What is MSME / Udyam?
The Govt of India has enacted the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 to support and promote small and medium business. There are various multiple benefits available to registered enterprises under MSMEs / Udyam. So to get the benefit, registration under MSMEs is important.
The main purposes of the MSMEs / Udyam registration are as under :-
1) To facilitate the small and medium enterprises to compete in the international market with quality at a lower cost.
2) To provide training at lower rate.
3) To give the exposure and protect against big corporates
MSMEs / Udyam Scheme criteria as revised wef 1st July 2020 :-
Classification |
Limit |
Micro |
Investment in Plant and Machinery or Equipment:
Not more than Rs.1 crore and Annual Turnover not more than Rs. 5 crore
|
Small |
Investment in Plant and Machinery or Equipment:
Not more than Rs.10 crore and Annual Turnover not more than Rs. 50 crore
|
Medium |
Investment in Plant and Machinery or Equipment:
Not more than Rs.50 crore and Annual Turnover not more than Rs. 250 crore
|
Investment not includes land & Building and Furniture
Investment amount without GST
Turnover not includes Export of Goods and Service
MSME UDYAM REGISTRATION OF EXISTING MSME ENTERPRISES :-
As per new definition of MSME w.e.f 01st July, 2020, the existing registered enterprises are required to get themselves registered as Udyam on Udyam Registration Portal again
The existing enterprise registered under EM-Part-II or UAM (Udyog Adhaar Memorandum) shall register again under Udyam Registration
All existing enterprises registered till 30th June, 2020, shall valid up to the 31st March, 2021. So all these existing MSME enterprises shall get themselves registered under Udyam Registration on or before 31st March, 2021.
Reclassification: All those existing enterprises shall be reclassified in accordance with this new notification.