MSME came out with a consolidated notification in the form of guidelines

In a historic move, bold initiative and landmark decision, Ministry of Micro, Small and Medium Enterprises (MSME) has come out with a consolidated notification in the form of guidelines for classification and registration of MSMEs. It may be recalled that Ministry had published a Notification on 1st June, 2020 with new criteria for classification of MSMEs based on Investment and Turnover. Tt will be effective from 1st July, 2020.

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Key-Points

This notification supersedes all earlier notifications issued with regard to classification or registration of MSMEs. Now, the entrepreneurs, enterprises and the MSMEs have to refer to just this notification for matters relating with classification or registration.

MSME will be known as Udyam, as this is more closer to the word Enterprise and accordingly, the registration process will be known as Udyam Registration.

It can be filled online based on self-declaration with no requirement to upload documents, papers, certificates or proof. An enterprise can be registered just on the basis of Aadhaar number.

Investment in ‘Plant and Machinery or Equipment’ and ‘Turnover’ are the basic criteria for classification of MSMEs now.

Exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether Micro, Small or Medium.

In another first, the Ministry of MSME has established a strong facilitation mechanism for the MSMEs. This process is in the form of Single Window Systems at the district level and regional level.

Similarly, Ministry’s recent initiative of Champions Control Roomsacross the country have been made legally responsible for facilitating such Entrepreneurs in registration and even thereafter.