Ease of Doing Business for MSMEs: Micro, small and medium enterprise (MSME) Ministry has additional prolonged the validity of Udyog Aadhaar Memorandum (UAM) registration until June 30, 2022, from March 31, 2022. MSMEs holding UAM license will now have time until June finish to modify to the Udyam registration and proceed benefitting from numerous authorities schemes and incentives together with precedence sector lending. Udyam portal was launched by the federal government in July 2020 to switch the UAM registration system and ease the net course of for companies to register as MSMEs. The newest UAM extension was introduced in a notification by the MSME Ministry.
The UAM registrations initially had validity until March 31, 2021, for MSMEs to get onto the brand new Udyam portal. The Reserve Bank of India (RBI) had additionally stated in 2020 that current Entrepreneur Memorandum II and/or UAM registrations obtained earlier than June 30, 2020, will stay legitimate until March 31, 2021. However, the federal government had prolonged it once more for a comparatively longer interval until December 2021.
Nonetheless, the extension given to UAM is not going to be round for too lengthy, a authorities official had advised Financial Express Online earlier on anonymity. “Maybe to streamline the system of registration, there was a need for this to benefit MSMEs who want to come onto the Udyam portal. But UAM and Udyam Registration cannot exist in parallel…Udyam Registration is advisory for micro and small enterprises as per the MSME Development Act, 2006 if they want to avail the benefit of government schemes offered to MSMEs. But for medium enterprises, it is mandatory,” the official had stated.
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According to the MSME Ministry’s 2020-21 annual report, 21,96,902 EM-II filings have been recorded throughout the 2007-2015 interval whereas from September 2015 until June 30 2020, there have been 1,02,32,451 (1.02 crore) UAM registrations. As of May 11, 85.15 lakh MSMEs had registered on the Udyam portal. However, knowledge on the share of current MSMEs migrating from UAM and new Udyam registrations wasn’t obtainable on the Udyam portal.
Source: www.financialexpress.com”