MSME comes out with consolidated notification for classification and registration

Ministry of Micro, Small and Medium Enterprises (MSME) has come out with a consolidated notification in the form of guidelines for classification and registration of MSMEs. Earlier, the Ministry had published a Notification on 1st June with new criteria for classification of MSMEs based on Investment and Turnover.
 
Minister of MSME, Nitin Gadkari while releasing the new guidelines yesterday said that the new system of classification, registration and facilitation of MSMEs will be an extremely simple and a revolutionary step towards Ease of Doing Business. These steps and strategies also give a strong message that the Ministry is standing  behind the MSMEs which  are facing several challenges at this time.
 
This Notification which was issued yesterday provides  the detailed criteria for classification of MSMEs and the procedure for registration and the arrangements made by the Ministry for facilitation in this process. As per the notification, an MSME will be known as Udyam, as this is more closer to the word Enterprise and accordingly, the registration process will be known as Udyam Registration. It can be filled online based on self-declaration with no requirement to upload documents, papers, certificates or proof. An enterprise can be registered just on the basis of Aadhaar number and other details can be given on



self-declaration basis without any requirement of uploading or submitting any  papers.
 
The notification also  clarified 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 public before 1st of July, the date from which this new arrangement is going to be effective.
 
 The Ministry of MSME has established a strong facilitation mechanism for the MSMEs. This process is in the form of Single Window System 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.