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What is Professional Tax Registration ?
Profession tax is the tax levied and collected by the state governments in India and is a type of direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this Professional Tax. Different states have different rates and methods of collection. In India, profession tax is imposed every month. However, not all states impose this tax.
Id proof i.e. (Aadhar Card/Driving license/Passport/Voter Card)
Utility Bills (Electricity/ Telephone)
Registered Office documents
Other documents as per entity type
* (All documents in Pdf scanned. Image file in jpeg format)
* (All documents to be Self Attested and signed on each page)
Udyam Registration-MSMEs can register via self-declaration with no additional documents to avail many benefits
Collect information and documents
Creation of Login credentials on the online portal
Preparation of online application
Filing application for registration using credentials
Sign the Form
Reply to any queries/clarifications
Udyam (MSME) Registration Registration Certificate
Certain individuals are exempted from paying Professional tax under the Professional tax rules
Interest Subsidy on loans Avail government subsidy schemes Subsidies in tax, capital investment and power tariff
50% rebate on trademark filing fees
Hassle free opening of bank accounts
Enjoy credit guarantee fund scheme for MSME’s Excise exemption scheme
The Government of India introduced MSME or Micro, Small, and Medium Enterprises in agreement with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. These enterprises primarily engaged in the production, manufacturing, processing, or preservation of goods and commodities. Thereafter, a proposal was made to redefine MSMEs by the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018, to classify them as manufacturing or service-providing enterprises, based on their annual turnover. For the implementation of the MSME Development Act, 2006, the registration process for the MSMEs involved filing of two forms. These included Entrepreneurs Memorandum I (EM I) and Entrepreneurs Memorandum II (EM II). Where EM I was for the proposed or upcoming enterprises and discretionary in nature, EM II was required to be filed by the existing enterprises.
In order to promote ease of doing business and simplify the process of MSME registration further, the Ministry of MSME introduced the Udyog Aadhaar registration, now known as Udyam Registration.
Udyam Registration is basically an online registration process of the Ministry of MSME, where the MSMEs can register via self-declaration with no additional documents to be submitted for the same.
Further, the MSMEs are not required to pay any fees and cannot file more than one Udyam Registration Form with the same Aadhar Number
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely: --
(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Priority Sector Lending:
The Priority Sector Lending (PSL) guidelines are issued by Reserve Bank of India. RBI has issued guidelines on Priority Sector Lending vide its circular no RBI/FIDD/2020 Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020-21 dated September 04, 2020. Accordingly, the categories under priority sector are
(ii) Micro, Small and Medium Enterprises
(iii) Export Credit
(vi) Social Infrastructure
(vii) Renewable Energy
Therefore, MSME Sector falls under Priority Sector Lending. As per RBI, the definition of MSMEs will be as per Government of India (GoI), Gazette Notification S.O. 2119 (E) dated June 26, 2020 read with circular RBI/2020 FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 read with FIDD.MSME & NFS. BC. No.4 / 21 dated July 2, 2020, August 21, 2020 respectively on ‘Credit flow to Micro, Small and Medium Enterprises Sector’ and updated from time to time. Further, such MSMEs should be engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, in providing or rendering of any service or services.
All bank loans to MSMEs conforming to the RBI guidelines qualify for classification under priority sector lending.
Calculation of Investment in Plant & Machinery
1) The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
(2) In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
(3) 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).
(4) The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR.
(5) The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery
Calculation Of Turnover
(1) 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.
(2) Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
(3) The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory
Composite Criteria of Investment & Turnover for Classification
(1) A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.
(2) 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.
(3) All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise
Facilitation for Registration Process
Government has organised a full system of Facilitation for Registration Process
An enterprise for the purpose of this process will be known as Udyam and its Registration Process will be known as 'Udyam Registration'
A permanent registration number will be given after registration.
After completion of the process of registration, a certificate will be issued online.
This certificate will have a dynamic QR Code from which the web page on our Portal and details about the enterprise can be accessed.
There will be no need for renewal of Registration.
Our single window systems at Champions Control Rooms and at DICs will help you in the process.
Registration Process is totally free. No Costs or Fees are to be paid to anyone.
MSME registration process is fully online, free, paperless and based on self-declaration.
(1) The form for registration shall be as provided in the Udyam Registration portal.
(2) There will be no fee for filing Udyam Registration.
(3) Aadhaar number shall be required for Udyam Registration.
(4) The Aadhaar number shall be of the proprietor in the case of a proprietorship firm, of the managing partner in the case of a partnership firm and of a karta in the case of a Hindu Undivided Family (HUF).
(5) In case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number.
(6) In case an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on self-declaration basis.
(7) No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration. (8) Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act.
Retailers and Wholesalers have been facing the problem of not being able to register under the MSME Scheme as the same has not been permitted since the time MSME Registration was implemented. When MSME Registration was converted into Udyog Aadhar even then the registration of Retailers & Wholesalers was not permitted by the Ministry of MSME. Even though the NIC code list consisted of activities of Retailers & Wholesalers under the broad category of 45, 46 & 47 still their registration was not permitted and the same was mentioned in the Circular issued on 27th June 2017. Further, when Udyam Registration was implemented even then the Ministry of MSME did not allow Retailers and Wholesalers to obtain registration under the MSME scheme and avail benefits granted under it.
