/strong> registered shall register again on the Udyam Registration portal on or after the 1st day of July, 2020 under EM\u2013Part-II or UAM. Moreover, all enterprises shall be <strong>re-classified<\/strong> in accordance with new notification registered till 30th June 2020. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"539\" height=\"225\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-8.png\" alt=\"Existing Enterprises Registration\" class=\"wp-image-11998\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-8.png 539w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-8-300x125.png 300w\" sizes=\"(max-width: 539px) 100vw, 539px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Channel_for_Udyam_Registration_classification_from_updating_of_information_to_the_transition_period\"><\/span>Channel for Udyam&nbsp;Registration&nbsp;classification from updating of information to the transition period<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>An enterprise shall update its information online in the Udyam Registration portal with Udyam Registration Number comprising the ITR, the GST Return, and other additional information as may be required for the preceding financial year, on self-declaration basis.<\/li>\n\n\n\n<li>It will render the enterprise liable for suspension of its status if failed to update the relevant information within the period stated in the online Udyam Registration portal.<\/li>\n\n\n\n<li>The enterprise classification will be updated based on the information furnished or gathered from Government&#8217;s sources, including ITR or <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST return filing<\/strong><\/a>.<\/li>\n\n\n\n<li>Communication will get sent to the enterprise for change in status in case of&nbsp;<strong>graduation&nbsp;<\/strong>(from lower to higher group), or reverse-graduation (to the lower group).<\/li>\n\n\n\n<li>An enterprise will maintain its prevailing status until the expiry of one year from the close of the registration year. It should comply with&nbsp;<strong>upward change<\/strong>&nbsp;in terms of investment in &#8216;plant and machinery or equipment&#8217; or &#8216;turnover&#8217; or both and consequent re-classification.<\/li>\n\n\n\n<li>The enterprise shall continue in its present category until the financial year&#8217;s closure-in case of&nbsp;<strong>reverse-graduation<\/strong>&nbsp;of an enterprise.<\/li>\n<\/ul>\n\n\n\n<p><strong>The chief concern should be following these two issues:-<\/strong><\/p>\n\n\n\n<ul>\n<li>Whether the enterprise is registered under the Act or not?<\/li>\n\n\n\n<li>Whether it is due to actual changes in investment in plant and machinery or equipment or turnover or both or as a result of re-classification?<\/li>\n<\/ul>\n\n\n\n<p>Moreover, it will benefit the changed status following the year in which such change took place only with effect from &#8216;1st April&#8217; of the financial year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These are just an evaluation &amp; do not constitute advice or a legal opinion. We always inspire our readers to observe the issue in-depth based on the mentioned case laws and amended rules\/decided judicial decisions consequently. With this, our group of <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> has experienced professionals to help you with the process of New Enterprise under with Udyam Registration along with full compliance assistance. Our expert will ensure the successful and favorable completion of your inquiry. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/champions-newly-launched-portal-for-msme\/\">CHAMPIONS: Newly Launched Portal for MSME\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government of India has announced many relief packages after the spread of pandemic \u2018COVID-19\u2019 for the MSME sector to give a helping hand to industry and economy of the country. Those are helping hands (Aatam Nirbhar Bharat), which include ease of doing business, start-ups, Digital India, secure loans, subsidies, Make in India, a moratorium [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":12002,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153,176],"tags":[721],"acf":{"service_id":"71"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":8865,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11996"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=11996"}],"version-history":[{"count":22,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11996\/revisions"}],"predecessor-version":[{"id":65121,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/11996\/revisions\/65121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/12002"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=11996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=11996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=11996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}