Any business can be classified as Micro, Small or medium Business. You can take a look on the table in which classification of such ventures has been made as per the latest guidelines:
| Classification | Investment in plant, and equipment | Turnover |
| Micro enterprise | Less than INR 10000000 | Less than INR 50000000 |
| Small enterprise | Less than INR 100000000 | Less than INR 500000000 |
| Medium enterprise | Less than INR 500000000 | Less than INR 250000000 |
- Investments in plant and Machinery up to INR 1 Crore and turnover up to INR 5 crores is Micro
- Up to INR 10 Crores is & turnover is up to INR 50 crores is Small
- Up to INR 50 Crores is and turnover is up to INR 250 crores is medium
From last year July 2020, the Union Ministry of Micro, Small and Medium Enterprises launched a new mechanism to register and classify MSMEs which is known as UDYAM registration, new & existing enterprises register themselves on the MSME portal.
Any individual who is planning to start a business whether it is micro, small or medium enterprise may apply for UDYAM registration in the official portal of the scheme. You do not need to upload any get an identification number which will be called UDYAM registration number. This registration number is permanent. After the completion of procedure, the applicant gets a virtual certification which is UDYAM registration certificate.
All units that have Goods and Services Tax Identification Number (GSTIN) given against one PAN number will be treated as one. The investment & turnover of such units are counted as the average of all of them.
Only till the 31st of March 2021, your self-declaration is valid. From and after that day, GSTIN is mandatory.
Forum for UDYAM registration is available on its official portal. This registration if free that means there is no fee for the process. Your Aadhaar number is a must here. You may do according to the instructions you receive on the portal in this regard. If the venture is a LLP i.e. limited liability partnership, trust or a society, it should submit the details of the authorized Aadhaar number & GSTIN of dignitary.
If the venture registers with the PAN no. itself, a self-declaration will compensate for insufficient information. One venture is allowed to have only one UDYAM registration.
Any venture who does not present their information correctly in the self-declaration then they are liable for the penalties given in Section 27 of the MSMED Act. All ventures that are registered with EM–Part-II or Udyog Aadhaar Memorandum are need to have UDYAM registration on or after 1st July.
To register under MSME/UDYAM
Visit “https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.html”
Here is the step by step guidance to register under UDYAM
1. Aadhar Verification
The first step is to validate your Aadhar Number and the Name as per your Aadhar card. The applicant need to be the primary & authorized signatory of the organization.
Once Details are submitted then you can click on VALIDATE & GENERATE OTP button, An OTP will be sent to the registered mobile number with Aadhar Card which has to be submitted and validated
2. PAN Verification
The second step is to validate PAN and provide details of whether ITR is filed of the Previous Year and is there any GST Registration.
3. Fill up Applicant Details
- Name of Applicant
- Category of Applicant
- Address
- Mobile Number and E-Mail ID
4. Fill up Organization Details
- Name of the Enterprise
- Address of the Enterprise
- Name of Plant and
- Plant’s Address
5. Fill up Other Details
- Turnover during Previous Year
- WDV Of plant
- R&D Expenses
- Number of Employees
- Description of NIC Codes
Selection as Manufacturer or Service Provider
Select 2 Digit, 4 Digit, 5 Digit National Industrial Classification Code (NIC codes) on basis of Nature of Business.
6. Submission and OTP
Usually it takes 2-3 Working days for Generating the Certificate.
It is important to note that the cost of UDYAM registration is zero and only professionals will charge their Professional fees itself. So you can follow these by step guide to get UDYAM Certificate.