Udyam Registration – Frequently Asked Questions
The new definition of Micro, Small, and Medium Entities (MSME) has been introduced by the Union Ministry of MSME wide Notification dtd. 26/06/2020, its new name “UDYAM Registration” and a new portal “UDYAM Registration Portal”. A clarification has also been issued by the ministry about new classification criteria in MSME.
Frequently Asked Questions For Udyam Registration Portal
Q.1 How long does the current UAM or EM-Part-II valid for?
All the current UAMs and EM Part II register till June 30, 2020 have the validity of March 31, 2021. Failing to do so with the UDYAM portal before the given date will result in suspension of UDYAM Registration status.
Q.2 What is the time limit of registration for currently registered entities “EM Part II and UAMs”?
The time limit to register EM Part II and UAMs is July 1, 2020 to March 31, 2021, according to the notification dtd. 26/06/2020. However, this service has not been started by UDYAM Portal yet. All the existing UAMs and EM Part II are valid till March 31, 2021.
Q.3 Is the reclassification of entities applicable to register the current entities according to the new criteria for MSMEs?
Yes, reclassification of all entities registered by June 30, 2020 shall be applicable after the new criteria. A notification will be sent by the ministry to entities in both cases, whether it is reverse graduation (down to a lower category) or upward change (from lower to higher category). With fresh UDYAM Registration, re-classification can also be applicable for new entities.
Q.4 What will happen after the upward change with reclassification?
An entity will keep its current status until the end of the year from the closure of the year of registration. For example, if an entity is registered on March 31, 2021, i.e. the last date, the prevailing status will have a validity of one year from the closing of the year after registration, i.e. March 31, 2022, on the upward change in status (Small, Micro or Medium).
Q.5 What will happen after reverse graduation because of reclassification?
An entity has to keep its current status until the end of fiscal year and it will be important for the benefit of status that has been changed w.e.f. April 1 of the financial year only after the year when those changes happened. For example, if an entity has registered on March 31, 2021, i.e. the last date, the benefit of status change will be reflected from April 1 of the fiscal year after which those changes happened, i.e. April 1, 2022.
Q.6 Are PAN and GSTIN required to do UDYAM Registration?
Entities without GSTIN or PAN are relaxed by the ministry until March 31, 2021. They can register by March 31, 2021 on self-declaration basis and GSTIN and PAN will be recommended.
Q.7 Do current entities with UAM should take GSTIN despite the fact that their turnover is not exceeding the limit for GST registration?
As mentioned earlier, GSTIN is important despite the coverage of entities under the definitions for eligible entities for taking GST registration.
Q.8 Will traders be allowed for registration under MSMEs?
Traders cannot be registered under MSME, as of now.
Q.9 What is the last date for entities without GSTIN and PAN, who have UDYAM Registration to take PAN and GSTIN registration on self-declaration basis?
For these entities, the last date for PAN and GSTIN registration is March 31, 2021 and they will be subject to suspension if they don’t apply for GSTIN and PAN registration and fail to update it on self-declaration basis on UDYAM registration portal login before March 31, 2021.
Q.10 Is it possible to do multiple UDYAM registrations on the same PAN?
No, a single PAN is not sufficient for multiple UDYAM registrations.
Q.11 Can I add a new branch or plant in an already registered business with UDYAM?
Yes, you can update UDYAM registration to add a new branch or new plant to your business. With the UDYAM registration number, a business can update its details online on self-declaration basis on the portal.
Q.12 What to do if the Turnover field is not automatically filled in the UDYAM registration form while doing UDYAM registration?
Information regarding the turnover is linked to GSTIN No. for an enterprise and GST return filed last year. While submitting the form, the boxes are not filled automatically. This way, the turnover will be checked at backend once you submit the application. In addition, application is filed on self-declaration basis if applicant hasn’t filed any GST return. He can fill details and file the application with GST details on or before April 31, 2021.
Q.13 Can I take multiple UAMs for UDYAM on the basis of one Aadhar in the earlier registration process?
According to the new UDYAM registration process, you cannot generate many UDYAM registrations with one Aadhar.
Q.14 How to change the UDYAM which has been taken already?
You can go to UDYAM registration gov in and update the information online on self-declaration basis with UDYAM registration number.
Q.15 What is the value of Equipment or Plant and Machinery for registration?
The value of the invoice of machinery, plant or equipment is mentioned for the registration purposes, according to the notification released on June, 26, 2020. As on March 31 of the relevant year, UDYAM portal has been recording the reduced cost and UDYAM registration certificate is generated on the basis of the same entities.
Hence, a clarification has been issued by the ministry dated August 6, 2020. The Written Down Value (WDV) shall be considered the value of Equipments or Plant and Machinery at the end of Financial Year as given the ITR filed last year and not the original price or acquisition cost. Ministry has also asked RBI to review the circular on July 2, 2020 with above clarification with regards to the calculation of Equipments or Plant and Machinery.
Q.16 How many NIC codes can be added to one UDYAM registration?
UDYAM registration allows only 10 NIC codes at once.
Q.17 Have prohibited NIC codes been available for UDYAM Registration?
NIC codes which have been prohibited already are still prohibited for registration. In this regard, the Office Memorandum dtd. 27/06/2017 has been amended by the Ministry of MSME and replaced “Udyog Aadhar Memorandum” term with “UDYAM Certificate” in the notification on July 17, 2020. Here’s the link to official notification – https://UDYAMregistration.gov.in/docs/OM_UAN_17_7_2020.pdf
Q.18 Has the portal started operating for current MSME registrations with UAM or EM-II?
No, this service has not been started yet at the UDYAM portal.
Q.19 Is the old UAM portal still working?
Yes, a new tab Udyog Aadhar has been added on the UDYAM registration portal which takes you to the old Udyog Aadhar Memorandum portal. However, the old portal is open only for some specific purposes and 4 new tabs have been added for redirection –
- Print Application
- Update Udyog Aadhaar
- Verify Udyog Aadhaar
- Print Certificate
But, you can access this service only until March 31, 2021.
Q.20 Can you update the old UAM?
Yes, you can update the old UAM with the new tab on UDYAM registration portal but it is open only until March 31, 2021.
Q.21 Can wholly-owned foreign company subsidiaries, MNC or Foreign subsidiaries be registered as MSME in India?
Yes, MSME registration is open to all businesses which have a place in India and are registered in India. MSME registration has no restriction from a wholly-owned subsidiary of a foreign subsidiary, foreign company, or MNC.
Q.22 Can we add new plants and/or NIC codes in old UAM?
Yes, NIC codes can be removed or added and Plants can be added or deleted according to your needs. You will see the changes in old UAM accordingly. But you can do it only until March 31, 2021.
Disclaimer – The contents in the above article are intended, but not guaranteed to be precise, up-to-date and complete. This post is only for informational purposes.