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Legal Aspects and Compliance Related to Udyam Certificate (1)

Udyam Certificate is legally recognized for micro, small, and Medium Enterprises (MSMEs) in India, which is governed by MSMED Act, 2006.This certificate outlines the legal guidelines, eligibility, conditions, penalty for not complying, as well as the major advantages from registering. This presentation also discuss the leagal aspects and compliance to Udyam Certificate ana as well as the government's schemes and obligations that apply to MSMEs. Achieving compliance with the law will allow businesses to enjoy advantages in terms of financial gain as well as legal protection.

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Legal Aspects and Compliance Related to Udyam Certificate (1)

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  1. LEGAL ASPECTS AND COMPLIANCE RELATED TO UDYAM CERTIFICATE

  2. TABLE OF CONTENTS • Penalties for Non-Compliance • Key Legal Benefits of Udyam Registration • Common Legal Issues & Solutions • Government Schemes & Legal Obligations • Introduction • Legal Framework Governing Udyam Certificate • Eligibility Criteria for Udyam Registration

  3. INTRODUCTION • The Udyam Certificate is an official recognition for Micro, Small, and Medium Enterprises (MSMEs) in India. • Issued by the Ministry of MSME through an online registration process. • Provides financial benefits, legal protection, and access to government schemes.

  4. Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 The Companies Act, 2013 (Relevant for MSME compliance) LEGAL FRAMEWORK GOVERNING UDYAM CERTIFICATE GST & Taxation Laws applicable to MSMEs

  5. ELIGIBILITY CRITERIA FOR UDYAM REGISTRATION VISION • MSMEs classified based on investment in plant & machinery/equipment and annual turnover: • Micro Enterprise: Investment ≤ ₹1 crore & Turnover ≤ ₹5 crore • Small Enterprise: Investment ≤ ₹10 crore & Turnover ≤ ₹50 crore • Medium Enterprise: Investment ≤ ₹50 crore & Turnover ≤ ₹250 crore 01 Aadhaar, PAN, and GSTIN are mandatory for registration.Businesses can download the udyam certificate from the official MSME portal. 02

  6. KEY LEGAL BENEFITS OF UDYAM REGISTRATION Ensures faster settlement of delayed payments through MSME Samadhaan. Legal framework allows easier closure of business under MSME exit schemes. MSMEs registered under Udyam get preference in public procurement. Subsidies and support for patents, trademarks, and designs. MSMEs get relaxations under various labour laws and regulations.

  7. 01 False Information: Misrepresentation can lead to penalties under MSMED Act, 2006. PENALTIES FOR NON-COMPLIANCE 02 Failure to Maintain Records: Non-compliance with tax and audit regulations can lead to fines. 03 Fraudulent Use of Udyam Certificate: Can result in legal action and cancellation of registration.

  8. COMMON LEGAL ISSUES & SOLUTIONS Incorrect Classification: Update investment and turnover details annually Duplicate Registrations: Only one Udyam Registration per PAN is allowed. Cyber Fraud & Fake Udyam Certificates: Always verify details on the official MSME website.

  9. GOVERNMENT SCHEMES & LEGAL OBLIGATIONS PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLCSS) MSME COMPETITIVE LEAN MANUFACTURING SCHEME

  10. CONCLUSION Udyam registration provides legal protection, financial benefits, and growth opportunities. Ensure compliance with registration norms and legal guidelines to avoid penalties.

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