The government on Friday notified new norms to allow online registration of new enterprises based on self-declaration, doing away the requirement to upload documents and certificates, from July 1.
Officials said that this has been made possible with the integration of the Udyam Registration process with the Systems of Income Tax and GST and the details filled in can be verified on the basis of PAN number or GSTIN details.
"An enterprise can be registered just on the basis of Aadhaar number. Other details can be given on self-declaration basis without any requirement of uploading or submitting any paper - thus it is a paperless exercise in true sense," an official statement said.
The notification also says that hereafter, an MSME will be known as Udyam, as this is more closer to the word enterprise. Accordingly, the registration process will be known Udyam Registration.
As declared earlier, investment in 'Plant and Machinery or Equipment' and 'Turnover' are the basic criteria for classification of MSMEs now.
The notification clarifies that exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether Micro, Small or Medium.
"The process of registration can be done online through the portal which will be made known to the public before 1 July, 2020, the date from which this new arrangement is going to be effective," the statement said.
The Ministry of Micro, Small and Medium Enterprises (MSME) had on 1 June, 2020 notified new criteria for classification of MSMEs based on Investment and Turnover, to be effective from 1 July, 2020.
Based on the same, the MSME Ministry issued a detailed notification on Friday which gives the detailed criteria for classification of MSMEs and the procedure for registration and the arrangements made by the ministry for facilitation in this process.
The MSME Ministry has also established a strong facilitation mechanism for MSMEs in the form of Single Window Systems at the district level and regional level.
"It will help those entrepreneurs who are not able to file the Udyam Registration for any reason. At the district level, the District Industry Centres have been made responsible for facilitating the entrepreneurs."
Similarly, Ministry's recent initiative of Champions Control Rooms across the country have been made legally responsible for facilitating such Entrepreneurs in registration and even thereafter," the statement said.
Those people who do not have a valid Aadhaar Number can approach the Single Window Systems for facilitation alongwith Aadhaar enrollment request or identity, bank photo passbook, voter ID card, passport or driving license and the Single Window Systems will facilitate them in registering after getting the adhaar number.
Minister of MSME Nitin Gadkari said the new system of classification, registration and Facilitation of MSMEs will be an extremely simple and yet fast-track, seamless and globally benchmarked process and a revolutionary step towards Ease of Doing Business.