For long the Retailers & Wholesalers of India have been making continuous representations to the Ministry of MSME and requesting them to be allowed to obtain registration under the MSME Scheme to avail benefits granted under the scheme.
Finally, it seems that the Ministry of MSME under its new leadership has listened to the people of India and has issued the below circular.
The Ministry of Micro, Small & Medium Enterprises through its Circular No. 5/2(2)/2021-E/P & G/Policy (E-19025) dated 2nd July 2021, has allowed the activities of Retail and Wholesale Trading falling under the broad categories of 45, 46 & 47 of the NIC Codes to obtain Udyam Registration.
It is important to note that even though Retailers and Wholesalers have been allowed to obtain registration, the benefits granted under the MSME Scheme by the Ministry of MSME will not be passed on to these applicants by default. Currently, the benefits have been restricted to Priority Sector Lending only.
NIC Codes now approved are elaborated as follows:
•45 – Wholesale and retail trade and repair of motor vehicle and motorcycles
•4510 – Sale of Motor Vehicles
•4520 –Maintenance & Repair of Motor Vehicles
•4530 – Sale of Motor Vehicle Parts & Accessories
•4540 – Sale, Maintenance & Repair of Motorcycles and related parts and accessories
•46 – Wholesale trade except of motor vehicles and motor cycles
•4610 – Wholesale on a fee or contract basis
•4620 – Wholesale of agricultural raw materials and live animals
•4630 – Wholesale of food, beverages and tobacco
•4641 – Wholesale of household goods, textiles, clothing and footwear
•4649 – Wholesale of other household goods
•4651 – Wholesale of machinery, equipment and supplies, computers, computer peripheral equipment and software
•4652 – Wholesale of electronic and telecommunications equipment and parts
•4653 – Wholesale of agricultural machinery, equipment and supplies
•4659 – Wholesale of other machinery and equipment
•4661 - Wholesale of solid, liquid and gaseous fuels and related products
•4662 - Wholesale of metals and metal ores
•4663 - Wholesale of construction materials, hardware, plumbing and heating equipment and supplies
•4669 - Wholesale of waste and scrap and other products
•4690 - Non-specialized wholesale trade
•47 – Retail Trade except of Motor Vehicles and motor cycles
•4711 - Retail sale in non-specialized stores with food, beverages or tobacco predominating
•4719 - Other retail sale in non-specialized stores
•4721 - Retail sale of food, beverages and tobacco in specialized stores
•4722 - Retail sale of beverages in specialized stores
•4723 - Retail sale of tobacco products in specialized stores
•4730 - Retail sale of automotive fuel in specialized stores
•4741 - Retail sale of computers, peripheral units, software and telecommunications equipment in specialized stores
•4742 - Retail sale of audio and video equipment in specialized stores
•4751 - Retail sale of textiles in specialized stores
•4752 - Retail sale of hardware, paints and glass in specialized stores
•4753 - Retail sale of carpets, rugs, wall and floor coverings in specialized stores
•4759 - Retail sale of electrical household appliances, furniture, lighting equipment and other household articles in specialized stores
•4761 - Retail sale of books, newspapers and stationary in specialized stores
•4762 - Retail sale of music and video recordings in specialized stores
•4763 - Retail sale of sporting equipment in specialized stores
•4764 - Retail sale of games and toys in specialized stores
•4771 - Retail sale of clothing, footwear and leather articles in specialized stores
•4772 - Retail sale of pharmaceutical and medical goods, cosmetic and toilet articles in specialized stores
•4773 - Other retail sale of new goods in specialized stores
•4774 - Retail sale of second-hand goods
•4781 - Retail sale via stalls and markets of food, beverages and tobacco products
•4782 - Retail sale via stalls and markets of textiles, clothing and footwear
•4789 - Retail sale via stalls and markets of other goods
•4791 - Retail sale via mail order houses or via Internet
•4799 - Other retail sale not in stores, stalls or markets
Step 1: Create Login Id
Step 2: Filling up online form and Submission
Step 3: Print online MSME Certificate
Is MSME Registration Compulsory?
The scheme is voluntary in nature. However availing registration under MSME can be very advantageous due to enlisted benefits.
Requirement of Aadhar Card: For registration under the Udyog Aadhar scheme, Aadhar card is compulsory. In case an applicant is other than the proprietor, the Aadhar card of the partner and the director will be required.
How is investment in Plant and Machinery computed?
The investment in Plant and Machinery should be the original value irrespective of whether the Plant and Machinery are new or second hand. In respect of imported machinery, all costs associated with importation as specified in the Customs Act are to be included.
Is Provisional Registration available?
Yes, Provisional Registration can be done and has a validity of 5 years. It may be reapplied at the end of 5 years if business is still not operational. A permanent license can be obtained as the business turns operational.
Validity of the Certificate?
There is no expiry for UDYOG AADHAR CERTIFICATE, till the entity is operational and functioning properly.
Are collaterals required for availing bank loans?
MSME Borrowers can avail collateral free loans from banks and financial institutions.
Credit Rating is a quantified assessment of the creditworthiness of a borrower in terms of financial capabilities. Credit Rating for MSME is not compulsory, however it is in the interest of MSME to get credit rating done as it enhances value.
Certificate of Proof?
Keeping in mind the best interests of the Environment a Physical certificate is not issued. The online certificate is sent in the Email and is valid everywhere.
Documents Required :
Partnerships /Limited Liability Partnerships
Private Limited Companies