The original Notification number S.O. 2119 (E), dated June 26, 2020, has been amended by the Ministry of Micro, Small and Medium Enterprises (MSME), via Gazette Notification number S.O. 2134(E), dated May 6, 2022.
The Ministry has issued a change to Paragraph 7, which addresses registering current businesses, through this Notification.
According to a statement from MSME, businesses that were already registered before June 30, 2020 would only be valid as of June 30, 2022. The expiration date had previously been moved from December 31, 2021, to March 31, 2022.Udyog Aadhaar Memorandum 202 (UAM) registrations are still valid for businesses that fall under the MSME category. The Udyog Aadhaar Memorandum (UAM) validity has been extended through June 30, 2022, according to the Ministry of MSME. This choice was made to make it easier for UAM holders to take advantage of the provisions of various programmes and incentives, including the advantages of MSME Priority Sector Lending.
Synopsis of MSME Notification
Ministry of Micro, Small and Medium Enterprises (MSME), vide Gazette Notification no. S.O. 2134(E), dated May 6, 2022, has issued an amendment to the original Notification number S.O. 2119 (E), dated June 26, 2020
- Through this Notification, Ministry has provided an amendment in Para 7, which deals with registering existing enterprises.
- MSME announced that the existing enterprises registered before June 30, 2020, shall remain valid only from June 30, 2022. Previously the last day of validity was extended from December 31, 2021, to March 31, 2022.
The new system of Udyam Registration
As mentioned above, Last year, on June 26, the MSME issued a Notification number S.O. 2119 (E), changing the definition of MSMEs and introducing a new process for the registration of MSMEs, i.e., Udyam Registration. Per this Notification 2119(E), the Ministry has classified the entity as Micro, Small, and Medium based on the investment in plant, machinery, or equipment. Any person who intends to establish an MSME must file Udyam Registration online in the Udyam Registration portal. The Notification also deals with the following procedures:
- Composite criteria of investment and turnover for classification
- Calculation of investment in plant and machinery or equipment
- Calculation of turnover
- Udyam MSME Registration process
- Registration of existing enterprises
- Updating of information and transition period in Udyam Portal
- Facilitation and grievance redressal of enterprises
Important Announcement for UAM Holders
As mentioned above, the existing registrations as E.M. Part II and UAMs will not remain valid after June 3, 2022. The entrepreneur is strongly recommended to file new registration in the new Udyam Registration Portal. According to the Ministry’s original Notification No. S.O. 2119 (E) dated 26.6.2020 “All enterprises registered till June 31, 2020, will be re-classified under this notification”. It is necessary to enter the latest details to make the re-classification proper and realistic. Note: The entrepreneur should file new registration in the Udyam Registration Portal. Therefore, all enterprises with E.M. Part II and UAMs are advised to register on the Udyam Registration well before 30.06.2022 in Udyam Registration.
The validity of the Udyog Aadhaar Memorandum (UAM)
As per this Notification Ministry, they announced that “The existing enterprises registered before June 30, 2020, shall continue to be valid only for a period up to the 30th day of June 2022”. Therefore, it is emphasized that all the existing Entrepreneurs Udyog Aadhaar Memorandum (UAM) obtained until 30.06.2020 will remain valid till 30.06.2022. With this Notification, MSME announced that the validity of the MSME license, which was extended from December 31, 2021, to March 31, 2022, will be extended for some time to allow such MSMEs to migrate to the new portal and continue to receive government benefits. The present MSME registration (Udyog Aadhaar Number (UAN) or E.M.) would become valid till June 30, 2022.
FAQs
What Is the Udyog Aadhaar Memorandum (UAM)?
The Udyog Aadhaar Memorandum (UAM) is a government scheme that helps businesses register with the government.
It is a simple, online process that allows businesses to register their company name, contact details, and other important information. The UAM also allows businesses to access a host of government benefits, including subsidies and tax exemptions.
The process is quick and easy, and can be completed in just a few minutes. So if you are starting a business, make sure to register with the UAM.
How to Register Your Business with Udyog Aadhaar Memorandum
- A signed application form;
- A copy of your company registration certificate or memorandum and articles of association;
- A copy of your bank statement or any other proof of financial viability;
- A copy of your PAN card; and
- A copy of your GST registration certificate (if applicable).