Udyog Aadhaar registration was the original process for MSMEs registration but now, it has been replaced by Udyam Registration. The new registration process is easier than the previous one. Let’s understand the differences between Udyam Registration and Udyam Aadhaar in simple words:-
What is Udyog Aadhaar?
The Indian Government introduced udyog aadhaar in 2015 as a simple process to register MSME, after Udyog Aadhaar registration, MSMEs could have access various benefits like subsidies in government schemes. Rebate from central and state government. The objective to introduce Udyog Aadhaar was to make smother udyam registration process. It also provides MSME a unique 12 digit Number as Identity which is similar to Aadhaar number. However, in 2020, the government replaced Udyog Aadhaar to Udyam Registration.
What is Udyam Registration?
Udyam Registration launched in July 2020 as the improved version of Udyog Aadhaar. It aimed to make the registration process even simpler and clearer for MSMEs. Udyam Registration is completely online, paperless, and requires minimal documentation. The process is also free, means there is no fees required to register as an MSME. After registering with Udyam, MSMEs receive an MSME certificate in their resisted email. This certificate includes a QR code for verification and access to MSME details.
Difference between Udyog Aadhaar and Udyam Registration The following table highlights key differences between the two:
| Parameter | Udyog Aadhaar | Udyam Registration |
| Registration Process | The Udyog Aadhaar registration process was simple but required submitting a lot of information. | Udyam Registration only needs basic details like Aadhaar since it is based on self-declaration. |
| Mode of Registration | Udyog Aadhaar registration could be done online or offline | Udyam registration is entirely online and paperless. |
| Documentation | Udyog Aadhaar required extensive documentation. | Only the Aadhaar number is needed for Udyam registration. PAN and GST details on investment and turnover come directly from government databases. |
| Validity and Re-registration | MSMEs with Udyog Aadhaar must re-register with Udyam. | Udyam registration is free and permanent, with no need for renewal after issuance. |
Udyam Registration Eligibility
To qualify for Udyam Registration, your business must fall within the defined investment and turnover limits as per the revised MSME classification:
| Category | Investment (Plant and Machinery) | Annual Turnover |
|---|---|---|
| Micro | Up to ₹1 crore | Up to ₹5 crore |
| Small | Up to ₹10 crore | Up to ₹50 crore |
| Medium | Up to ₹50 crore | Up to ₹250 crore |
Udyam registration eligibility is open to proprietorships, partnerships, LLPs, private limited companies, and other legal entities engaged in manufacturing or service-related activities. However, trading businesses are currently excluded from this scheme.
Required Documents for Udyam Registration
The list of Udyam registration documents is quite minimal. Here’s what you typically need:
- Aadhaar number of the proprietor/partner/director
- PAN card of the business entity
- Business address and bank details
- Investment and turnover details (self-declared; no physical proof needed initially)
- GSTIN (if applicable)
The portal also automatically pulls PAN and GST-linked data from government databases to streamline verification.
Udyam Registration Process: Step-by-Step
The Udyam registration process is user-friendly, free of cost, and is done entirely online. Here is a step-by-step breakdown:
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Visit the Official Portal
Go to the Udyam Registration website https://www.udyogregister.in/Choose the Type of Entity
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Select the appropriate option: New Entrepreneurs who are not registered yet, or those already having udyog aadhar registration
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Enter Aadhaar Details
For proprietors, the Aadhaar number must match the business owner. For other types, Aadhaar of the authorized signatory is needed
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Verify with OTP
Your registered mobile number linked with Aadhaar will receive an OTP.
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Enter Business Details
Fill in your business name, type, activity, location, and PAN. Also mention the number of employees and investment & turnover figures.
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Submit and Get Your Certificate
After submission, you will receive a unique Udyam Registration Number and an e-certificate.
Udyam Certificate Download
Once the registration is complete, you can easily Udyam certificate download from the same portal. The certificate contains a QR code and your unique Udyam Registration Number (URN). This document can be used when applying for tenders, loans, and government schemes.
