Udyam Registration: New MSME registration portal nears key milestone in little over a year since launch
Ease of Doing Business for MSMEs: Udyam Registration is essentially a self-declaration portal for entrepreneurs to register their enterprises with only the Aadhaar number. Moreover, the portal automatically pulls PAN and GST-linked details on investment in the business.
Ease of Doing Business for MSMEs: Zero-cost MSME registration portal Udyam Registration has neared 50 lakh registrations in 14 months since its launch on July 1, 2020. The first 25 lakh registrations were recorded on the new paperless portal in eight months (on March 5, 2021) while the following 25 lakh registrations are likely to be achieved in less
than eight months – by October. The available online data on registrations on the Udyam Registration portal by the MSME Ministry showed 49,01,586 MSMEs have already registered. This included new MSME registrations as well as Udyog Aadhaar Memorandum (UAM) holders who migrated to the new portal. According to the MSME Ministry?s 2020-21 annual report, between September 2015 and June 30, 2020, 1,02,32,451 (1.02 crore), MSME registrations were done on the e-filing system under Udyog Aadhar Memorandum (UAM) that was replaced by Udyam Registration.
Maximum registrations on the new portal were recorded from Maharashtra with 10.38 lakh units registered followed by 5.30 lakh registrations from Tamil Nadu, 4.22 lakh from Gujarat, 4.06 lakh from Rajasthan, 3.74 lakh from Uttar Pradesh, etc. Lakshadweep, Ladakh, Sikkim, Meghalaya, Arunachal Pradesh, were among the states with the least registration from their respective MSMEs, the official data showed.
Udyam Registration is essentially a self-declaration portal for entrepreneurs to register their enterprises with only the Aadhaar number. Moreover, the portal automatically pulls PAN and GST-linked details on investment in the business, according to Udyam Registration since it is integrated with Income Tax and GSTIN systems. Registered MSMEs are given a permanent registration number and a certificate post-registration. The certificate bears a QR Code from which the details about the enterprise can be accessed.
“The portal will help the government aggregate the data on the number of MSMEs in the country. Moreover, the government would also get data based on the product category, for instance, garment, electronics, gems, auto, etc., and the size of the enterprise along with the investment and turnover. Also, geographically, the government would get the data to understand the density of the MSMEs based on city, state, or district wise. Data is a big thing to harvest and today it is all about data,” Vishwa Nath, Managing Director, Nath Bros
Exim International and Co-chairman, Industry Affairs Committee, PHD Chamber of Commerce and Industry had told Financial Express Online.
MSMEs having Entrepreneur Memorandum – II or UAM registrations before June 30, 2020, and earlier valid till March 31, 2021, have been given an extension to switch to the new portal by this year-end. Last year, the Reserve Bank of India (RBI) had said that existing EMs II and/or UAMs of MSMEs obtained before June 30, 2020, will continue to remain valid till March 31, 2021, even as MSMEs had to register on the Udyam Registration portal before March this year.
According to the new MSME Minister Narayan Rane, the majority of registered MSMEs on the new portal are service enterprises. While 36 per cent were in the manufacturing sector,
63.8 per cent were in the service sector, the minister had said in the Rajya Sabha in August 2021.