We shoplegal provides Udyam registration in India - Micro, Small and Medium Enterprise MSME/SSI introduced by Indian government in accordance with MSMED Act, 2006 which is for the entities engaged in the production, manufacturing, processing or preservation of goods and provision of services. Registration under MSME is not mandatory but registering SSI will be helpful to get several benefits
Easy to avail bank loansEligible to get Industrial promotion subsidyEligible for subsidy for purchase of machineryProtection against delayed paymentsExemption in Interest rate on Overdrafts can avail benefit of 1%.Concession in ElectricityVery easy to get approval, licenses and registrations.Get 50% concession on Patent and Trademark registration| TYPE OF INDUSTRIES COVERED | MICRO | SMALL | MEDIUM |
|---|---|---|---|
| MANUFACTURING & SERVICES | Investment in plant and machinery or equipment not more than one crore rupees and turnover not more than five crore rupees | Investment in plant and machinery or equipment not more than Ten crore rupees and turnover not more than Fifty crore rupees | Investment in plant and machinery or equipment not more than Fifty crore rupees and turnover not more than Two Fifty crore rupees |
In case of Proprietorship, Aadhar of proprietor required for udyam registration
In case of Partnership,Aadhar of Managing Partner required for registration in Udyam
In case of Private limited company, One Person company, Public limited, Section 8, Society or Trust – Aadhar of Authorised signatory and Copy of GST certificate and PAN is mandatorily required for Udyam registration.
Both criteria of investment and turnover will apply for classification of an enterprise as to whether micro, small or medium.
If an enterprise registered under Udyam Registration crosses the ceiling limits given for its present category - Either one of the two - Investment or Turnover Example - Micro enterprises crosses Turnover of 5 crore but Investment below One Crore –It will cease to continue in Micro category will be moved to next category as Small enterprises and moved to the next category likewise
If an enterprise goes below the ceiling limits specified for its present category For example a Small entity having Investment of Rs.6 Crore and Turnover of 15 crore in the previous year, In the current year Turnover become 4.5 crore and Investment remains the same as Rs.6 crore it will continue as Small entity in otherwise if the investment reduced below 1 crore then it satisfies both the criteria of investment as well as turnover it will be moved to the lower category as MICRO enterprise
All units having unique Goods and Services Tax registration (GST) for the same PAN number For example – A single PAN having 3 to 4 GST registration under separate business will be treated as one entity and the turnover and investment for all of such entities shall be seen together and only the collective values will be taken into consideration for deciding the category as to micro, small or medium enterprise.
The calculation of investment in plant and machinery of a enterprises will be directly linked to the Income Tax Return filed for the previous years.
For new enterprise, which not filed income tax prior to registration, the investment can be mentioned as self-declaration by the promoter of the entity and such relaxation of self declaration will end after the 31st March of the financial year in which the new entity files it Income Tax return.
The wording plant and machinery or equipment of the enterprise, will have the same meaning as provided to the plant and machinery in the Income Tax Rules framed under the Income Tax Act, 1961 and will include all assets other than land and building, furniture and fittings.
The purchase value of a plant and machinery or equipment as per the invoice whether purchased as new machinery or second hand, shall be taken into account excluding the GST on self-disclosure basis.
Exports of goods or services will be excluded while calculating the turnover of any enterprise - micro, small or medium, for the purposes calculating turnover.
Information with regard to turnover and exports turnover for an enterprise shall be linked to the Income Tax, CGST Act and GST.
The turnover related figures of such enterprise which are not having PAN will be taken into consideration on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN is mandatory
The existing MSME/SSI registered under udyog aadhar prior to June 30th 2020 shall be valid only till 31st March,2021. Such MSME/SSI registered prior to June 30th can register under udyam registration portal from 1st July,2020.
Enterprises which are registered prior to June 30th,2020 shall be reclassified under this new notification. So as per this new notification all MSME registered under Udyog Aadhar or EM Part I or Part II should mandatorily register under Udayam registration on or before 31st March,2021.
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