A Micro, Small, Medium (MSME) Enterprise will now be known as Udyam as per the notification issued by the Ministry of MSME on 26 June 2020. The ministry has also come up with detailed criteria for the classification of MSMEs and the procedure for registration and the arrangements made by the ministry for facilitation in this process. The notification clarified that exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether micro, small or medium. It further stated that the registration process will be known as Udyam Registration. The MSME Ministry notified that Udyam Registration can be filed online based on self-declaration with no requirement to upload documents, papers, certificates or proof. An enterprise can be registered just on the basis of Aadhaar number. The new online registration is made available from 1 July 2020.
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely –
- a micro-enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
- a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and.
- a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Udyam Registration Process –
- Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof.
- On registration, an enterprise (referred to as ― Udyam in the Udyam Registration portal) will be assigned a permanent identification number to be known as ―Udyam Registration Number.
- An e-certificate, namely, ―Udyam Registration Certificate shall be issued on completion of the registration process.
This is all about the basics of Udyam Registration. Once your MSME is registered under udyam you would need business software to manage daily business transactions. EZO is an all purpose Accounting software as well as a business app that helps in Billing, Inventory management, Banking, Invoicing and much more.