The Central 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, 2020.
This does away with the requirement of uploading certificates and documents. As per officials, the norm could be allowed as the Udyam registration process is well-integrated with the income tax and GST. Additionally, the details fed in can be checked upon using PAN and GSTIN details.
An official statement said that an enterprise can be registered just on the basis of Aadhaar number. Other details can be given on a self-declaration basis without any requirement of uploading or submitting any paper, thus it is a paperless exercise in true sense.
There is also an emphasis made that now on MSMEs will be referred to as Udyam, being closer in meaning to the word ‘enterprise’, and thereby the registration process will be called Udyam Registration.
“An enterprise having Udyam Registration Number shall update its information online in the Udyam Registration portal, including the details of the ITR and the GST Return for the previous financial year and such other additional information as may be required, on self- declaration basis,” the notification in respect of updating of information and transition period said.
For classifying an enterprise into an MSME, investment in plant and machinery or equipment as well as turnover is taken into account. Also, for computing the turnover whether the enterprise is small, medium, or micro, the exports of goods or services or both shall not be accounted for.
“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. As per the earlier clarification, MSMEs will be classified on the basis of investment and turnover from July 1, 2020.
“In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an inquiry for verification of the details of Udyam Registration submitted by the enterprise and thereafter forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government who after issuing a notice to the enterprise and after giving an opportunity to present its case and based on the findings, may amend the details or recommend to the Ministry of Micro, Small or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate,” the notification said.To Read the full text of the Notification CLICK HERE