Definition of Micro Small or Medium Enterprise (MSME)

An enterprise shall be classified as a micro, small or medium enterprise based on the following –

Criteria

Micro-Enterprise

Small Enterprise

Medium Enterprise

The investment in plant and machinery or equipment

Less than Rs.1 Crore

Less than Rs.10 Crores

Less than Rs.50 Crores

Turnover

Less than Rs.5 Crore

Less than Rs.50 Crores

Less than Rs.250 Crores

 

Registration as MSME

Any person such as an individual, proprietor, firm, company, who intends to establish MSME may (not mandatory) file an application online at the Udyam registration portal. Upon registration, an enterprise will be assigned a permanent identity number known as ‘Udyam Registration Number” and an e-certificate will be issued.

We have already taken Registration under EM Part II. Should we register again?

Yes. All existing enterprises registered under EM Part II or UAM shall register again on the Udyam Registration Portal. The validity of the existing registration other than Udyam expires on 31st March 2021

Can we update the information in the portal?

Those who have already registered under Udyam can update the information online, including ITR, GST, etc.

How to classify the enterprise?

The above is a composite criterion. If an enterprise crosses the limit specified above for its present category in either of the two criteria, it will be placed in the next higher category.

Example – M/s ABC Enterprise has invested Rs.50 Lakhs in equipment and is having a turnover of Rs.7 Crores- It will be classified as “Small Enterprise” (as the turnover is more than the limit for Micro Enterprise)

How to compute the Investment Value?

The investment value and turnover are considered on an aggregate basis. All units with common GSTN and PAN shall be collectively treated as one enterprise and the turnover and investment figures for all such entities shall be considered together.  The investment details will be picked up from the Income Tax return filed during the previous year. If no ITR is available in case of new business, a self-declaration is considered.

What is included in Plant and Machinery?

The expression Plant and Machinery or equipment shall have the same meaning as given in Income Tax Rules. It shall include all tangible assets, excluding land and building, furniture & fittings, intangibles such as copyright, patent, Goodwill, etc.

The purchase value of an asset is considered excluding GST.

The purchase of second-hand machines is also considered for calculating the investment in assets.

What is excluded from the turnover?

Export of goods or services or both shall be excluded while calculating the turnover of any enterprise.

Whether Aadhar number is required for Udyam registration?

Yes. Aadhar number of the proprietor, managing partner, director, or authorized signatory is required.

Is there any penalty for a wrong declaration?

Yes. In case of first conviction – fine up to Rs.1,000. In case of second or subsequent conviction – fine up to Rs.10,000

Will the classification from Micro to Small (lower to higher) or reverse (higher to lower) happen automatically?

Yes, based on the information provided in ITR and GST, the classification of the enterprise will be updated. In such cases, a communication will be sent to the enterprise about the changes in the status.

What if online registration can’t be done?

Any person who is not able to file the Udyam Registration for any reason including for lack of Aadhaar number may approach The District Industries Centres (DIC) who act as Single Window Systems for Udyam Registration purposes.

What are the benefits of MSME registration?

The Governments, both Union and State, provide several incentive schemes for small enterprises. These benefits can only be availed if the business is registered as an MSME enterprise.

Those who intend to know more about the benefits and need assistance may contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Can OCI cardholders sell property in India without RBI permission?

The Overseas Citizen of India (OCI) Cardholder is a foreign national holding passport of a foreign country and is not a citizen of India, but falls under the definition as per The Citizenship Act, 1955 is entitled to certain benefits. The benefits are –

1. Grant of multiple entry lifelong visa for visiting India. However, for the following purposes, they shall obtain special permission or a Special permit from competent Authority (like Ministry of Home Affairs), Foreign Regional Registration Officer (FRRO), or the Indian Mission concerned, namely

a. to undertake research

b. to undertake any Missionary or Tabligh or Mountaineering or Journalistic activities

c. to undertake an internship in any foreign Diplomatic Missions or foreign Government organizations in India or to take up employment in any foreign Diplomatic Missions in India

d. to visit any place which falls within the Protected or Restricted or prohibited areas as notified by the Central Government or competent authority 

2. Exemption from registration with FRRO or Foreigners Registration Officer for any length of stay in India: However, any changes in the permanent address, the occupation should be intimated to FRRO / FRO via mail

3. Parity with Indian nationals in the matter of

a. tariffs in airfares in domestic sectors in India

b. entry fees to be charged for visiting national parks, wildlife sanctuaries, the national monuments, historical sites, and museums in India 

4. Parity with Non-Resident in the matter of

a. inter-country adoption of Indian children subject to the compliance of the procedure as laid down by the competent authority for such adoption.

b. appearing for the all-India entrance tests such as National Eligibility cum Entrance Test, Joint Entrance Examination (Mains), Joint Entrance Examination (Advanced), or such other tests to make them eligible for admission only against any Non-Resident Indian seat or any supernumerary seat (except Provided that the OCI cardholder shall not be eligible for admission against any seat reserved exclusively for Indian citizens)

c. purchase or sale of immovable properties other than agricultural land or a farm house or plantation property.

d. Pursuing the pro professions, namely doctors, advocates, architects, chartered accountants.

5. Parity with foreigners: In respect of all other economic, financial, and educational fields not specified above or notified by RBI under FEMA, OCI Cardholder shall be treated the same as a foreigner.

So, coming to the main question – whether OCI Cardholder can buy, hold, transfer or sell immovable property in India without prior approval of the Reserve Bank of India (RBI)?

Yes. OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions. As per FEMA, RBI frames the Directions / Regulations concerning the Acquisition and Transfer of immovable property in India.

As per the latest, updated on 11th April 2018, an NRI or an OCI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property/ farm house) in India.

Further, an NRI or an OCI can acquire by way of gift any immovable property (other than agricultural land/ plantation property/ farm house) in India from a person resident in India or from an NRI or an OCI who in any case is a relative as defined in section 2(77) of the Companies Act, 2013

Similarly, an NRI or an OCI can acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired the property in accordance with the provisions of the foreign exchange law in force at the time of acquisition or can also acquire any immovable property in India by way of inheritance from a person resident in India

The above Regulation also permits NRO/OCI to transfer or sell the immovable property without prior permission from RBI, to a person resident in India, NRO or OCI. They can repatriate the funds up to USD 1 million per year; provided in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

In case you need more information on this, please write to This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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