Udyam vs Udyog Aadhar: Know the Distinctions

what is udyam and udyog aadhar registration?

Udyam and Udyog Aadhar registration are the two processes for registering MSMEs (Micro, Small and Medium Enterprises) in India. The registration is primarily done to avail the benefits provide by the government for MSMEs.

Udyam registration is the new process that was introduce by the Government of India in July 2020 to replace the Udyog Aadhar registration. The Udyam registration process is entirely online and is free of cost. It is meant for new MSMEs and provides a unique identification number call Udyam Registration Number (URN) to the register entity.

On the other hand, Udyog Aadhar registration was the previous registration process for MSMEs in India. It was introduce in September 2015 and was replace by the Udyam registration process in 2020. Udyog Aadhar registration was available for both new and existing MSMEs with an investment limit of up to Rs. 10 crores in plant and machinery. The registration process require the submission of various documents, including Aadhaar card, PAN card, and bank account details. It provide a unique identification number called Udyog Aadhar Number (UAN) to the register entity.

Both Udyam and Udyog Aadhar registration provide various benefits to MSMEs, including access to government schemes and incentives, credit guarantee, priority sector lending, and more.

Here are some key distinctions between Udyam and Udyog Aadhar:

Eligibility criteria: Udyog Aadhar was previously available for both new and existing enterprises with a limit of Rs. 10 crores of investment in plant and machinery. Udyam registration is only for new MSMEs, and the investment limit has been revise to Rs. 1 crore for micro-enterprises and Rs. 10 crores for small and medium-size enterprises.

Registration process: The Udyam registration process is entirely online, with no need for any documents or papers to be submit. In contrast, Udyog Aadhar registration requires submission of various documents, including Aadhar card, PAN card, and bank account details.

Validity and renewal: Udyam registration is valid for a lifetime, while Udyog Aadhar registration is valid only for five years. Udyog Aadhar registration needs to be renew after every five years, while Udyam registration does not require any renewal.

Classification criteria: Udyog Aadhar registration is base on the investment limit, while Udyam registration also considers turnover as a classification criterion.


The abbreviation ‘ MSME’ represents the miniature, little and medium ventures. It is a different part of the public authority of India which is the service of MSME. MSME is the most elevate chief body that plans and directs the guidelines, guidelines, and regulations for the MSME ( miniature, little and medium endeavors) in India. Its base camp is in New Delhi. the undertakings which are participate in assembling, creation, and administration are determine by various criteria :

  • Miniature ventures: A plant, organization, or undertaking where the speculation is underneath the 25 L, it is a kind of miniature endeavor.
  • Little endeavors: when the venture of a plant or undertaking is over 25 L yet it is under 5 cr is a little venture.
  • Medium-sized projects: This is a medium-size project with a speculative budget of between 5 and 10 crore.

The current state of the MSME measures is fairly obvious.

The MSME sector plays a significant role in the Indian economy because it adds a large number of businesses. While it is true that a sizable portion of this sector is in the grey area, this indicates that those businesses are omitting to enrol in the MSME enrollment plot for unknown reasons.

Udyam enrollment

The presentation of the Udyam enrollment was to improve the course of enlistment and to limit the tediousness of the enrollment. limited scope endeavors, plants, or organizations can enlist themselves on the Udyam enrollment entryway in a simple manner under the MSME area.

This enlistment needs a base charge and needs no necessity of paper for the enrollment.

Udyog Aadhar enlistment

The service of miniature, little and medium undertakings gives the Udyog aadhar enrollment. This cycle began quite a while back, a 12-digit extraordinary recognizable proof number is given, it is suppose to be the aadhar for business. till this time 48.5 L undertakings are add under this Udyog Aadhar enlistment.

The cycle is the Udyog aadhaar memorandum(UAM) in which an endeavor can be enroll by filling a one-page structure, which has been operationalize by the service of MSME.

To enroll, Udyog aadhar makes the course of enlistment simple.

 Numerous candidates are as yet confuse about where they ought to apply for the enrollment, on the Udyam enlistment gateway or the Udyam enlistment.

so there are various contrasts between the Udyam enlistment and the Udyog aadhar enrollment.

Presently take a gander at the vital contrasts between both the enrollment :

Key contrasts among Udyam and Udyog aadhar enrollment

The principal distinctions between both the Udyog Aadhar enrollment and Udyam enlistment are as beneath :

  • There are numerous distinctions between the two kinds of enlistment. Be that as it may, presently Udyam enlistment and Udyam enrollment are something similar from July 2020 in light of the fact that Udyog aadhar enrollment is divert into Udyam enrollment from July 2020.
  • Under the Udyog aadhar enrollment, it isn’t associate with the other government online interface ex. Pearl gateway (Government e-Marketplace, it is such a web-base interface where every one of the normal labor and products is secured on the web)
  • Be that as it may, under the Udyam enlistment, it is totally associate with different entrances as I reference previously.
  • Assuming we think about the course of enrollment, Udyam requests a couple of subtleties while Udhyam enlistment assumes we go on the Udyam enrollment entry; it has a long structure that requires all data of candidates like annual expense and the GST subtleties.
  • There is no requirement for aadhar connect versatile subtleties for the Udyog aadhar enrollment however on the Udyam enlistment entryway, it requires just the aadhar card which is connect with your portable number.
  • Prior there was an extend interaction for getting a Udyog aadhar enrollment endorsement and the cycle was excessively befuddling and tedious for the new ventures since here there were numerous classifications and many pages you need to go through. here on the entryway, there was a parcel of desk work and you were expected to transfer specific records on the given entryway.
  •  On the opposite side of the Udyam enrollment entrance, it has just a solitary window for the candidates which is paperless, and don’t bother giving the additional archives or endorsements to enlist on this entryway.

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So exhaustively, we have given an adequate measure of realities that assists the clients with grasping the distinctions between the Udyog Aadhar enrollment and Udyam enlistment and the course of enrollment with extra realities.

I trust these realities will assist the clients with separating between the two kinds of enrollment, with the assistance of these realities a candidate or entrepreneur can recognize the key distinctions.