Udyog Aadhar, and Udyam Registration (UR) also known as Udyam registration online, are two programs introduced by the Indian government. It’s goal is to support and promote the growth of micro, small and medium enterprises (MSMEs) in India. Despite both programs having the same goal, there are notable differences between Udyog Aadhar and UR that businesses should be aware of.
What is Udyog Aadhar
Udyog Aadhar was first launched in September 2015 by the Ministry of Micro, Small and Medium Enterprises. It was also known as Udyog Aadhar memorandum (UAM). The purpose of Udyog Aadhar was to provide MSMEs with a unique identification number that would allow them to access various government benefits such as subsidies and tax benefits. Before this, the process for MSME registration was to get Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-II) registration. Udyog Addhar simplified that into one single registration process. To obtain Udyog Aadhar, MSMEs had to provide their PAN and bank account details along with other relevant information to the government. Even though Udyog Aadhar simplified the then existing registration process, it was still quite consuming.
What is Udyam Registration
Udyam Registration was introduced in July 2020 to replace Udyog Aadhar. The aim of this new program was simplifying the registration process for MSMEs and making it more user-friendly. It did just that. Udyam Registration is a self-declaration system, which means that businesses can register themselves without the need for intermediaries. This single platform allows MSMEs to obtain their Udyam Registration number, which they can then use to access various government benefits. Udyam has even more benefits than Udog Aadhar did. There are significant differences between Udyog Aadhar and Udyam, but these differences are all improvements on the then existing structure.
Major Differences between Udyog Aadhar and Udyam
- One major difference between Udyog Aadhar and Udyam is the process of obtaining the unique identification number. Udyog Aadhar required businesses to provide a significant amount of information to the government. On the other hand, Udyam Registration only requires self-declaration by the business.
- The second difference between Udyog Aadhar and Udyam is that Udyam follows a one-page structure. This means that all the information required for registration is to be provided in one go. In other words the Udyam registration process only has one step.
- There is no charge for Udyam registration certificate. You receive it as soft-copy at your email address.
- Another difference between Udyog Aadhar and Udyam is that the new UR certificates come with a QR code. This code lets people verify their UR certificate within seconds!
In conclusion, Udyam Registration has replaced Udyog Aadhar as the new program to support MSMEs in India. There are significant differences between Udyog Aadhar and Udyam. The new program simplifies the registration process for businesses. It has made it more user-friendly, and provides a single platform for MSMEs to obtain their Udyam Registration number. There are many benefits to Udyam registration, such as collateral-free loans, subsidies on machinery and equipment etc. With Udyam Registration, businesses can enjoy a more streamlined and efficient process to register. They can easily access the support they need to grow their businesses.
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