The document provides information about the revised registration process for MSMEs in India. Key points include: - The definition of MSMEs was amended in June 2020 to include both investment criteria and annual turnover criteria. - A new online registration portal called "Udyam Registration" has replaced the previous Udyog Aadhaar Number registration system. - The registration process is now completely online and self-declaratory with no fees. Key details from Income Tax and GST returns will be automatically verified. - Once registered, the enterprise is provided an "Udyam Registration Certificate" and classified as Micro, Small or Medium based on investment and turnover criteria.

1. 1
Document name
MSMEs
REGISTRATION
PROCES
Project code
Version Number
Approved by
Approval Date
Creator
Audience Students

2. MSMEs REGISTRATION
PROCESS

3. • Ministry of Micro, Small and Medium
Enterprises on 1st June 2020 via
notification, amended the definition of
MSMEs
• The revised definition provides twin
criteria:
￮ Investment in plant and
machinery or equipment
￮ turnover
• The distinction between
manufacturing and service enterprises
for the purpose of definition has been
done away with
DefinitionofMSMEs- erstwhileand revised

4. Notification dated 26th June 2020
• Both the criteria's linked to Books of Accounts – to get authenticated figures.
• Investment in Plant and Machinery – Source - linked to the Income Tax Return
(ITR) of the previous year filed under the Income Tax Act 1961
• Definition of Plant and Machinery – As per Income Tax Rules, 1962
• No change in exclusion and scope. i.e. Only Plant and Machinery – Tangible
(Other than Land & Building, Furniture, Fittings)
• For new enterprises – for first year figures on self declaration.
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5. Notification dated 26th June 2020
Sales Turnover
• Export turnover – excluded
• Information will be picked from GST return (Central Goods and Services Act -
CGST Act) and the GSTIN.
• New Enterprise or No PAN, No GSTN – Figures on self declaration up to 31st
March 2021, thereafter PAN and GSTN Mandatory.
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6. Registration Processes
• UAM replaced with “Udyam Registration Number”.(UAN)
• All existing UAM or EM I and EM II certificate holder need to register again on
the Udyam Registration portal on or after the 1st day of July, 2020.
• Registration process – self declaration, No processing Fee etc.
• An E-certificate, namely, “Udyam Registration Certificate” shall be issued on
completion of the registration process.
• All enterprises registered till 30th June, 2020, shall be re-classified by system
based information given in Udyam Registration portal
• Cut off date for existing UAM/EM I and EM II – 31st March 2021.
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7. Registration Processes
• 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
• For upward change in classification i.e. form Micro to Small or Small to Medium
– Crossing the limit of Investment or Turnover is sufficient. One is enough
• For reverse change in classification, both the criteria of Investment as well as
turnover is necessary.
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8. Classification and Transition
• After registration, Update Information of ITR and GSTN and other information
on line on Udyam Registration portal.
• Automatic classification into Micro, Small, Medium based on information
updated.
• For change in status due to change in turnover or Investment – communication
by system to enterprise.
• Upward change due to change in Investment or turnover or both, status to
existing status to continue for one year from the date of registration.
• Downward change due to change in Investment or turnover or both, status to
existing status to continue till closure of the financial. Benefit from 1st April of
the financial year from following.
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9. What are the benefits which an MSME
derives post registration?
• MSME enterprises can get finance facility from Banks without collateral
requirements –CGTMSE
Credit Guarantee Fund Trust for Micro and Small Enterprises
• Preference in procuring Government tenders
• Stamp duty and Octroi benefits
• Concession in electricity bills
• Reservation policies to manufacturing/production sector enterprises
• Time-bound resolution of disputes with Buyers through conciliation and
arbitration
• Reimbursement of ISO Certification Expenses
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10. Erstwhile Udyog Aadhar Number (UAN)
Udyog Aadhar
• Introduced on 18th September, 2015
• No fees was required for Udyog Aadhar Registration
• Certificate was generated instantly after registration
• 88% percent registration under this method were done by
Micro Enterprises
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Percentage of Registration Under Udyog
Aadhar from 2015 to December 2019

