Difference between Udyog Aadhaar And Udyam

Difference between Udyog Aadhaar And Udyam


The government of India initiated Udyam registration as a substitute to the earlier process of Udyog Aadhaar to make it easier for MSMEs to register with the government portal. With this, every new business in India can register easily without going through a lengthy process and saving time.

Earlier, the process of registration could have been shorter and more precise. The person registering for the same had to go through many categories and documents, requiring a lot of paperwork. This new process allows anyone to register easily in a single window without needing extensive documents or paperwork.

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.

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.


Udyam Portal Online


Micro, Small, and Medium Enterprises registration can be obtained per the MSME Act. A new process of Udyam Registration has been introduced with effect from 01.07.2020 vide Govt. of India Notification S.O. 2119(E), Ministry of MSME, GOI dated 26.06.2020. Any person who intends to set up an MSME may file Udyam Registration online in the Udyam Registration Portal, based on self-declaration, with no requirement to upload documents, papers, certificates, or proof. The MSME registration is not yet made mandatory by the Government of India. Still, it is beneficial because it provides many benefits in terms of taxation, setting up the business, credit facilities, loans, etc. The present article briefs the Udyam Vs. Udyog Aadhar for MSME Registration.

Udyam Registration Benefits


Udyam registration is the new process for registering MSME launched by the Ministry of Micro, Small & Medium Enterprises on July 1, 2020. The government of India initiated Udyam registration as a substitute to the earlier method of Udyog Aadhaar to make it easier for MSMEs to register with the government portal.

The process for obtaining MSME registration has been simplified by introducing the Udyog Aadhar for MSME in India. Before the Udyog Aadhaar, two filings, namely Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-II) had to be filed to obtain MSME or SSI Registration. With Udyog Aadhaar, obtaining SSI or MSME registration has been drastically simplified.

What’s the Difference?


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.



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