Ease of doing business for MSMEs: The Ministry of Micro, Small and Medium Enterprises (MSMEs) has further extended the validity of Udyog Aadhaar Memorandum (UAM) registration till June 30, 2022, from March 31, 2022. MSMEs holding a UAM license will now have time until the end of June to upgrade to Udyam registration and continue to benefit from various government programs and incentives, including priority sector loans. The Udyam portal was introduced by the government in July 2020 to replace the UAM registration system and facilitate the online process for businesses to register as MSMEs. The latest UAM extension was announced in a notification from the Ministry of MSMEs.
UAM registrations were initially valid until March 31, 2021 for MSMEs to access the new Udyam portal. The Reserve Bank of India (RBI) had also said in 2020 that existing Entrepreneur Memorandum II and/or UAM registrations obtained before June 30, 2020 would remain valid until March 31, 2021. However, the government again extended it for a relatively longer period until December 2021.
Nevertheless, the extension given to UAM will not last too long, a government official told Financial Express Online earlier on condition of anonymity. “Maybe in order to streamline the registration system, it was necessary to benefit MSMEs who want to access the Udyam portal. But UAM and Udyam registration cannot exist in parallel… Udyam registration is a advice for micro and small businesses under the MSME Development Act 2006 if they want to avail government programs available to MSMEs, but for medium-sized businesses, it is mandatory,” the official had said.
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According to the Ministry of MSMEs Annual Report 2020-21, 21,96,902 EM-II filings were recorded during the period 2007-2015, while from September 2015 to June 30, 2020 there were 1,02,32,451 (1.02 crore) UAM records. As of May 11, 85.15 lakh MSMEs have registered on the Udyam portal. However, data on the share of existing MSMEs migrating from UAM and new Udyam registrations were not available on the Udyam portal.