What is the Difference between MSME, Udyog Aadhaar & Udyam Registration?
There are many queries regarding differences between MSME vs Udyog Adhaar, MSME vs Udyam Registration, Udyog Adhaa vs Udyam Registration searched over the internet.
Many people are still confused and unaware of the new udyam registration process. So today in this blog article, I will clear all your doubts regarding MSME, Udyog Aadhaar, and Udyam Registration.
It is to be noted that MSME, Udyog Aadhaar, and Udyam Registration are the same only the name has been changed. The new registration process is Udyam Registration which replaced the old Udyog Aadhaar/MSME registration.
What is MSME?
MSME stands for Micro Small and Medium Enterprise and it is also known as SME. MSME is a system created by the government of India to strengthen and encourage micro, small, and medium sized businesses by providing them the benefits of government schemes. This scheme was regulated by the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.
Micro Small and Medium enterprises economy are considered as the backbone of an Indian economy. So to give benefits to this business the government has stated to join this business under the MSME system through MSME registration.
New Definition for Enterprises Under MSME
| Enterprise | Investment in plant and machinery or equipment | Turnover |
|---|---|---|
| Micro enterprise | Should not exceed INR 1 Crore | Should not exceed INR 5 Crore |
| Small enterprise | Should not exceed INR 10 Crore | Should not exceed INR 50 Crore |
| Medium enterprise | Should not exceed INR 50 Crore | Should not exceed INR 250 Crore |
What is Udyog Aadhaar?
Udyog Aadhaar is the name of the Registration process under Micro Small Medium Enterprise (MSME) commonly known as Udyog Aadhaar Registration. But this system has now been replaced with the Udyam Registration. It is the Updated version of it.
What is Udyam Registration?
The Government of India has launched a new system for registration under MSME on 1st July 2020 commonly known as Udyam Registration and from now MSME will be called as udyam. It is the replaced version of Udyog Aadhaar or MSME registration. The Indian government has taken these steps to promote the Atmanirbhar Bharat Scheme and ease of doing business.
After the implementation of this new system the registration process, registration will become more simple and easier for the person who wants to register under MSME. Registration can be done just with an Aadhaar Card and form submission is on self declaration basis.
Benefits of Registering Under Udyam Registration
Check what benefit you will get after registering as Udyam:
- 100% collateral or security free bank loans.
- Gets the benefits of government schemes.
- The subsidy will be available on the bank loan interest rate, government registration, patents and barcode registration, income tax, and GST returns.
- Concession will be given on electricity and water bills.
- Protection against default and delayed payments.
- Security on ISO Certification payments.
Know more about the benefits of Udyam Registration
Apply for Udyam Registration Now!
MSME VS Udyog Aadhaar vs Udyam Registration
| Basis of Difference | Udyog Aadhar Registration | MSME Registration | Udyam Registration |
|---|---|---|---|
| Currently Working | No | No | Yes |
| Aadhar Card Number | Multiple Registration can be done with and without an Aadhar Card. | Same as Udyog Aadhaar Registration | Now an organization can only have one Udyam Registration by using a single Aaadhar number. |
| PAN validation | No PAN card validation required. | Same as Udyog Aadhaar Registration | For company registering validation of PAN card and GSTIN is mandatory |
| Link with Income tax, PAN and GST department | Self Declaration Basis | Same as Udyog Aadhaar Registration | Based on the Income Tax Return (ITR) of last year. |
| Registration Certificate | Udyog Aadhar Registration certificate is issued after Registration. | Same as Udyog Aadhaar Registration | Udyam Registration certificate is issued after registration. |
| Registration Number and its format | Udyog Aadhaar Number (UAN) ( 12-digit unique identification number) | Same as Udyog Aadhaar Registration | Udyam Registration Number (URN) ( 16-digit unique identification number) |
Udyam Registration for Existing Firm
According to the 26th June 2020 notification circulated by the government. It is clearly mentioned in it that every enterprise which has previously registered as udyog aadhaar/ MSME registration has to re-register under udyam registration before 31st March 2021.
We have tried our best to provide all the details regarding MSME, Udyog Aadhaar, and Udyam Registration. I hope in this blog article all your doubts have been cleared.
If you have any queries regarding this then feel free to reach us at udyam.org.in and we will contact you shortly.
Also, follow our Udyam.org.in Fb page for the latest udyam updates.
