Home Business Msme Step-by-Step Guide to Migrating to Udyam (Re-Register)

Msme Step-by-Step Guide to Migrating to Udyam (Re-Register)

16
0

What exactly is MSME?

Micro, Small, and Medium Enterprises (MSME) is an abbreviation for Micro, Small, and Medium Enterprises. The MSME classification is based on the enterprise’s investment cap as well as the machinery or equipment it employs. The investment criterion for each of these are as follows for a Manufacturing enterprise:

Also read-  msme registration

As a result of this demand, the government has implemented significant adjustments under the Atma Nirbhar Bharat Abhiyan (ABA).

The reforms implemented have resulted in the establishment of a composite scheme in which investment and annual revenue of firms (or SME) are both taken into account when classifying businesses as MSME.

A Step-by-Step Guide to Migrating to Udyam (Re-Register):

Follow the steps mentioned below to re-register for Udyam Registration:

Step 1: Navigate to the Udyam Registration page.

Step2: From the drop-down menu, select udyam Re-Registration.

Step 3: You will be led to a new page where you can input your Udyog Aadhaar Number and select an OTP option such as OTP on Mobile or OTP on Email.

Step 4: From the drop-down option, select ‘Validate and Generate OTP.’

Step 5: Enter the OTP received to your registered cell phone and then continue.

Step 6: Verify your Udyog Aadhaar Number

Online Correction of Udyog Aadhar:

Follow the steps below to update your Udyog Aadhar:

Step 1: Navigate to the udyam registration page.

Step 2: Select “Update udyam registration” from the drop-down menu.

Step 3: You will be presented with two alternatives; choose the ‘Udyog Aadhar Update’ option.

Step 4: On the screen, a new page for MSME Udyog Aadhar Update will appear.

Step 4: Enter your 12-digit UAM number for Udyog Aadhar Registration Update.

Step 5: Choose one of the OTP options, such as OTP by phone number or OTP by email address.

Step 6: Enter the verification code in the box given.

Step 7: From the drop-down option, select ‘Validate & Generate OTP.’

Step 8: Enter the OTP received on the appropriate option.

Step 9: Once the MSMEe udyog Aadhaar has been confirmed, the necessary changes can be done.

What procedures must be taken to obtain an MSME certificate?

Follow the procedures below to download your Udyog Aadhar certificate using your UAM number:

Step 1: Navigate to the udyam registration page.

Step 2: On the homepage of the website, click the ‘Print’ button.

Step 3: You will be sent to a new page where you may download the Udyog Aadhaar Memorandum.

Step 4: To download MSME Udyog Aadhar, input your UAM No.

Step 5: Enter the phone number from your Udyog Aadhaar card.

Step 6: Click the “Submit” button.

Step 7: A one-time password (OTP) will be sent to the phone number you gave during registration.

Step 8: Enter the OTP to begin the validation process.

Step 9: The Udyog Aadhaar card will be downloaded as a pdf file.

Udyam Registration Update:

If there are any issues or you need to edit certain details, you can use the new Udyam Registration Portal to modify the Udyam Registration form. However, in order to update information, your mobile number must be registered with Aadhaar, as verification requires a one-time password (OTP).

Udyam Registration Printing:

You can print your Udyam Registration Certificate, Udyog Aadhaar Memorandum (UAM), and Udyog Aadhaar Application using the new Udyam registration portal and a validating one-time password sent to your registered mobile number.

Keep the following points in mind when registering as a new entrepreneur or re-registering with Udyam:

If you’re a first-time business owner, consider the following:

  • The registration form must follow the instructions on the Udyam Registration portal.
  • Udyam registration cannot be completed without a 12-digit Aadhaar number.
  • The proprietor’s Aadhaar number, or that of the controlling partner in the case of a partnership firm, or that of a karta in the case of a Hindu Undivided Family (HUF), must be used.
  • In the case of a Company, a Limited Liability Partnership, a Cooperative Society, a Society, or a Trust, the organization or its authorized signatory must give GSTIN PAN and Aadhaar Number.
  • If a company is legally registered as an Udyam with PAN, any data gaps from past years when it did not have a 10-digit PAN will be filled in using self-declaration.
  • An enterprise may not file more than one Udyam Registration. However, any number of manufacturing, service or both operations may be listed or added in a single Udyam Registration.
  • If someone willfully misrepresents or tries to suppress self-declared facts and figures appearing in the Udyam Registration/updation procedure, they will be subject to the punishment provided in section 27 of the Act.

If you re-register for Udyam Registration, you will receive a discount:

  • On or after July 1, 2020, all current firms registered under EM–Part-II or UAM must complete the Udyam Registration on the new platform.
  • Reclassification of existing businesses in compliance with the new MSME registration rules is required until June 30, 2020.
  • Existing businesses that were registered before the 30th of June, 2020, will only be valid until the 31st of March, 2021.
  • If an entity has already registered with another Ministry of Micro, Small, and Medium Enterprises organization, it must re-register with Udyam Registration.

The Advantages of Udyam Registration:

The following are the advantages of Udyam Registration:

  • Assists in obtaining government contracts
  • Bank loans are readily available at a reasonable rate of interest (up to 1.5 percent lower than interest on regular loans)
  • Udyam is eligible for a number of tax breaks.
  • Obtaining permits, permissions, and registrations is simple, regardless of the type of business.
  • Credit is easy to get by, and the interest rates are low.
  • Having an Udyam Registration Certificate entitles you to the tariff, tax, and capital subsidies.
  • As many rebates and concessions are applied to the cost of a patent or the cost of establishing an industry, the cost of a patent or the cost of establishing an industry is reduced.

Calculation of Plant and Machinery/Equipment Investment

The following formula is used to calculate the investment in plant and machinery or equipment:

  • The calculation is based on prior years’ Income Tax Returns (ITRs) filed under the Income Tax Act of 1961.
  • If no prior ITR is available (i.e. in the case of a new business), the investment will be based on the promoter’s self-declaration, which will be valid until the 31st March of the financial year in which the first ITR is submitted.
  • The term ‘plant and machinery/equipment of the business shall be interpreted to mean the same thing as it is defined in the Income Tax Rules, 1962, enacted under the Income Tax Act, 1961, and will include all physical assets (except for land and building, furniture and fittings)
  • If the firm is a new one with no ITR, the purchase value (i.e. the invoice) of the plant and machinery/equipment purchased first hand or second hand, minus Goods and Services Tax (GST), will be taken into account on a self-disclosure basis.

Turnover Calculation:

The following is how turnover is calculated:

  • When calculating the turnover of any firm, whether micro, small, or medium, for classification reasons, exports of products or services, or both, must be excluded.
  • The Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN must be linked to information about an enterprise’s turnover and exports turnover.
  • For the period up to 31st March 2021, the data pertaining to the turnover of such businesses that do not have a valid PAN will be taken into account on the basis of self-declaration, and thereafter, PAN and GSTIN will be required.

Suggested read- udyam registration online

Previous articleThe Secrets to Preparing Accurate Wax Paper Bags
Next articleWhat are Cannabis Seed Boxes and for Which Purpose are They Used?

LEAVE A REPLY

Please enter your comment!
Please enter your name here