As a historically significant, bold initiative and a landmark decision, the Ministry of Central Micro, Small and Medium Enterprises (MSMEs) has issued a Unified Notice on Registration and Classification Guidelines for MSMEs. To get more about the MSME registration, read more and get to know more about company registration chennai.
It may be recalled that on June 1, 2020, the Ministry issued a statement on the new definition of classifying small, medium and micro enterprises on the basis of investment and turnover. It was also announced that it would come into effect from July 1, 2020.
Accordingly, the Ministry of Micro, Small and Medium Enterprises has announced in advance the steps to implement the new procedures from next month. To this end, the Ministry in June held a series of consultations with stakeholders, including the Advisory Board, Income Tax, Goods and Services Tax, State Government Officials and Micro, Small and Medium Enterprises Associations.
Based on this, the Ministry of Small and Medium Enterprises has issued a detailed notification on 26 June 2020.
This announcement provides detailed definitions for small, medium and micro enterprises. It also details the procedure for registration and the arrangements made by the Ministry for this purpose.
Another important aspect of this announcement is that it will have the upper hand over all notices already issued regarding the classification or registration of small, medium and micro enterprises. Now it is enough to quote this statement only for matters related to classification or registration of entrepreneurs, businesses and micro, small and medium enterprises.
* From now on, micro, small and medium enterprises will be called UDYAM. This is very close to the word industry. Accordingly the registration procedure is said to be the Udyam Registration.
* As another historic milestone, the Ministry has issued the following statement. You can apply for Udyam registration online on the basis of self-notification. There is no need to upload anything like documents, evidence or sources.
* Officials said this is possible as there are procedures for registration of utility fully integrated with income tax, goods and services tax. They also said that the information filled online would be verified on the basis of PAN number or GSTIN details.
Other key features of the notice include:
* Can register with a company based on reference number only. Other details may be provided on a self-declaration basis. No documents need to be submitted or uploaded. So, there is really no paperless practice;
* As already announced, investment and `turnover ‘in` manufacturing plant and machinery or equipment’ will now be the basic definition for the classification of micro, small and medium enterprises;
* This notice clarifies that no matter what the company, regardless of whether it is a micro, small or medium enterprise, it will not include exports of goods or services or both when calculating turnover;
* Registration procedures can be done online at the website. The website will be open to the public on July 1, 2020, when the new procedure will take effect.
* For the first time, MSMEs have developed a robust approach to facilitating micro, small and medium enterprises. Developed by the Ministry.
* This will be done in a single window practice at the district and regional level. This can be helpful for entrepreneurs who for some reason are unable to register. At the district level, the responsibility of providing facilities to entrepreneurs has been given to the district business centers. Similarly, the recent initiative of the Ministry of Champions Control Rooms has made it legally responsible for providing registration and post-service services to such entrepreneurs.
* Those who do not have a valid Aadhar number can access the single window procedure for requesting or identifying Aadhar registration, bank account book photo, voter ID card, passport or driving license. After getting the reference number, they will be facilitated in a single window procedure for registration.
* The Minister of Micro, Small and Medium Enterprises, Mr. released the new guidelines today. Nitin Gadkari said that the new procedure for classifying, registering and facilitating MSMEs would be very simple, yet expeditious, uninterrupted, a global best practice and a revolutionary step towards simplification of business. Small, medium and medium sized facing numerous challenges during this period
He said these measures and action plans would give a strong assurance that the ministry is on the side of the industry.