The Ministry of Micro, Small and Medium Enterprises (MSME), on Thursday, extended the validity of the Udyog Aadhaar Memorandum (UAM) and Entrepreneurs Memorandum Part-II (EM-II) from 31 March 2021 to 31 December 2021. The Ministry of MSME had issued the UAM and EM-II registrations to the MSMEs registered under them.
The UAM and EM-II holders could avail of incentives and benefits provided under various schemes, including priority sector lending benefits provided to the MSMEs. However, the Ministry of MSME issued a notification on 26 June 2020 and changed the definition of the MSMEs. In this notification, the Ministry of MSME introduced a new process for the MSME registration, i.e. Udyam registration.
The government launched the new registration process for the MSMEs on 1 July 2020. The notification issued on 26 June 2020 stated that the existing MSME registrations, i.e. UAM or EM-II, shall be invalid after 31 March 2021. Therefore, the existing holders of the UAM and EM-II had to migrate their registrations to the new Udyam registration on the newly launched Udyam registration portal by 31 March 2021 for receiving the incentives and benefits provided to the MSMEs.
On Thursday, the Ministry of MSME issued an amendment to the 26 June 2020 notification and extended the validity of the UAM and EM-II till 31 December 2021. Thus, the UAM and EM-II holders can now migrate to the Udyam registration and continue to receive the benefits provided to the MSMEs.
The Ministry of MSME extended the validity of the UAM and EM-II after considering the hardships faced by the MSME sector due to the current COVID-19 situation. The Ministry also received many representations from different MSME associations, government departments and financial institutions dealing with the interest of the MSMEs, which led to the decision for extending the validity of the UAM and EM-II.
The MSMEs with the UAM and EM-II registrations do not have to re-apply for obtaining the Udyam registration. They can migrate/re-register to the Udyam registration by visiting the Udyam registration portal. The re-registration/migration of the UAM and EM-II to Udyam registration does not require any documents and is free of cost.
The migration to the Udyam registration requires only the Udyog Aadhaar Number or EM-II registration number, PAN and Aadhaar number. The migration process is entirely online. The Udyam registration portal has facilitated the classification and registration of 33,16,210 enterprises as of 17 June 2021.
However, the existing UAM and EM-II holders must migrate to the new system of the Udyam registration by 31 December 2021. By migrating to the Udyam registration, the MSMEs currently having the UAM and EM-II registrations will obtain the benefits of the government schemes, thereby helping them cope with the pandemic situation in India.
For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in
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