CA Pooja Madhan

In an initiative under Atmanirbhar Bharat, the Ministry of Micro, Small and Medium Enterprises (MSME) vide Notification dated 26 th June, 2020, notifies the new definition of MSME and new registration process which will be called Udyam Registration.


For the purpose of Udyam Registration the Ministry has launched Udyam Registration Portal which has become effective w.e.f 1 st July, 2020, the link of the portal is https://udyogaadhaar.gov.in/


The new definition of the MSMEs (for Manufacturing as well as Service Industry) is as mentioned below;

CriteriaMicro EnterprisesSmall EnterprisesMedium Enterprises
InvestmentLess than Rs. 1 CroreLess than Rs. 10 CroreLess than Rs. 50 Crore
Annual TurnoverLess than Rs. 5 CroreLess than Rs. 50 CroreLess than Rs. 250 Crore

Some features of the new Udyam Registration are as mentioned below;

  1. Aadhaar number is mandatory for Udyam Registration.
  2. The process of Udyam Registration is fully paperless and online.
  3. GSTIN and PAN are mandatory in case of Companies, LLPs, Cooperative Societies, Societies and Trusts.
  4. In case of Proprietorships, Udyam Registration can be granted on the basis of self declaration with a precondition to update the PAN and GSTIN on the Udyam Portal before March, 2020.
  5. All GSTINs granted under the same PAN will be considered as one enterprise.
  6. On the successful registration of the enterprise on Udyam Portal a permanent identity number known as “Udyam Registration Number” will be assigned and an e-certificate “Udyam Registration Certificate” will be issued.
  7. E-certificate will have a dynamic QR code from which the webpage of the portal and details of the enterprise can be accessed.
  8. Registration once granted will be valid for lifetime.
  9. All existing MSME Registered enterprises registered under EM-Part-II or UAM will be required to get themselves registered again on the Udyam Portal on or after 1st July, 2020 but before 31st March, 2021
  10. All the existing MSME registered enterprises will be re-classified following the new definition.