Ease of Doing Business for MSMEs: Aadhaar number-based registration on the Udyam portal is free, paperless, and based on self-declaration. PAN and GST details on investment and turnover of enterprises are sourced automatically from government databases by the portal.
95 per cent businesses registered on the portal currently are micro enterprises. (Image: pixabay)
Ease of Doing Business for MSMEs:
Digital platform for registration of businesses as micro, small and medium enterprises (MSMEs) Udyam portal is nearing the 1-crore mark in its two years of operations. Launched on July 1, 2020, to replace the Udyog Aadhaar Memorandum (UAM) registration framework, the Udyam portal currently has more than 96.53 lakh new and/or existing businesses registered as MSMEs, data from the portal showed. Registrations on the portal had crossed the 50,000-mark in nearly 15 months (September 2021) from the launch of the portal.
“Soon we’ll be crossing the 1 crore mark.
The Udyam database is going for integration with that of NCS, e-Shram and ASEEM portals. We are working towards bringing the tiniest of the micro enterprises into the formal framework,” MSME Secretary BB Swain had said at MSME Business Conclave organised by Financial Express Digital in June.
95 per cent (of total registrations) or 92,22,789 registrations on the portal currently are micro enterprises while 4 per cent or 3,92,772 registrations were small businesses and 0.39 per cent or 38,133 were medium enterprises.
Crossing 1 crore registrations ahead would assume significance when compared to UAM registrations. According to MSME Ministry’s FY21 annual report, it took nearly five years (from September 2015 to June 30 2020) for UAM to register 1.02 crore businesses. Importantly, in May this year, the government extended the validity of UAM registrations till June 30, 2022, from initially till March 31, 2021.
Aadhaar number-based registration on the Udyam portal is free, paperless, and based on self-declaration. PAN and GST details on investment and turnover of enterprises are sourced automatically from government databases by the portal. Under a single registration, MSMEs can add multiple activities including manufacturing or service or both unlike under the UAM framework that sought multiple registrations for multiple factories.