The Ministry of MSME scrapped the old system of Udyog Aadhar / MSME Registration and replaced it with a new system called as Udyam Registration

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Udyog Aadhaar Registration

• https//www.udyogaadhar.co.in/

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The Ministry Of MSME Scrapped The Old System Of
Udyog Aadhar / MSME Registration And Replaced It
With A New System Called As Udyam Registration
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In order to help small businesses start, sustain
and grow the Ministry of Small, Medium and Micro
enterprises has laid down a system through its
MSME Act 2006. This system facilitated their
registration via MSME Registration upon which the
database was extensively used by the government
mechanism to provide support to small, medium and
micro businesses across the country. Further, to
easy the process of registration the ministry
introduced Udyog Aadhar which was a replacement
to the old system of offline registration
process. It enabled MSMEs to avail simple and
easy registration online using just their Aadhaar
card information. It was an instant hit within
all MSMEs and the financial and allied
institutions also obtained the same smoothly to
help MSMEs avail various benefits passed on to
them.
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With effect from 1st July 2020, the ministry of
Micro, Small and Medium Enterprises has
discontinued the previously known system of Udyog
Aadhaar Registration MSME Registration and has
implemented a completely new system of Udyam
Registration. This transition from Udyog Aadhaar
to Udyam Registration is not the same as it was
for MSME Registration to Udyog Aadhaar.
Previously when the old system was implemented
the older MSME registrations remained valid, but
unlike that this time the Ministry of MSME has
announced that all old registrations of Udyog
Aadhar or MSME Registration will stand to remain
invalid and all MSMEs are hereby instructed to
either migrate their older registration to the
new Udyam Registration or obtain a fresh
registration altogether.
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The new system has adopted even advanced
mechanisms of digital authentication and
verification by implementing a QR Code based
system. Every Registration document comes with a
unique QR Code which will be used by every
Ministry of MSME channel partner to verify and
report information about the MSME. The new system
will now categorize MSMEs not just on the basis
of Investment value but also on the basis of
turnover. This is being done to promote and push
MSMEs towards being Champions in their trade.
MSMEs with less investment but more turnover are
being awarded as being CHAMPIONS and with special
benefits over time.
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Enterprises will be categorized in three
categories namely Micro, Small Medium
Enterprises. Micro enterprises Enterprises with
investments up to Rs. 1 crore and turnover up to
Rs. 5 Crores. Small enterprises Enterprises
with investments up to Rs. 10 crore and turnover
up to Rs. 50 Crores. Medium enterprises Enterpri
ses with investments up to Rs. 50 crore and
turnover up to Rs. 250 Crores. To verify
information provided by applicants the Ministry
of MSME has also signed a MOU with CBDT which
will actively share data with respect to
investment turnover submitted at the time of
filing ITR.
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In this new system now GST data is also being
shared and synced with the database of MSMEs in
order to actively categorize and provide benefits
accordingly. Applicants have been informed to
provide PAN GST information by 1st April 2021.
With effect from 1st April 2021 it will be
mandatory to provide PAN GST information by
Udyamis to avail scheme benefits. The Udyam
Registration scheme is primarily aimed at data
collection with regards to MSMEs across India who
wish to extend partnership with the MSME towards
helping them with growth. All MSMEs registered
need to present a valid Udyam Registration
Certificate to channel partners at the time of
availing any kind of benefits passed on to them
by the Ministry of MSME. There are various other
new and improved benefits offered by this new
system of Udyam Registration which will be
declared and discussed here over time.