11. Requirement of registration process-
Udyam Registration Number (URN)
• The Udyog Aadhar lacked verification checks for information provided
• The definition of MSMEs was amended
• The new system integrates information on GST and Income Tax Portal and thus,
the information in GSTR and ITR would be synced and Checked
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12. About Udyam Registration
• A new system for registration has been introduced after the amendment to the
definition of MSMEs
• The registration may be obtained through the online portal ‘Udyam
Registration’
https://udyamregistration.gov.in/
• The registration may be obtained through bare minimum details and a self-
declaration with respect to investment in plant and machinery or equipment
and turnover
• The verification of the information shall be done automatically from
government databases
• PAN and GST shall be required to be provided w.e.f. April 1, 2021
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13. Process of Registration
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Aadhaar shall be mandatory for registration on Udyam Registration Portal. No fees is required
to be paid nor any documents are required.
On completion of registration an e-certificate for registration containing the Permanent Identity
Number shall be generated.
On completion, the enterprise shall submit Income Tax Return/GST Return on the Udyam
Registration Portal.
On the basis of ITR/GSTR uploaded the re-classification within categories of MSMEs may be
done
A Permanent Indentity Number shall be generated
The enterprise shall register itself on the Udyam Registration Portal

14. Process of Registration
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STEP 1- Enter Applicable Aadhar Number and Name

15. Process of Registration
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STEP 2- Enter OTP Received on Your Number/Email Registered with Aadhar and Choose
Type of Organization from Drop Down Menu
Drop Down Menu Shows FollowingOptions
• Proprietory
• HUF
• Partnership
• Co-Operative
• Company
• Self-Help Group
• LLP
• Society
• Trust
• Others

16. Process of Registration
16
STEP 3- Enter PAN of the Organisation
In Case PAN is not Available the Form shall be filled on ‘Self
Declaration’ basis. However providing PAN/GSTIN by 31.03.2021
shall be mandatory otherwise Registration shall be suspended

17. PROCESS OF REGISTRATION
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Details to be filled in the Form
• Mobile No. and E-Mail
• Category
• Gender
• Details of Enterprise (To be entered after GSTR is verified)
• Official Address
• Date of Incorporation & Date of Commencement
• Bank Details (Bank Name, IFSC Code, Account No.)
• NIC Code - National Industrial Classification Code
• No. of Employees (Categorised as Male,Female and Other)
• Turnover (To be entered after ITR is verified)
• Whether Enterprise want to get registered on "GeM" or "TReDs" Portal
STEP 4 – Name of Organisation shall be Autopopulated and then start
filling details in the Udyam Registration form

18. Receivables Exchange of India
Ease of Doing Business for MSMEs:
Business-to-government e-commerce portal
Government e-Marketplace (GeM)
Trade Receivables Discounting System (TReDS)
Platform operator
Receivables Exchange of India Ltd (RXIL)
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19. PROCESS OF REGISTRATION
19
STEP 5 – Complete the Process, A Final OTP will be sent to your Number Enter the Same and a Notification with
Your Udyam Registration No. shall appear

20. Process of Registration
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STEP 6– Registration Process is complete Certificate shall be
generated after verification

21. Procedural Aspects
• For Person having PAN Data for Details of Enterprise, Investment in Plant and
Machinery or Equipment shall be
• filled as per GSTR and Information of turnover as per ITR
• In case person does not have PAN registration shall be on basis of Self-
Declaration, However PAN details shall be updated by 31.04.2021 otherwise
Udyam registration shall be cancelled
• Registration can only be done for service and manufacturing entities and not
for trading enterprises undertaking
• activities under NIC codes mentioned in notification by Ministry of MSME dated
27.06.2017
• Details of Investment in Plant and Machinery or Equipment shall be auto-
populated from ITR & GSTR after verification
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22. Calculation Of Investment in Plant and
Machinery or Equipment
To be Included
• Plant and Machinery or Equipment
shall have same meaning as under
Income Tax Rules, 1962
• All units with GSTIN listed against the
same PAN shall treated as one
enterprise and investment figures
for all of such entities shall be seen
together on aggregate basis
• Will be linked to information under
ITR
• If no ITR is filed, on invoice value
excluding GST
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Not to be Included
• Land,
• Building
• Furniture and Fittings
• Items mentioned in explanation 1 to
section 7(1) of MSMED Act, 2006 i.e.
Cost of pollution control, research
and development, industrial safety
devices and such other items as may
be specified, by notification.

