Shubham Agrawal (Company Secretary and Lawyer) 10 July 2021
Are we required to update the MSME Certificate in case our turnover has crossed the limit of 5 crores last year. Currently we are registered under Micro Enterprise as our turnover at time of registration was less than 5 crores however, it has crossed 5 cores in 2020-21, so do we need to amend our MSME certificate?
BHAVYA SOM GARG 19 July 2021
First of all, congratulations on your enterprise earning high turnover. Secondly, as per the facts laid by you and the latest government notification in this regard, I wish to tell you that you will have to update your registration certificate.
As per the government notification S.O. 1702(E) as applicable from 01.07.2020, the ceiling for investment and turnover has been updated in case of MSMEs. As per the updated classification, a micro enterprise is the one in which the investment is less than 1 crore rupees and the turnover is less than 5 crore rupees, while a medium enterprise is the one in which the investment is less than 10 crore rupees and the turnover is less than 50 crore rupees.
So, as per the facts laid down by you, the enterprise is now a small enterprise instead of a micro one and therefore, you should get the certificate updated for a small enterprise. The said registration can be made online by the UDYAM platform for the registration of the MSMEs.
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