As part of the Atmanirbhar Bharat initiative aimed at facilitating ease of doing business, the Ministry of MSME introduced a new definition for MSMEs along with a revamped registration process known as Udyam Registration. This new registration system came into effect on 01-07-2020.
Before this notification, MSME registration was known as Udyog Aadhar Registration. The newly launched Udyam Registration process brings several updates and is significantly different from the old system. It offers a more simplified, digital, and transparent mechanism for MSME registration.
Udyog Adhaar Vs Udyam Registration |
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Basis Of Changes | Udyog Aadhar Memorandum | Udyam Registration |
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Aadhar Number | Earlier, one Aadhar could be used to register multiple businesses. | Now, only one Udyam Registration can be made per Aadhar number. One enterprise per Aadhar. |
PAN validation | PAN was not mandatory. | PAN and GSTIN are mandatory, and PAN details are automatically validated. |
Number of employees | The total number of employees was mentioned without any breakdown. | Now, gender-wise details of employees (male/female/others) must be included. |
Linkage with Income tax, PAN, and GST department | All information was filled in manually based on self-declaration. | Data is auto-fetched from the ITR (Income Tax Return) and GST filings of the previous year. |
Composite criteria for the classification of MSMEs | Different criteria were used for the manufacturing and service sectors. | A single and unified criterion is used for both sectors - based on investment and turnover. |
Registration Certificate | A Udyog Aadhar Memorandum (UAM) was issued instantly upon registration. | A Udyam Registration Number is generated first. The Udyam Registration Certificate is issued after verification. |
The details of the enterprise can now be accessed through the Udyam Registration Certificate, which includes a dynamic QR code for quick verification.
To ensure accuracy and transparency, the Udyam registration system is linked with Income Tax, GST, and PAN databases for automatic verification of information.
The earlier separate criteria for manufacturing and service sectors have now been combined. MSME classification is now based on both investment and annual turnover, applicable to all sectors.
All businesses registered under Udyog Aadhar must re-register under Udyam Registration by 31st March 2021 to remain valid
To promote ease of doing business, the following portals have been integrated with the Udyam Registration Portal:
The Government of India has started a new and easy process for businesses to register as MSMEs (Micro, Small, and Medium Enterprises). This helps new and small business owners enjoy various government benefits.
We are private consultants with experience in Udyog Aadhar and Udyam registration. Our team makes the process simple, fast, and hassle-free for you.
Just fill out the enquiry form on our website msmeregistrar.org and our experts will get in touch with you.
If you need help, just fill out the Udyam enquiry form, and one of our team members will call you through the Udyam helpline number.
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Lokesh Rawat, From Madhya Pradesh
Recently applied Udyam Certificate