Paragraph 7 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraph 7 of S.O. 2119(E) was the transition rule. Enterprises already registered under EM-Part-II or UAM had to register again on the Udyam Registration portal on or after 1 July 2020, all enterprises registered till 30 June 2020 were re-classified under the new notification, and their old registrations stayed valid only up to 31 March 2021.
7(1): enterprises registered under EM-Part-II or UAM register again on the Udyam portal on or after 1 July 2020. 7(2): all enterprises registered till 30 June 2020 are re-classified under the notification. 7(3): their earlier registrations continue to be valid only up to 31 March 2021. 7(4): an enterprise registered with any other organisation under the Ministry must register under Udyam.
The four sub-paragraphs at a glance
| Sub-para | Rule | Date or period |
|---|---|---|
| 7(1) | All existing enterprises registered under EM-Part-II or UAM "shall register again" | On or after 1 July 2020 |
| 7(2) | All enterprises registered till 30 June 2020 "shall be re-classified in accordance with this notification" | Registrations till 30 June 2020 |
| 7(3) | Existing enterprises registered prior to 30 June 2020 "shall continue to be valid only for a period up to the 31st day of March, 2021" | Up to 31 March 2021 |
| 7(4) | An enterprise registered with any other organisation under the Ministry "shall register itself under Udyam Registration" | No date stated |
Why the paragraph was needed
S.O. 2119(E) replaced earlier notifications and moved registration online. Before it, enterprises filed a memorandum under section 8 of the Act in the forms then in use. The notification gives two names for the earlier systems: EM-Part-II and UAM. Paragraph 7 says what had to happen to those enterprises when the new system began on 1 July 2020. Our posts on section 8(1) and section 8(2) to (5) cover the memorandum under the Act. For how registration works now, see Udyam registration.
Paragraph 7(1): register again
"All existing enterprises registered under EM-Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020." Three points:
- Two named registrations. The text names only EM-Part-II and UAM. It does not expand the abbreviations, and this article uses them as written.
- A fresh registration. The enterprise "shall register again". It is a new filing on the Udyam portal under paragraph 2, and the rules of paragraph 6 apply.
- Start date only. The paragraph sets "on or after" 1 July 2020 and sets no end date of its own; the end date comes from 7(3).
Paragraph 7(2): re-classification
"All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification." Re-classification means applying the notification's criteria, in particular paragraph 1 and the composite test in paragraph 3, instead of the earlier criteria. The text says the re-classification applies to all enterprises registered till that date. It does not say how the re-classification was carried out on the portal, and this article does not guess.
Paragraph 7(3): validity up to 31 March 2021
"The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021."
| Date | Position |
|---|---|
| Before 1 July 2020 | Earlier registration governs |
| 1 July 2020 to 31 March 2021 | Earlier registration continues to be valid; enterprise is to register again under 7(1) |
| After 31 March 2021 | The earlier registration is not stated to be valid |
The notification says the earlier registrations continue "only" up to 31 March 2021. It does not say what happens to an enterprise that did not register again by then, nor does it say what the consequences are for benefits, and this article does not add any. A related note: in the text, the cut-off date in 7(2) is 30 June 2020 and in 7(3) it is "prior to 30th June, 2020"; they are as written in the notification, and this article does not try to reconcile the two expressions.
Today, in 2026, this paragraph matters mainly for enterprises whose old certificate was never replaced, and for reading old records. If you hold an old certificate or number from that system, check whether there is a Udyam Registration in your name. Our posts on Udyam vs the old MSME certificate and on recovering an Udyam number may help.
Paragraph 7(4): other Ministry registrations
"An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration." The text does not name those organisations. It says only that registration under Udyam is required. It does not give a date, so 7(3)'s 31 March 2021 is not stated to apply.
What paragraph 7 does not say
- It does not expand EM-Part-II or UAM.
- It does not say what happens to an enterprise that did not register again by 31 March 2021.
- It does not name the other organisations under the Ministry referred to in 7(4).
- It does not describe portal steps for re-registration.
Practical examples
Example 1: a UAM enterprise in 2020. An enterprise registered under UAM in 2019 registered again on the Udyam portal in August 2020. Paragraph 7(1) asked for that, and it was re-classified under the notification's criteria under 7(2).
Example 2: an enterprise that did nothing. An enterprise had an EM-Part-II registration and never registered on Udyam. Under 7(3) its earlier registration was valid only up to 31 March 2021. The notification does not list consequences; check the position before relying on the old certificate.
Example 3: a re-classification. An enterprise registered before 30 June 2020 is checked against the notification's criteria. If its figures fall within a different category from its old certificate, the new category applies under 7(2); the current ceilings come from S.O. 1364(E).
Need help moving from an old registration to Udyam?
If you still carry an old MSME registration or are unsure whether a Udyam Registration exists in your name, it is worth sorting out now. Our Udyam registration team can help you check and file correctly.
Key takeaways
- EM-Part-II and UAM enterprises were to register again on the Udyam portal on or after 1 July 2020 (para 7(1)).
- Enterprises registered till 30 June 2020 were re-classified under the notification (para 7(2)).
- Earlier registrations were valid only up to 31 March 2021 (para 7(3)).
- Enterprises registered with other organisations under the Ministry must register under Udyam (para 7(4)).
Read next
- Paragraph 6 of the Udyam Notification (S.O. 2119(E)): One registration and penalty for misrepresentation
- Paragraph 8 of the Udyam Notification (S.O. 2119(E)): Updation of information and suspension
- MSME Certificate vs Udyam Certificate: What Changed
- MSME Udyam Registration Renewal: Process and Validity
Disclaimer: Based on the Micro, Small and Medium Enterprises Development Act, 2006 (official text, not amended by the Jan Vishwas Acts of 2023 or 2026) and the Udyam notifications S.O. 2119(E) of 26 June 2020 and S.O. 1364(E) of 21 March 2025, read with later developments noted in the article, as on 30 September 2026. Notifications, rules and the Udyam portal change; verify the current position before acting.