The new Udyam Registration has been set up in accordance with the new MSME classification that was defined on 1st June 2020 and brought into action on 1st July 2020. This new registration is termed to be the upgraded version of the existing Udyog Aadhar or EM II and shall provide all the benefits that an MSME enjoyed as part of Udyog Aadhar. These Benefits either be it the Financial Benefits, Marketing Benefits, Organizational / Operational Benefits, Government Subsidies & Schemes, or any other will still be valid when one upgrades to Udyam Registration. Detailed benefits of Udyog Aadhar can be found at “MSME Udyog Aadhar: Benefits and Registration”
The advantage of Udyam Registration is that it is an automated system and is linked with multiple government directories such as IT, PAN, and GST so that the Enterprises’ classification is upgraded and downgraded automatically.
However, while there are enormous benefits, there is one notable disadvantage which is “the mandatory need for GST”. Earlier Udyog Aadhar was simple and was based on self-declaration. But, in the case of Udyam Registration, you need to ensure you have GST (if not now, you need to submit before 31st March 2021). For details about this, you can read “PAN and GST necessary for Udyam Registration in future”
How to Upgrade from Udyog Aadhar to Udyam Registration.
The process of upgrading is very simple and can be achieved in less than a minute. Follow the below steps
- Go to Udyam Registration Website www.udyamregistration.gov.in
- Select “For those already having registration as EM-II or UAM”
- Enter Your Udyog Aadhar Number and select Validate & Generate OTP, Enter the OTP and click on Validate OTP
- The System will accept your Udyog Aadhar and gives you a thank you message
If I do this, Is my UDYAM REGISTRATION is complete?
No, This means currently your Udyog Aadhar has been verified and accepted. Using the Udyog Aadhar number, the Udyam Registration System, will connect to the Udyog Aadhar system and collect all your information from your Udyog Aadhar Application Form.
What information does Udyam Registration pick from my Udyog Aadhar Number?
Most of the Information that you have provided as part of the Udyog Aadhar Registration, would be reused from that site as it is. This should fill about 60% of the information required for Udyam Registration. Note that the Udyam Registration Form is very much similar to the Udyog Aadhar Registration Form.
What Information is required from the IT Records?
While registering for Udyog Aadhar, you would have provided your PAN number, with that number, the Udyam Registration portal will connect to the Income Tax database and get the Investment information from the database. It will seek information related to your Investment details, Captial assets, etc., which will provide information about the amount of Investment that you have done to your enterprise. This information is required to qualify your Investment part of the MSME Classification\
What about the GST Information?
Further Using the same PAN Number, the Udyam Registration will seek information from the GST Databases and get the Information on the turnover of the business which reflects in your GST 3B and GST 1 Filing and define the enterprise’s annual turnover in the Udyam Registration. In case you do not have GST number, then this process will be skipped.
Once these 3 process are complete, the Udyam Registration System will identify all the gaps that it needs to completed and sends communications (by email or SMS or both) asking the business to provide self-declaration information on the same.
Once the business provides all this information, they will be asked to Submit and Provide the Final OTP validating the information.
Only once this Final OTP is submitted the E-CERTIFICATE is generated and available for the business to download. Further on, the Information will be automatically acquired from the databases and the MSME classification will be upgraded or downgraded accordingly.
Currently, the System is not yet complete and there is yet no documentation on how much time it would take for the Udyog Registration System to request, validate and update information from the PAN, Income Tax, and the GST Databases. We believe some format of communication will be sent to the registered email and phone number on the status of the registration or when completed.
If you want support towards Udyam Registration. You can Download our SupportMitra App at http://www.supportmitra.com/app.html with Referral code as I10KSME and raise a request and we shall support you on the same.
If you wish to promote your business or your products/services or seek more support in the areas of financial support or marketing support for your business, apply to the Impact10kMSME Campaign at https://www.indiaties.in/impact10kmsme