23. Calculation of Annual Turnover
To be Included
• Turnover taken on collective basis
for all units with GSTIN listed against
the same PAN
• The turnover of enterprises which do
not have PAN will be considered on
self-declaration basis for a period up
to 31st March, 2021 and thereafter,
PAN and GSTIN shall be mandatory.
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Not to be Included
• Export of goods or services or both

24. Changes in Classification
Graduation
• Classification of enterprise, changed
from a lower to a higher category
• For example from micro to small.
• Enterprise will maintain its prevailing
status till expiry of one year from
the close of the year of registration
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Reverse-Graduation
• Classification of enterprise, changed
from a higher to a lower category
• The enterprise will continue in its
present category till the closure of
the financial year and it will be given
the benefit of the changed status
only with effect from 1st April of the
financial year following the year in
which change happened.

25. MSME – SAMADHAN – Delayed Payment
Monitoring System
Salient Features
• A Portal created by Office of DC(MSME), Ministry of Micro, Small and Medium
Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their
applications online regarding delayed payments.
• Micro and Small Enterprise Facilitation Council MSEFC) established by the
State/UTs as per the provisions of MSMED-Act 2006.
• No intervention from Ministry of MSME – Independent Body
• UAM is mandatory to file the claim
• Only on line application is not necessary. Physical application can be filed.
• Automatic conversion of application filed on portal in to Case
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26. MSME – SAMADHAN – Delayed Payment
Monitoring System
Salient Features
• Acknowledgement on registered E-mail as proof.
• work order is compulsory. In case purchase order is oral an affidavit to that
effect is to be submitted.
• Stipulated period to resolve the case is 90 days from the date of receipt of
application.
• Responsibilities and powers of Council members are at par with Judges
• Legal notice by the supplier to buyer is not necessary before filling the case in
the Council.
• No penalty for false case by the seller, case is simply rejected
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27. MSME – SAMADHAN – Delayed Payment
Monitoring System
Salient Features
• All types of dues are liable to file the claim i.e. EMD, Statutory Deposit etc.
Claim not restricted only for supply or provision of service.
• For acceptance or rejection of goods, 15 days period is allowed.
• State government under Section 20 of MSMED Act, 2006 is empowered to
constitute a council.
• No restriction on buyer. Case can be filed against government department.
• Law of limitation is not applicable. However, there should not be delay and
latches on the part of the supplier
• Supporting documents are PO, DC, Invoice, Demand letter.
• Notice on E-mail or Whatsapp is valid notice.
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28. MSME – SAMADHAN – Delayed Payment
Monitoring System
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29. Organizational Structure
At Central Level
• Ministry of MSMEs ( Cabinet + State)
￮ SME Division (Small and Medium Enterprise Division)
￮ ARI Division ( Agro and Rural Industry)
￮ IF Wing ( Integrated Finance)
￮ DATC & DBT Division (Data Analytics and Technical Coordination And
Direct Benefit Transfer)
￮ Office of the Development Commissioner (DCMSME)
• Small Industries Development Organisation (SIDO)
• National Small Industries Corporation(NSIC)
• Entrepreneurship Development Institutions (EDIs)
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30. Organizational Structure
ARI Division (Agriculture and Rural Industries Division)
• Khadi and Village Industries Commission (KVIC)
• Coir Board
• Mahatma Gandhi Institute For Rural Industrilisation(MGIRI)
• Prime Minister’s Employment Generation Programme (PMEGP),
• Scheme of Fund for Regeneration of Traditional Industries (SFURTI) A Scheme
for Promoting Innovation,
• A Scheme for Promoting Innovation, Rural Industry and
Entrepreneurship(ASPIRE).
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31. Organizational Structure
Office of the Development Commissioner (DCMSME) -
Network
a) MSME-Development Institutes (DI),
b) Regional Testing Centres,
c) Footwear Training Institutes,
d) Production Centres,
e) Field Testing Stations
f) specialized institutes.
Services Rendered
a) Advising the Government in Policy formulation for the promotion and development of MSMEs.
b) Providing techno-economic and managerial consultancy, common facilities and extension services
to MSME units.
c) Providing facilities for technology upgradation, modernization, quality improvement and
infrastructure.
d) Developing Human Resources through training and skill upgradation.
e) Providing economic information services. 31

32. Organizational Structure
At State Level
• Directorate of Industries
• District Industries Centres
• State Finance Corporation
• State Industrial Development Corporation
• Technical Consultancy Organisations
• Entrepreneurship Development Institutions (EDIs)
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33. Institutional Support
• Industry Associations (MCCIA, LUB, FICCI, CII)
• NGOs
• SIDBI
• NABARD
• Banks/Financial Institutions/ NBFC/ Self Help Group
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34. THANK YOU
BSE - INTERNAL