Udyam registration

UDYAM REGISTRATION
Effective from 1 July, 2020
Prepared By:
PALANKARTA LLP
www.Palankarta.com
#1 : +91 95095 83991
#2 : +91 89767 57381
#3 : +91 95790 52956
#4 : contactus@palankarta.com

SCOPE OF THE PRESENTATON
 Brief Intro about Palankarta LLP
 Evolution of Udyam Registration
 Definition of MSME
 Criteria of Investment and Turnover for Classification
 Calculation of Investment in Plant and Machinery or
Equipment
 Calculation of Annual Turnover
 Registration process for new and existing enterprises
 Changes in Classification
 Benefits of registering as an Udyam.
 Q &A Session
2
contactus@palankarta.com 2 www.palankarta.com

Brief Intro about Palankarta
 We have our own office in Mumbai, Rajasthan and Gujarat and
associates present across India
 Palankarta is originated from the word Palan meaning compliance and
Karta meaning who does the compliance. Thus, the objective of our
organization is to create awareness ensuring compliance at the same
time.
 The same has been promoted by group of professional having
Chartered accountant, Company Secretary, Lawyer, retired Government
employees and other professionals
 All Financial Services are provided by us. For more details please visit at
www.palankarta.com
3

Recognized for Govt of India
4

POLL
QUESTION – 1
Are you aware Udyam?
5

Evolution
EM – Part I – Entrepreneurs Memorandum
EM – Part II - Entrepreneurs Memorandum
SSI – Small Scale Industry
UAM - Udyog Adhar Certificate
U R - Udyam Registration
6

Definition
The Central Government has notified certain criteria for classifying the
enterprises and has specified the form and procedure for filing the
memorandum(known as “Udyam Registration”), with effect from the 1st day
of July, 2020.
Classification Eligibility
MICRO Investment < Rs 1 cr
and Turnover< Rs 5 cr.
SMALL Investment< Rs 10 cr and
Turnover< Rs 50 cr.
MEDIUM Investment< Rs 50 cr and
Turnover< Rs 250 cr.
7

CRITERIA OF INVESTMENT &
TURNOVER FOR CLASSIFICATION
 A composite criterion of investment and turnover
shall apply for classification of an enterprise as micro,
small or medium.
 All units with Goods and Services Tax Identification
Number (GSTIN) listed against the same Permanent
Account Number (PAN) shall be collectively treated as
one enterprise and the turnover and investment
figures for all of such entities shall be seen together
and only the aggregate values will be considered for
deciding the category as micro, small or medium
enterprise.
8

CALCULATION OF INVESTMENT
IN P&M OR EQUIPMENT
The calculation of investment in ‘plant and machinery or equipment‘
including all tangible assets other than land & building, furniture &
fittings and as defined under Income tax Act and rules there under will
be linked to the ITR of the previous years filed under the Income Tax
Act, 1961.
 In case of a new enterprise, where no prior ITR is available, the
investment will be based on self-declaration of the promoter of the
enterprise and such relaxation shall end after the 31st March of the
financial year in which it files its first ITR.
The purchase value of a plant and machinery or equipment, whether
purchased first hand or second hand, shall be taken into account
excluding Goods and Services Tax (GST), on self-disclosure basis, if the
enterprise is a new one without any ITR.
9

CALCULATION OF TURNOVER
Exports of goods or services or both, shall be
excluded.
 Information as regards turnover and exports
turnover for an enterprise shall be linked to the
Income Tax Act or the Central Goods and Services Act
(CGST Act) and the GSTIN.
 The turnover related figures of such enterprise 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.
10

SCOPE OF THE PRESENTATON
POLL
QUESTION – 2
Are you Registered?
11

REGISTRATION PROCESS
The form for registration shall be as provided in the Udyam
Registration portal and opens with the URL
https://udyamregistration.gov.in.
There will be no fee for filing Udyam Registration and no requirement
to upload documents, papers, certificates or proof.
The Aadhaar number of the proprietor in the case of a proprietorship
firm, of the managing partner in the case of a partnership firm and of
the karta in the case of an HUF shall be required for registration. In
case of a Company/ Limited Liability Partnership or a Cooperative
Society/Society /Trust, the organisation or its authorised signatory
shall provide its GSTIN and PAN along with its Aadhaar number.
“Udyam Registration Number” and an e-certificate “Udyam
Registration Certificate” shall be assigned on completion of the
registration process.
12

REGISTRATION OF EXISTING
ENTERPRISES
All existing enterprises registered under EM–Part-II or
UAM shall register again on the Udyam Registration
portal on or after the 1st day of July, 2020.
All enterprises registered till 30th June, 2020, shall be
re-classified as per the new criteria.
 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. An enterprise
registered with any other organisation under the
Ministry of Micro, Small and Medium Enterprises shall
register itself under Udyam Registration.
13

CHANGES IN CLASSIFICATION
In case of graduation (from
a lower to a higher category)
i.e. upward change in terms
of investment in plant and
machinery or equipment or
turnover or both, and
consequent reclassification,
an enterprise will maintain its
prevailing status till expiry of
one year from the close of
the year of registration.
In case of reverse-
graduation 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 such
change took place.
GRADUATION REVERSE-GRADUATION
14

POLL
QUESTION – 3
Are you aware about the Benefit of
Udyam Registration?
15

BENEFITS OF REGISTERING
AS AN UDYAM
 Bank loans at cheaper interest rate (Upto 1.5%
lower than interest on regular loans
 Various tax rebates
 Easy to obtain licenses, approvals and registrations
 Easy access to credit at lower interest rates
 The cost of getting a patent or the cost of setting
up an industry reduces as many rebates and
concessions are available
16

SOME OTHER IMPORTANT BENEFITS OF
GETTING UDYAM REGISTERATION
•MSME Registered entity gets eligible for CLCSS
(credit linked capital subsidy scheme)
•Subsidy is available for Patent registration
•Industrial Promotion Subsidy (IPS) Subsidy
Eligibility
•One can avail 100% Collateral Free loans from all
banks
•Special consideration on International Trade fairs
•Bar Code Registration Subsidy
•Waiver in Security Deposit in Government Tenders
and Departments
•Concession in Electricity bills
17 contactus@palankarta.com 17 www.palankarta.com

POLL
QUESTION – 4
Do you think Udyam Registration
is Benefical to you?
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To all those with Yes or with Query,
Palankarta will guide you in getting all
necessary help required to Get Udyam
Registration
Visit our website www.palankarta.com or
reach us at contactus@palankarta.com
to connect with our team .

THANK YOU
ALL
But its not
the end of
session…

21
We can be reached at
contactus@palankarta.com

POLL
QUESTION – 5
Did presentation gave you better
understanding of Udyam Registration?
22

K
1
For More Details:
PALANKARTA LLP
Location:
MUMBAI | AJMER | NAGPUR | SURAT
Website:
www.Palankarta.com
Contact Us:
Post your queries at:
contactus@palankarta.com

Udyam registration

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