The Simplicity of Executing Business for MSMEs
Approximately 50 lakh enrollments have been done on the Zero-cost MSME registration portal Udyam in just 14 months since its start on 1st July 2020. The first 25 lakh enrollment has been reported on the latest paperless portal in 8 months on 5th March 2021 and the mentioned 25 lakh enrollment seems to have been obtained in less than 8 months within October.
The information presented online on enrollment on the Udyam registration portal through the MSME Ministry displays 49,01,586 MSMEs have been enrolled previously. It consists of new MSME enrollment and Udyog Aadhaar Memorandum (UAM) holders who have been transformed to the new portal. As per the MSME Ministry 2020-21 yearly report in the middle of Sept 2015 and June 30, 2020, there were 1,02,32,451 (1.02 crore), MSME enrollments have been implemented on the e-filing system beneath Udyog Aadhar Memorandum (UAM) that was revised by Udyam Registration.
The highest enrollment upon the amended portal was reported from Maharashtra with 10.38 lakh units enrolled which is followed by 5.30 lakh enrollment from Tamil Nadu, 4.22 lakh from Gujarat, 4.06 lakh from Rajasthan, 3.74 lakh from Uttar Pradesh, and others. Lakshadweep, Ladakh, Sikkim, Meghalaya, Arunachal Pradesh, were among the states who have lower enrollment from their corresponding MSMEs, the information from the administration obtained.
Towards the entrepreneurs, the Udyam Registration is a self-declaration portal for the entrepreneurs to enroll their companies with the Aadhaar number. The portal itself fetches the PAN and GST associated information on investment in the business as per the Udyam enrollment since it is combined within the income tax and GSTIN system. A permanent registration number along with a certificate post-registration shall be provided to the registered MSMEs. The certificate holds the QR code from which the information about the company can be taken.
“The portal will help the government aggregate the data on the number of MSMEs in the country. Moreover, the government would also get data based on the product category, for instance, garment, electronics, gems, auto, etc., and the size of the enterprise along with the investment and turnover. Also, geographically, the government would get the data to understand the density of the MSMEs based on city, state, or district wise. Data is a big thing to harvest and today it is all about data, Vishwa Nath, MD, Nath Bros Exim International and Co-chairman, Industry Affairs Committee, Ph.D. Chamber of Commerce and Industry said.”
MSMEs who have entrepreneur memorandum -II or UAM enrollment prior to 30th June 2020 and before it is valid till 31st March 2021 is provided with the extension to switch to the latest portal at the end of the year. RBI in the previous year stated that the current EMs II along with UAMs of MSMEs (Micro and Small Enterprise) received prior to 30th June 2020 shall be valid till 31st March, also the MSMEs need to enroll in the Udyam registration portal prior to March in the current year.
As per the MSME minister Narayan Rane, the service companies are in the majority of the enrolled MSMEs upon the revised portal. However, there is 36% who are involved in the manufacturing sector, service sector are engaged with 63.8% commented by the minister in Rajya Sabha.
