{"id":11787,"count":1,"description":"

A newly incorporated company may not have started sales or commercial operations yet. In such cases, founders often ask whether the company can still obtain Udyam Registration<\/strong> as an MSME.<\/p>\r\n

The answer depends on the company's actual status and whether it is genuinely intending to establish or operate a micro, small or medium enterprise<\/strong>.<\/p>\r\n

The official Udyam Registration portal states that a person intending to establish a micro, small or medium enterprise may register online. The process is paperless and based on self-declaration, subject to the applicable requirements. For companies and LLPs, the relevant organisation details, PAN and GSTIN information are used along with Aadhaar details of the authorised person.<\/p>\r\n\r\n

Can a New Company Register Before Starting Business?<\/h2>\r\n

A company does not necessarily need to wait until it has generated its first sale to assess Udyam registration eligibility<\/strong>.<\/p>\r\n

For example, a newly incorporated company may still be preparing its operations, arranging premises, developing products or setting up its business infrastructure.<\/p>\r\n

However, the company should genuinely intend to establish and operate an enterprise and should satisfy the applicable MSME classification requirements.<\/p>\r\n\r\n

What If the Company Is Completely Inactive?<\/h2>\r\n

This is different from a newly established business that is preparing to launch.<\/p>\r\n

Founders should distinguish between:<\/p>\r\n

A new enterprise preparing to start operations<\/strong><\/p>\r\n

and<\/p>\r\n

A company that has stopped or abandoned its business activities.<\/strong><\/p>\r\n

Company incorporation by itself does not automatically make a business an MSME or create Udyam status.<\/p>\r\n

If the company is completely inactive and no longer intends to carry on the proposed enterprise, it should not treat Udyam Registration as a substitute for addressing its actual legal and business status.<\/p>\r\n\r\n

What Should Founders Check?<\/h2>\r\n

Before applying for Udyam Registration<\/a>, consider:<\/p>\r\n\r\n