In this article, we will try to learn the steps to cancel Udyam Registration. The Government of India has brought to light the importance of the MSME Sector in its Annual Union Budget.
The Indian economy relies heavily on micro, small, and medium enterprises (MSME). MSMEs make a significant contribution in three main areas: business development, job growth, and creativity. In spite of all its heterogeneity, it faces a shared set of issues like limitations in physical facilities, availability of loans, lack of standardization, innovation strategies, market connections, etc.
The government has realised and stated several times in the past years that we as a country need a strong entrepreneurship culture backed by a strong regulatory environment to attain the objective of a five-trillion-dollar economy. The Union government has implemented substantial reforms to establish a business-friendly climate in the recent few years. It is the new digital method brought to ease the registration process of the MSME entities to make the old registration process a lot more simple and easy to execute. The Ministry of Micro, Small, and Medium Enterprises took the initiative to launch the MSME Udyam Registration Portal.
Udyam Registration is a system introduced by the government of India, where the micro, small, and medium enterprises can register their business and get certified. The primary motive of the government is to promote and enhance this MSME Sector by giving them special business allowances, lower interest rates on loans, tax rebates, etc. It consists of a government signature, an accreditation certificate, and a specific number. This becomes extremely important for those who want to certify that their small, or medium enterprise or organisation is legal and operational.
Prior to the establishment of Udyam registration, the procedure for doing so was very stagnant and complicated, as it required a huge amount of paperwork. The introduction of Udyam registration is turning out to be a boon. The easy and quick way to register has benefited the situation of the micro, small, and medium enterprises.
Reasons for Cancelling Udyam Registration
The central government establishes various criteria and qualifying requirements that determine whether a company falls under MSME in order to aid entrepreneurs who are truly in need. Therefore, when a company that is primarily a part of the micro, small, and medium enterprises sector no longer fulfils the criteria to be a part of that sector, it’s critical to terminate all previous MSME Udyam registrations. There are two reasons that can be used to explain the registration.
- Firstly, one of the most common reasons for enterprises to cancel their MSME registration is the change in the format of the business in a certain industry
- Secondly, the reason behind the decision to cancel Udyam registration is the extent of the revenue or turnover of an organisation which signifies whether that company is actually a part of the MSME Sector. If the company’s turnover exceeds what is presumed of a micro, small, and medium-firm, the business owner must seek to have the MSME registration revoked.
What are the Must-Haves for Udyam Cancellation?
The first thing that you need to cancel your registration is your 19-digit URM number received while registering in the Udyam portal: https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm. The second thing that is required for cancelling your Udyam registration is the mobile number and the email address you used while registering for the portal.
What are the Steps to Cancel Udyam Registration Online?
- The first step is to open the official Udyam portal
- The second step includes filling out the cancellation form, where you have to put your Udyam registration number and the registered email address
- In the third step, you have to give your registered mobile number, where an OTP will be sent for verification. You also have the option to receive the OTP at your given email address
- Now, you have to make the payment for the application
- The fifth and final step is when you will receive the cancellation message within 1-2 hours.
Can You Get a Refund After Cancelling Your Registration?
A refund request can be sent to help@udyamregistration.org.in and the refund request has to be initiated within 10 days of filing the online application. The authorities in charge process the refund usually within 10-15 days of receiving the information regarding the refund like the bank details, etc. However, a request for a refund can be made only within 10 days of application, and after that, neither can the application be cancelled nor can a refund be issued.
Final Words
MSME Udyam certificate is of utmost importance for small, micro, and medium enterprises. It is designed to benefit these businesses, and if you do not fall under the required criteria, you must apply for your Udyam registration cancellation as soon as possible.
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