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Difference Between Udyam Registration and Udyog Aadhaar

Many people still have confusion or are unaware about what is the difference between Udyam registration and Udyog Aadhaar? Here we have explained in detail about Udyam registration and Udyog Aadhaar.

Udyog Aadhaar

Udyog Aadhaar is the old process of registering MSME business in India. The Udyog Aadhaar is a twelve digit number issued by the Ministry of MSME for the identification purpose of MSMEs.It was started back in September 2015 and the process to register under Udyog is known as Udyog Aadhaar Memorandum(UAM).

Udyam Registration

Udyam Registration is the updated version of Udyog Aadhaar to register MSME. It was announced by the Government of India in initiation with Atmanirbhar scheme for facilitating ease of doing business the Ministry Of MSME.

Udyog Adhaar Vs Udyam Registration

Basis Of Changes Udyog Aadhar Memorandum Udyam Registration
Aadhar Number Prior to the notification, entrepreneurs can register more than one business using single Aadhaar Card. Now using single Aaadhar number, an enterprise can only have one Udyam Registration
PAN validation No validation of PAN was required. PAN and GSTIN are mandatory for enterprises registering under Udyam and validation of PAN is mandatory.
Number of employees Number of employees was to be entered in Udyog Aadhaar Registration Number of Employees has to be entered on the basis of Gender segregation
Linkage with Income tax, PAN and GST department All figures was to be entered manually on self-declaration basis Now all the details should be entered as per ITR (previous year filed) and GST.
Composite criteria for the classification of MSMEs Earlier there were separate limits for both the sectors of manufacturing and service for classification. Now, there is the same limit for investment and annual turnover for both the manufacturing and service sector for classifications.
Registration Certificate At the time of registration Udyog Aadhar Memorandum (UAM) is issued. Udyam Registration Number is issued after applying and Udyam Registration Certificate shall be issued only after verification.

Udyam Registration - New Changes in Udyog Aadhaar

Here we have mentioned the key point where Udyam Registration is different from Udyog Aadhaar :

  1. Details of enterprise can be accessed with the help of Udyam Registration Certificate which will have a dynamic QR Code

  2. Income tax, GST and PAN department are linked for the verification of company.

  3. For both the manufacturing and service sectors, classification requirements i.e. investment and business turnover, are now merged.

  4. Businesses which are registered under Udyog Aadhaar will have to re-register before 31.03.2021 in Udyam.

  5. PAN and GSTIN are mandatory for registration:.

    • In the case of a business, LLP, cooperative society, trust or society, GSTIN and PAN along with its Aadhaar number are mandatory.

    • Entrepreneurs must apply for the PAN & GST number before March 2021 and you can only proceed with Aadhaar on a self-declaration basis in the case of the Proprietor.

  6. The MSME Ministry has made it mandatory for PAN and GSTIN to be validated for registration on or after 01.04.2021.

  7. The registration of the following two portals is also merged with the Udyam Registration Portal for the ease of doing business and MSME facilitation.

    • Government e-Market (GeM) portal, and
    • TReDS portal

Registration of existing enterprises

  • All existing businesses registered under Entrepreneur Memorandum (EM-Part-II) or Udyog Aadhaar memorandum (UAM) shall register again on the Udyam Registration portal on or after 1st July, 2020.

  • All enterprises registered on or before 30th June 2020, shall be re-classified according to the new registration process.

  • The existing enterprises registered under Udyog Aadhaar prior to 30th June 2020 shall continue to be valid only for a period upto the 31st March 2021.

  • An entity which is registered under the Ministry of Micro, Small and Medium Enterprises with any other organisation shall be registered under the Udyam Registration.
Note : If you have existing business registered, you can re-register your business here: Re Udyam -registration

Udyam registration has been started to make the registration process easy. Now, you won’t have to fill the lengthy application form and submit a physical copy of documents. You just have to fill the simple form with the basic details and leave the rest in our hand. We have a team of professional consultants who will help you in the further application process.

For those who have not registered under Udyam/Udyog/MSME Click here to register

If you are facing any problem while filling the online MSME registration form, or have any doubts on MSME Registration then you can reach us at; Facebook Page:

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LAST UPDATED ON : 02/12/2023