Extension of validity of Udyog Aadhar and Entrepreneurs Memorandum (EM)

The Update from RBI on validity of old MSME certificates (Udyog Aadhar and Entrepreneurs Memorandum):

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Notification Date

19/05/2022

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Subject

Extension of validity of Udyog Aadhar and Entrepreneurs Memorandum

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Applicability

All entities covered under the definition of MSME

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Brief description

This has been clarified that the existing Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAM) of the MSMEs obtained till June 30, 2020 shall remain valid till June 30, 2022 for classification as MSMEs

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Impact of the notification

All eligible enterprises covered under the new definition of MSME were required to register online and obtain ‘Udyam Registration Certificate’  on or before 31st March 2022 and the validity of old MSME certificates (UAM or EM) was expiring from 31st March 2022.

Vide this notification, the validity of old MSME certificates has been extended till 30th June 2022. The enterprises which have not obtained Udyam Registration Certificate, may use the old UAM or EM certificates for classification under MSME upto 30th June 2022.

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Additional information

How to determine the value of investment in plant and machinery for classification under MSME?

RBI vide notification dated 13th July 2017 has clarified that for ascertaining the investment in plant and machinery for classification of an enterprises as Micro, Small and Medium, the following documents could be relied upon:

(i) A copy of the invoice of the purchase of plant and machinery; or

(ii) Gross block for investment in plant and machinery as shown in the audited accounts; or

(iii) A certificate issued by a Chartered Accountant regarding purchase price of plant and machinery.

Further, the Ministry has clarified that for the investment in plant and machinery for the purpose of classification of an enterprise as Micro, Small or Medium, the purchase value of the plant and machinery is to be reckoned and not the book value (purchase value minus depreciation).

Complete circular attached – 1st

Complete circular attached – 1st

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