MSMEs have a significant effect on the establishment of emerging enterprises, employment opportunities, and the economy as a whole. The variety of its components maintains an array of challenges that include physical facility limits, financial issues, an absence of standardisation, a shortage of innovative strategies, market links, and so on. During the past few years, the government has recognised and stressed multiple times that to enable our country to accomplish the goal of a $5 trillion economy, we must establish a robust entrepreneurial culture backed up by a strict regulatory structure. The Union government has carried out significant changes in the past few years to create a friendly environment for businesses.
The Indian government has developed a procedure entitled Udyam Registration Certificate, through which micro, small, and medium-sized companies can register and obtain udyam certification for their business operations. The primary objective of the government is to expand and improve the MSME sector with the offering of particular business authorizations, lesser loan interest rates, tax reductions, and various other incentives. It includes the government stamp, recognition certification, and a unique number. This is essential to those seeking evidence that their small or medium-sized business is legal and operational.
Regarding this, it is necessary to cancel any existing MSME Udyam registration certificate whenever a company that mainly serves this segment of the economy no longer satisfies the requirements to be a part of it. In this article, we will explain briefly how to cancel Udyam registration.
Reasons for Cancelling Udyam Registration
To assist business owners who face an actual need, the central government establishes an array of requirements and norms that determine whether a company qualifies as an MSME. Consequently, it is extremely important to cancel all previous MSME Udyam registrations whenever a business that primarily serves the micro, small, and medium businesses sector no longer qualifies the criteria required to remain a part of that particular sector. The requirement for registration might be determined by one of two factors.
- Firstly, one of the many common reasons businesses cancel their MSME registration is a change in how the company operates within a specific industry.
- The amount of an organisation’s revenue or turnover, which reveals whether the company is a part of the MSME Sector, is the second factor that ultimately led to the decision to cancel Udyam registration. The business owner must apply for their MSME registration to be cancelled whenever the company’s annual revenue exceeds the amount considered suitable for a micro, small, and medium-sized firm.
Documents Required to Cancel Udyam Registration
The process is extremely simple to cancel your registration for Udyam. The documentation that is required is listed below:
- Udyam’s registration number (URN)
- While registering with Udyam, one must give their registered mobile number and email address, these details are required.
Udyam Registration Cancellation Process
- The first and foremost step is to visit the official Udyam website.
- In the following step, you have to fill out the cancellation form and submit your Udyam registration number as well as your registered email address.
- The next step allows you to enter your registered mobile number, which will receive a text message with an OTP for verification. The one-time password can also be sent to the email address you provided.
- At this point, you will need to make the payment for the application.
- The Udyam cancellation time is typically around 1-2 hours. After completion, a cancellation message will be sent to the registered email address.
Can You Get a Refund After Cancelling Your Udyam Registration?
If you need a refund after cancelling your Udyam Registration, you must request it within 10 days of submitting your online application. To initiate the refund process, send an email to email@example.com. Once the necessary information, including bank account details, is received, the appropriate authorities will begin processing the refund.
It’s important to note that the earliest date you can request a refund is within the 10 days following your application submission. After this period, neither the application nor the refund request will be eligible.
The MSME Udyam certificate is essential for small, micro, and medium-sized organizations. If you find yourself needing to cancel your Udyam registration due to non-compliance with the required criteria, it’s important to act promptly. The process for Udyam Registration cancellation is a straightforward one, provided that all the necessary information and documentation are in order. The Udyam scheme is designed to support these businesses, so timely action is advisable. To ensure a smooth and hassle-free cancellation process, stick to the official guidelines and consult with relevant professionals. At Taxxinn, we also help with new udyam registration when required, making it a valuable resource for businesses.