Ease of Doing Business for MSMEs: To improve ease of doing business for new MSMEs, the government has launched a new process for registration and classification of enterprises in the name of a new portal – Udyam registration. Operational from Monday (July 1), registering as MSME on the portal will be completely paperless and based on self-declaration, MSME Ministry said. Small businesses won’t have to upload any documents or proof except the Aadhaar number for registration. The MSME Ministry has also organized a single-window system at Champions Control Rooms (set up at MSME Development Institutes across India) and district industries centres for facilitating the process.
“MSMEs facing the problems in managing multiple documents and registrations such as Udyog Aadhaar etc. will definitely find this single portal for registration helpful. This will also help the government in identifying the possible beneficiaries of various schemes and packages announced for MSMEs such as collateral-free credit, subordinated debt for distressed MSMEs, etc. and pass these benefits directly to them. This is the key reason behind the launching of this registration portal. This will also help in saving time and cost for small businesses,” Sanjiv Layek, Executive Secretary, World Association For Small And Medium Enterprises (WASME) told Financial Express Online.
The portal will provide units with a registration number following which an Udyam Registration certificate will be issued to enterprises. The certificate will have a QR code embedded through which details about the new enterprises could be accessed on the registration portal. Interestingly, MSMEs won’t have to renew their registration, and also the registration process is free of cost.
The ministry added that the information on investment and turnover of the business linked with the PAN and GST will be sourced automatically from the government databases even as the “online system will be integrated with Income Tax and GSTIN systems.”
MSMEs already having registrations like Entrepreneurs Memorandum (EM)-II or Udyog Aadhaar Memorandum (UAM) etc. issued by different authorities under the Ministry of MSME will also have to register themselves again on Udyam Registration portal. MSMEs engaged in multiple manufacturing or service activities may share details while registering on the portal as they cannot file for multiple registrations.
The new registration portal for MSMEs comes over four months after the Ministry of Corporate Affairs launched a new web form for incorporating a business called SPICe+. The new form had replaced the earlier SPICe form that was used for name reservation, company incorporation, DIN allotment, and application for PAN/TAN. The replaced form offers 10 services such as name reservation, incorporation, DIN allotment, mandatory issue of PAN, mandatory issue of TAN, mandatory issue of EPFO registration, mandatory issue of ESIC registration, mandatory issue of Profession Tax registration (Maharashtra), mandatory opening of bank account for the company and allotment of GSTIN if applied for. These services are offered by the Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance and Maharashtra government.