The Ministry of Micro, Small and Medium Enterprise has notified new norms to allow online registration of new enterprises based on self-declaration, doing away the requirement to upload documents and certificates, from July 1, 2020.
As per the notification, MSME Department came up with a new definition/classification of MSMEs, procedure of issuing certificate called as Udyam Registration, composite criteria of investment and turnover, the meaning of investment, calculation of turnover etc has been covered. Udyam Registration will be available for registration from 1st July 2020.
All enterprises registered under EM Part II and UAM are also required to get new registration under Udyam Registration. Enterprises are classified as Micro Enterprises, Small Enterprises and Medium Enterprises but there are upward changes made to cover more enterprises and to extend MSMEs benefit to larger numbers.
All existing enterprises registered on or before 30th June 2020 will remain valid till 31st March 2021.
Accordingly, Micro Enterprises means an enterprise having investment in plant and machinery or equipment up-to 1 Crore and turnover up-to 5 Crore, Small Enterprises means an enterprise having investment in plant and machinery or equipment up-to 10 Crore and turnover up-to 50 Crore and Small Enterprises mean an enterprise having investment in plant and machinery or equipment up-to 50 Crore and turnover up-to 250 Crore.
[Source: Notification No. S.O. 2119 (E) dated 26th June, 2020]
