Registration of MSMEs & Reclassification of a MSME

Para 7 of the Notification No S.O. 2119 (E) dated June 26, 2020 as amended by S.O. 2134(E) dated May 6, 2022 which specifies the certain criteria for classifying the enterprises as micro, small and medium enterprises and specifies the form and procedure for filing the memorandum also deals with registration of existing Enterprises.

Sub-Para (1) Existing Enterprises registered under EM-Part-II or UAM shall REGISTER AGAIN ON Udyam Registration Portal on or after 1st July, 2020.

Sub-Para (2) All enterprises registered till 30th June. 2020, shall be re-classified in accordance with this notification.

Sub-Para (3) The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 30th day of June, 2022.

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Sub-Para (4) An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

Para 8 of the Notification No S.O. 2119 (E) dated June 26, 2020 as amended by S.O. 4926(E) dated October 18, 2022 which specifies the certain criteria for classifying the enterprises as micro, small and medium enterprises and specifies the form and procedure for filing the memorandum also deals with graduation (from a lower to a higher category) or reverse-graduation (sliding down to lower category) of an enterprise under the MSME Act.

Sub-Para (5) In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category (micro or small or medium it was in before the re-classification, for a period of three years from the date of such upward change.

Sub-Para (6) In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not. the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.