The Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 provides the legal framework for the classification and registration of MSMEs in India. The government has recently replaced the earlier Udyog Aadhaar Memorandum (UAM) registration process with the Udyam Registration process. Existing MSMEs that have registered under the UAM process need to upgrade to the Udyam Registration to continue availing the benefits under various government schemes. In this article, we will discuss the steps to upgrade to Udyam Registration for existing MSMEs.
Step 1: Visit the Udyam Registration portal
To upgrade to Udyam Registration, visit the official website of the Udyam Registration portal
Step 2: Enter UAM registration number
Enter the UAM registration number of your existing MSME. The portal will verify the UAM registration details and pre-fill some of the basic information.
Step 3: Enter PAN and GST details
Next, you need to provide your PAN and GST details. If your MSME is not registered under GST, then you can leave the GSTIN field blank.
Step 4: Provide other details
In this step, you need to provide your business details such as name, address, email id, mobile number, etc.
Step 5: Submit the declaration
After providing all the necessary details, you need to submit the declaration. The declaration states that the information provided by you is true and correct to the best of your knowledge.
Step 6: Obtain Udyam Registration Certificate
Once you submit the declaration, your application will be verified, and the Udyam Registration Certificate will be issued. You can download the certificate from the portal.
Information on Upgrading to Udyam Registration:
Apart from the steps mentioned above, there are a few additional details that MSMEs need to keep in mind while upgrading to Udyam Registration.
Deadline for upgrading:
The government has set a deadline of 31st March 2022 for existing MSMEs to upgrade to Udyam Registration. After this deadline, UAM registrations will not be valid, and MSMEs will not be able to avail of the benefits under various government schemes.
Changes in Udyam classification:
While upgrading to Udyam Registration, existing MSMEs need to be aware that the classification of their business may change. The new classification will be based on the investment and turnover criteria of the Udyam Registration process. MSMEs should be prepared for any changes in classification and be aware of the benefits and limitations associated with the new classification.
No need for fresh documentation:
Existing MSMEs need not submit fresh documentation while upgrading to Udyam Registration. The Udyam Registration portal will pre-fill some of the basic information based on the UAM registration details. However, MSMEs must ensure that the information provided is accurate and up-to-date.
Benefits of Udyam Registration:
Upgrading to MSME Registration will enable MSMEs to continue availing the benefits under various government schemes such as credit guarantee schemes, subsidies, and exemption from certain taxes. Udyam Registration also provides greater visibility and recognition for MSMEs and helps them access new markets and customers.
Importance of accurate information:
MSMEs should ensure that all the information provided during the Udyam Registration process is accurate and up-to-date. Any discrepancies or incorrect information may lead to delays in the registration process or disqualification from availing of the benefits under government schemes.
After submitting the MSME Registration application, MSMEs need to go through a verification process. The verification process may involve checking of documents, physical inspection of the business premises, or telephonic verification. MSMEs should be prepared to provide any additional information or documentation required during the verification process.
While upgrading to Udyam Registration, MSMEs need to provide a self-declaration stating that the information provided is true and correct to the best of their knowledge. The self-declaration carries legal implications, and MSMEs should ensure that they provide accurate and honest information.
The MSME Registration portal provides online support for MSMEs during the registration process. MSMEs can access FAQs, user manuals, and video tutorials to understand the registration process better. In case of any issues, MSMEs can contact the helpdesk provided on the portal.
Rejection of application:
In case of any discrepancy or incorrect information, the Udyam Registration application may be rejected. MSMEs should ensure that all the information provided is accurate and up-to-date to avoid rejection of the application.
Suggested Read- Update Udyam Certificate
In conclusion, upgrading to MSME Registration is an essential step for existing MSMEs to continue availing the benefits under various government schemes. The process is straightforward, and MSMEs need to ensure that all the information provided is accurate and up-to-date. The new classification based on investment and turnover criteria may lead to changes in benefits and limitations, and MSMEs should be aware of these changes. The government has set a deadline of 31st March 2022 for existing MSMEs to upgrade to Udyam Registration, and MSMEs should ensure that they upgrade before the deadline to avoid any inconvenience or loss of benefits. By upgrading to Udyam Registration, MSMEs can continue to grow and contribute to the Indian economy.