Udyam Aadhaar Registration vs Udyog Aadhaar: What’s the Difference?

In India, MSMEs (Micro, Small, and Medium Enterprises) have access to several government benefits through registration programs. Udyam Aadhaar and Udyog Aadhaar are two such programs that allow businesses to register under the MSME category. While both provide access to similar benefits, there are some key differences between the two.

What is Udyog Aadhaar?

Udyog Aadhaar was the earlier registration system for MSMEs. Introduced in 2015, Udyog Aadhaar provided an easy registration process using the Aadhaar number of the business owner. It was an initiative by the Ministry of MSME to simplify the process of registering small businesses.

What is Udyam Aadhaar?

Udyam Aadhaar, launched in 2020, replaced the Udyog Aadhaar system. It is a more comprehensive registration process that helps MSMEs avail of various government schemes and incentives. Unlike Udyog Aadhaar, Udyam Aadhaar requires the use of a PAN card for businesses and facilitates more accurate categorization of businesses based on their investment and turnover.

Key Differences Between Udyam Aadhaar and Udyog Aadhaar

• Eligibility Criteria: Udyam Aadhaar considers the business’s turnover and investment, making the classification of businesses more accurate, whereas Udyog Aadhaar was based solely on the Aadhaar number of the business owner.
• Documents Required: Udyam Aadhaar requires the PAN card of the business, whereas Udyog Aadhaar only required the owner’s Aadhaar number.
• Registration Process: Udyam Aadhaar is a more detailed process, requiring verification of business details and classification, whereas Udyog Aadhaar was simpler but limited in its scope and benefits.
• Government Schemes: Udyam Aadhaar opens up access to more government schemes and financial incentives for businesses, which were not available under the older Udyog Aadhaar system.

Benefits of Udyam Aadhaar Registration

Both Udyam Aadhaar and Udyog Aadhaar offer businesses access to several government benefits, but Udyam Aadhaar has a wider scope, offering:

• Eligibility for government subsidies and schemes.
• Easy access to bank loans with lower interest rates.
• Faster processing of applications for government tenders and contracts.
• Better tax benefits and exemptions.

For Those Who Have Udyog Aadhaar: Convert to Udyam Aadhaar

If you have already registered under the Udyog Aadhaar scheme, you may wonder whether you need to transition to the Udyam Aadhaar system. The answer is yes! The Udyam Aadhaar registration system has replaced Udyog Aadhaar, and businesses that still hold Udyog Aadhaar need to convert to Udyam Aadhaar to continue availing of government benefits and schemes. The process is simple and free, and you can easily do it online by following the instructions on the government website.

We recommend businesses transition as soon as possible to avoid any disruptions in their access to financial benefits and government schemes. If you need assistance with this conversion process, we can help you complete the registration quickly and easily for just Rs. 118/-.

Conclusion

While Udyog Aadhaar was a simpler system, Udyam Aadhaar brings more advantages with its comprehensive process. MSMEs are encouraged to transition to Udyam Aadhaar to unlock the full range of government benefits.