Difference Between Udyam Registration and Udyog Aadhar

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

Udyog Aadhar

Udyog Aadhar is the old process of registering MSME business in India. The Udyog Aadhar 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 Aadhar Memorandum(UAM).

Udyam Registration

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

Udyog Adhaar Vs Udyam Registration

Basis Of Changes	Udyog Aadhar Memorandum	Udyam Registration
Aadhar Number	Before the notification, entrepreneurs can register more than one business using a single Aadhar Card.	Now using a 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 Aadhar Registration	Number of Employees has to be entered based on Gender segregation
Linkage with Income tax, PAN and GST department	All figures were to be entered manually on a 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 sectors 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 Aadhar

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

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


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


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


4. Businesses that are registered under Udyog Aadhar 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 Aadhar number are mandatory.


• Entrepreneurs must apply for the PAN & GST number before March 2021 and you can only proceed with Aadhar 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 Aadhar 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 Aadhar before 30th June 2020 shall continue to be valid only for a period upto the 31st March 2021.


• An entity that is registered under the Ministry of Micro, Small and Medium Enterprises with any other organization shall be registered under the Udyam Registration.

Note: If you have an existing business registered, you can re-register your business here: Udyam Re-Registration

Udyam registration has been started to make the registration process easy. Now, you won’t have to fill out the lengthy application form and submit a physical copy of the documents. You just have to fill out the simple form with the basic details and leave the rest in your 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 out the online MSME registration form, or have any doubts on MSME Registration then you can reach us at; Facebook Page: @msmeregistrar.net
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