Clarification on existing MSME registrations: Udyog Aadhar and Entrepreneurs Memorandum

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Validity of Udyog Aadhar registration
validity of udyog aadhar

Ministry of MSME has issued clarification on validity of  existing MSME registrations/ Udyog Aadhar registrations (UAM) on 06th August 2020 vide office memorandum no No. 2/1(5)/2019- P&G/Policy (pt. IV). Important clarifications as per this office memorandum are as follows:

1. Validity of existing Udyog Aadhar and EM Part II (UAMs) as issued till 30th June, 2020
It is clarified and emphasized that all the existing EM Part II and UAMs obtained till 30.06.2020 shall remain valid till 3lst March 2021**. Same also notified vide  Para (3) of Clause 7 of the Notification No. S.O. 2119 (E) dated 26.6.2020.
**Ministry of Micro, Small and Medium Enterprises has issued an amendment to the original notification No. S.O. 2119 (E) dated 26.06.2020 vide 2347(E) dated 16.06.2021, extending the validity of EM Part-II and UAMs from 31.03.2021 to 31.12.2021.

2.Editing / updating of the existing registration details: 
It is clarified that the existing Udyog Aadhar (UAM) holders can edit or amend their details on the UAM portal done till 31.3.2021. Those enterprises that have not entered their Aadhaar or PAN number so far in the UAM portal are hereby advised to obtain" Udyam Registration Number" well before 3l.3.2021. 

3.Action to be taken before 31st March 2021 by Entrepreneurs: 
(i) Since the existing registrations as EM Part II and / or UAMs will not remain valid after 31st March, 2021 it is strongly recommended that their holders file fresh registration in the new Udyam Registration Portal. 
(ii) Attention is also drawn to Para (2) of Clause 7 of the above notification No. S.O. 2119 (E) dated 26.6.2020 which reads as under:
"All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification".
(iii) To make the re-classification proper and realistic, it is necessary that the latest details are entered by the MSMEs.
(iv) It is preferable that the entrepreneur files new registration in the Udyam Registration Portal. Therefore, all enterprises with EM Part II and/or UAMs are advised to register themselves on the Udyam Registration well before 31.03.2021 in the Udyam Registration portal.

4. Value of Plant and Machinery or Equipment; 
(i) There are clarifications sought by the entrepreneurs regarding valuation of plant and machinery or equipments on cost or purchase price while filing the Udyam Registration. 

(ii) Para 3 of clause 4 Notification No. S.O. 2119(E) dated 26.6.2020 reads as follows:
"The expression plant and machinery or equipment of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings)". 

(iii) It is clarified that online Form for Udyam Registration captures depreciated cost as on 31 st March each year of the relevant previous year. Therefore, the value of Plant arid Machinery or Equipments for all purposes of the Notification No. S.O. 2119(E) dated 26.6.2020 and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the Financial Year as defined in the Income Tax Act and not the cost of acquisition or original price, which was applicable in the context of the earlier classification criteria.


📌MSME Registration for traders Read here
📌**Government extend validity of existing Udyog Aadhar till 31/12/2021 Read here

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