Online registration will be enough to start MSME from July 1, government releases notification
The registration process for setting up Micro, Small and Medium Enterprises (MSME) is being started with the definition of MSME changing from July 1. In this regard, a notification has been issued by the Ministry of MSME under the name Enterprise Registration. According to the notification, any person who wants to set up micro, small or medium enterprises can register online enterprise on the enterprise registration portal of the ministry. The process of registration will be fully self-proclaimed and self-certified.
No documents of any kind will have to be uploaded during registration. Only the form given on the enterprise registration portal has to be filled. No fee will be charged for registration, but it will be necessary to have an Aadhaar number. After registration, the entrepreneur will be permanently given an enterprise registration number. The e-certificate of enterprise registration will be issued as soon as the registration process is complete.
According to the notification, on receipt of the enterprise registration, the enterprise will post detailed information of last year’s GST return and ITR on the online portal. On this basis, classification of the enterprise category will be done automatically. Meaning, whether it is enterprise micro category or small or medium, this will be explained. According to the notification, even if an enterprise is changing their category due to new investment in machinery or increase in their turnover, they will have to remain in their old category that year. His category will change next year. From July 1, the definition of MSME will be decided on the basis of investment in machinery and turnover.
Enterprises with less than one crore investment in machinery and less than five crore turnover will fall under the category of micro. In the small category with investment up to 10 crores in machinery and turnover up to 50 crores, then in the category of medium enterprises with investments up to 50 crores in machinery and turnover up to 250 crores.
According to the notification, the promoters of new enterprises who do not have an ITR can give investment information on the basis of self declaration. But after one year, the category will be decided on the basis of the ITR available.
There is already a system of registration of entrepreneurs by the Ministry of MSME and on filling the Online Industry Aadhaar Memorandum (UAM), the entrepreneurs are issued an Aadhaar number. According to the notification, the entrepreneurs who have registered themselves on UAM will have to register themselves again on the new portal. According to MSME experts, the biggest advantage of registering is that registered MSMEs can take advantage of the government scheme.
