The Ministry of Micro, Small and Medium Enterprises on 26th June 2020 has notified a new criteria for classifying the enterprises as Micro, Small and Medium Enterprises and has also specified the form and procedure for filing the memorandum with effect from the 1st day of July, 2020.
A “micro-enterprise” will be defined as a unit where the annual turnover does not exceed Rs 5 crores and the investment in plant and machinery or equipment does not exceed Rs. 1 crore and a company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as “small” and a company with investment up to Rs 50 crore and turnover under Rs 250 crore will be classified as “medium”.
Any person who intends to establish a micro, small or medium enterprise may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof and on registration, the enterprise will be assigned a permanent identity number to be known as ―Udyam Registration Number
If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
Exports of goods or services or both shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July 2020 and all enterprises registered till 30th June 2020, shall be re-classified in accordance with this notification and the existing enterprises registered prior to 30th June 2020, shall continue to be valid only for a period up to the 31st day of March 2021.
Click here to read the notification.
