NEW DELHI: The new process for registration of micro, small and medium enterprises will come into effect in the name of Udyam Registration from Wednesday, July 1, the government said on Tuesday. Last week, the MSME ministry said that an MSME in the country will now be known as ‘Udyam’ since the term comes closer to the meaning of an enterprise. Udyam Registration can be filed online based on self-declaration with no requirement for documents of proof, barring Aadhar, as per the notification issued by the MSME ministry. Udyam Registration has also been fully integrated with the IT and GST systems.
Businesses that have the EM-II (entrepreneurs memorandum) or Udyog Aadhaar Memorandum or any other registration issued by an authority under the MSME ministry, will have to re-register themselves. Finance Minister Nirmala Sitharaman in May announced the change in the definition of MSMEs as part of the relief package for the industry amid the Covid-19 outbreak.
The new definition classifies a micro-enterprise where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees, a small enterprise as that where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees and a medium enterprise, as one where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
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