Offers
Rates
V-KYC
Debit Card Related
Credit Card Related
SA Welcome Kit 
Manage Mandate(s)
Get Mini Statement
categories
Bloggers
Blog collection
Press Release
Difference Between Udyog Aadhaar vs Udyam Aadhaar
Posted on Thursday, October 24th, 2024 | By IndusInd Bank
Micro, Small, and Medium Enterprises (MSMEs) are crucial for India’s economic growth. As of March 2024, more than 4 crore MSMEs are registered in the country, and the number is only expected to grow. These enterprises contribute significantly to the nation’s economy, employment, and GDP.
The government has introduced various initiatives to support these enterprises. Udyog Aadhaar and Udyam Registration are two such key initiatives.
Udyog Aadhaar registration was the original process for MSMEs. However, it has now been replaced by Udyam Registration. The new registration process will simplify things for MSMEs even further. If you are wondering what the differences between both are, here’s a simple guide to help you.
What is Udyog Aadhaar?
- The Ministry of Micro, Small, and Medium Enterprises introduced Udyog Aadhaar in 2015 as a simple registration process for MSMEs.
- With Udyog Aadhaar registration, MSMEs could access various benefits. This included government subsidies, schemes, and initiatives.
- The aim of Udyog Aadhaar registration was to ease the process of doing business. It did so by providing small enterprises with a unique 12-digit identification number. This number was similar to an Aadhaar number.
However, the government replaced Udyog Aadhaar with Udyam registration in 2020. Let’s learn about the latter now.
What is Udyam Registration?
- Udyam Registration was launched in July 2020 as the new and improved version of Udyog Aadhaar.
- It was introduced to make the registration process even simpler and more transparent for MSMEs.
- Udyam Registration is entirely paperless, online, and requires minimal documentation. Also, Udyam registration is free, meaning there are no fees associated with registering as an MSME.
- On registering with Udyam, MSMEs receive an MSME certificate as a soft copy via e-mail. It contains a QR code which will help verify the certificate and access details about the MSME.
Difference Between Udyog Aadhaar vs. Udyam Registration
The following table highlights the key differences between both:
| Parameter | Udyog Aadhaar | Udyam Registration |
| Registration Process | The Udyog Aadhaar registration process was simple. However, applicants had to submit a large amount of information. | Udyam Registration, on the other hand, requires only basic details like Aadhaar, since it is based on self-declaration. |
| Mode of Registration | Udyog Aadhaar registration could be carried out online or offline. | The Udyam registration process is completely online and paperless. |
| Documentation | Udyog Aadhaar registration required extensive documentation. | Only the Aadhaar number is required for Udyam registration. PAN & GST details on investment and turnover of enterprises are taken directly from government databases. |
| Validity and Re-registration | MSMEs registered with Udyog Aadhaar must re-register with Udyam registration. | Udyam registration is free and permanent. There is no need for renewal once issued. |
How to Migrate to Udyam Registration?
Here’s how you can migrate from Udyog Aadhaar to Udyam Registration
1. Visit the Udyam Registration Portal
Go to the official Udyam Registration website. Select the options from ‘For those already registered with UAM’ or ‘For those already registered with UAM through assisted filing’ as applicable to you.
2. Enter Your Udyog Aadhaar Number
Input your existing Udyog Aadhaar number. Select the option to receive OTP on your phone number or mail that is linked with the Udyog Aadhaar.
3. Enter OPT to Verify
Now, enter the OTP you would have received as an SMS or a mail.
4. Verify Your Details
Next, the system may prompt you to verify your personal and business details. Make sure the information is accurate and up-to-date.
5. Submit and Receive the MSME Certificate
Once all details are verified, submit your application. You will receive your new MSME certificate as a soft copy. This confirms your transition to Udyam Registration.
By registering with Udyam, MSMEs can enjoy official recognition, get better access to government schemes, apply for loans at lower rates, easily obtain licenses, and more.
Also Read: Evolving Current Account Trends & the Impact of Digital Advancements
Conclusion
With Udyam Registration, MSMEs can enjoy a faster registration process, ease of use, and not have to juggle with tonnes of paperwork.
For MSMEs that have yet to transition, migrating to Udyam Registration and receiving an MSME certificate is important to enjoy government benefits and support. With Udyam’s online, hassle-free registration process, it is easier than ever for MSMEs to secure their status and grow their operations.
Just like an MSME certificate can make it easier to run business operations, a well-designed current account is crucial for managing business finances. IndusInd Bank offers a range of current account options with extensive benefits. What’s more, we have minimal current account documentation. With our easy application process, you can focus on what matters most – running and scaling your business!
Open a current account with IndusInd Bank now!
Disclaimer:The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.
