BUSINESS ACTIVITIES NOT COVERED UNDER MSME FOR REGISTRATION
Activites (NIC codes) not covered under MSMED Act, 2006 for registration as "Udyam Registration Certificate), while earlier it was called Udyog Aaadhaar Memorandum (UAM).
All enterprises which are doing activities (NIC Code List) are eligible for MSME registration under Udyam.
But there are
some activities, which are clearly mentioned by the Ministry of MSME will not
be eligible for MSME registration. If any of the mentioned activity is being
run by any enterprise, then that enterprise will not be registered under any
category of MSME.
Below mentioned is the detailed list of activities excluded from MSME eligible activities.
As per office memorandum dated 17th July, 2020 regarding "Udyog Aadhaar Memorandum (UAM)" is replaced with "Udyam Registration Certificate" in the office memorandum dated 27th June 2017 issued by Ministry of Micro, Small & Medium Enterprises with immediate effect.
Hence as office memorandum issued on 27th June June 2017 applicable for UAM will now applicable for Udyam Registration Certificate.
As per office memorandum dated 27th June 2017 that
Sub Section 1 of Section 7 of Micro Small or Medium Enterprises Development Act, 2006 provides for classification of enterprises engaged in manufacturing or production of goods as well as enterprises engaged in providing or rendering of services as micro, small or medium based on investment in plant and machinery and equipment respectively.
Sub Section 1 of Section 8 provides that any person who intends to establish a micro or small or medium enterprise engaged in manufacture or production of goods or providing or rendering of services may at his discretion shall file a memorandum of micro, small or medium enterprises in accordance with the provisions of Act.
Subsequent notification no SO 85(E) dated 10th January, 2017 for
registration of Udyog Aadhaar Memorandum for Micro, Small or Medium
enterprises.
Subsequent notification no S.O. 2119 (E) dated 26th June, 2020 for classification of enterprises & Udyam Registration for Micro, Small or Medium enterprises.
In this context it is further clarified that the activities in Table 1 below would not be included in the manufacturing or providing services in accordance with Section 7 of the MSMED Act, 2006:-
Table 1
|
NIC Code |
Activity |
|
02 |
Forestry
and logging |
|
03 |
Fishing and
aquaculture |
|
45* |
Wholesale
and retail trade and repair of motor vehicles and motorcycles |
|
46* |
Wholesale
trade except of motor vehicles and motor cycles 47 |
|
47* |
Retail
Trade except of Motor Vehicles and motor cycles |
|
97 |
Activities
of household as employees for domestic personnel. |
|
98 |
Undifferentiated
goods and services producing activities of private households for own use |
|
99 |
Activities
of extraterritorial organization and bodies |
* As per Ministry of MSME's Office Memorandum dated 2nd July, 2021 has decided to include Retail and Wholesale trade as MSMEs for the limited purpose of Priority Sector Lending and they would be allowed to be registered on Udyam Registration Portal for the NIC Codes 45, 46 & 47 and activities mentioned as above.
The NIC 2 digit activity 01 – crop, animal production, hunting and related activities would also not be included as per Section 7 of the Act except for the sub-classes of activities as 5-digit level given in Table 2 below:
Table 2
|
NIC Code |
Activity |
|
01462 |
Production of
eggs |
|
01463 |
Operation of
poultry hatcheries |
|
01492 |
Bee-keeping and production
of honey and beeswax |
|
01493 |
Raising of silk
worms, production of silk worm cocoons |
|
01612 |
Operation of
agricultural irrigation equipment |
|
01620 |
Support
activities for animal production |
|
01631 |
Preparation of
crops of primary markets i.e. cleaning, trimming, grading disinfecting |
|
01632 |
Cotton ginning,
cleaning and bailing |
|
01633 |
Preparation of
tobacco leaves |
|
01639 |
Other
post-harvest crop activities, n.e.c |
|
01640 |
Seed processing
for propagation |
Activities mentioned in Table 2 above are covered for MSME registration.
Conclusion:-
It is concluded
from above that before going for Udyam registration for MSME check the activity
of enterprise. Whether its activity is covered under list of eligible activity
for MSME or excluded from the eligible activity by office memorandum mentioned
above.
If enterprise
activity comes under eligible list then only go for MSME registration under
Udyam.
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ARYA, COMPANY SECRETARY IN PRACTICE & STARTUP CONSULTANT. DUE CARE HAS BEEN
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good fcs up
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