Recognising the crucial importance of micro, small, and medium enterprises (MSMEs), the Government of India has implemented several schemes and programmes to aid in their growth and development. Udyog Aadhaar and Udyam Aadhaar are two such initiatives introduced by the Ministry of Micro, Small and Medium Enterprises.
What is Udyog Aadhaar?
Launched in September 2015, Udyog Aadhaar was a platform for MSMEs to register themselves to avail of various benefits. Though Udyog Aadhaar or the Udyog Aadhaar memorandum (UAM) had simplified the existing registration process for MSMEs, there was still considerable room for improvement. Udyam registration replaced this system in July 2020.
Major differences between Udyog Aadhaar and Udyam registration
- Simplified registration process: The Udyam registration process is free of cost and convenient. It is entirely online, paperless, and follows a one-page structure, meaning it has just one step. It is also based on self-declaration, which means enterprises need not upload any documents as proof.
- Integration with government databases: Udyam registration without Aadhaar number of the enterprise owner or authorised signatory is not possible.
- Number of registrations: Enterprises can only file one Udyam registration with a single Aadhaar Card, specifying or adding any number of activities (production, services, or both) under a single registration.
- Nature of certificates: After Udyam registration, the certificates arrive as a soft-copy on the registered e-mail address. They have a QR code that can verify the certificate instantaneously and give you the enterprise details.
Udyam registration is mandatory for all MSMEs, even if they had a prior registration under UAM.
Additional Read: Difference between Udyog Aadhaar and Udyam Aadhaar
Additional Read: How to migrate Udyog Aadhaar to Udyam registration
