For small, micro and medium-sized enterprises (MSMEs) In India Government registration is vital to gain access to many advantages. In the course of time, registration procedures for MSMEs have developed. In the past, firms had to sign up with Udyog Aadhaar and now, the government has instituted the Udyam registration process. In the wake of this, businesses are often left to wonder whether there is a distinction between a Udyam certificate as well as Udyog Aadhaar?
In this post we’ll go over both of them thoroughly and assist you to know the key distinctions in terms of benefits and advantages, as well as how you can get a Udyam Certificate online.
What is Udyog Aadhaar?
Udyog Aadhaar was announced through the Ministry of MSME in 2015 in order to provide a quick and easy way to allow a company to be registered in the MSME category. Its primary objective was to offer a simple and easy registration procedure for businesses that are small. Entrepreneurs needed only their Aadhaar number as well as basic business information to sign up.
Key Features of Udyog Aadhaar:
- A self-declaration procedure.
- The required documents for supporting the registration were not needed when registering.
- A twelve-digit Udyog Aadhaar Memorandum (UAM) number was released.
- Facilitated MSMEs access to different incentives and schemes from the government.
But, due to the necessity to have reliable and modernized technology in the end, it was decided to replace the Udyog Aadhaar framework and was eventually changed.
What is Udyam Registration?
In July of 2020 In July 2020, the Indian government announced a brand new registration method called Udyam registration which aims at making this MSME registration process accessible, effective, as well as integrated with the other systems of government including the income tax as well as GST portals.
After successful registration, a business is granted an Udyam Certificate that serves as an evidence for MSME status.
Key Features of Udyam Registration:
- The registration process is based on PAN or GSTIN.
- Automatic verification of information in government databases.
- It doesn’t require any physical documents – this is a completely digital process.
- An individual Udyam registration number (URN) as well as the digital document (Udyam Certificate) is provided.
- Regular updates to information are essential to keep active status.
Udyog Aadhaar vs. Udyam Certificate: Key Differences
| Feature | Udyog Aadhaar | Udyam Certificate |
| Launch Year | 2015 | 2020 |
| Registration Basis | Aadhaar is the only way to get it. | PAN & GSTIN |
| Document Requirement | Self-declared information | Auto-fetching of Govt portals |
| Certificate Format | Udyog Aadhaar Memorandum | Digital Udyam Certificate |
| Verification | Manual/self-declared | Automated validation |
| Compliance | Not required regular updates | Regular updates are required. |
The most significant thing to note is the fact that this Udyam Certificate offers higher credibility and authenticity due to the fact that it utilises validated data from databases of the government which reduces the chance of fraud or errors.
Why Was Udyog Aadhaar Replaced?
The switch between Udyog Aadhaar to Udyam Registration was required to introduce an increased level of transparency and automatization. It was not able to integrate with other databases, such as the GST and Revenue Tax departments. This sometimes resulted in inconsistent corporate classification.
Additionally, because Udyog Aadhaar permitted self-declaration with no checking, there was concern concerning abuse. The Udyam Registration procedure tackled these concerns by introducing procedures for verification and making sure that companies operate within MSME limitations that are based on investment and turnover.
How to Download Udyam Certificate Online
If you’ve already been registered with Udyam, It is important to take a copy of the Udyam Certificate to keep for your records. It is a must in submitting applications to tenders from the government and loans, as well as subsidies.
Steps to Download Udyam Certificate:
- Visit the official Udyam Registration portal
- Select “Print/Download Udyam Certificate” in the menu.
- Input in your Udyam registration number (URN) and registered mobile number or email address.
- You must submit the OTP that you have received.
- After you have verified your identity, you will be able to look up and download the Udyam Certificate in PDF format.
Be sure to save and save the certificate because it’s a crucial legal document to your company.
What If You Have a Udyog Aadhaar?
If you have previously registered with Udyog Aadhaar, you need to switch into the Udyam Registration System. The government has stopped Udyog Aadhaar and Udyam registrations are valid from this point ahead to be eligible for MSME benefits.
How to Migrate:
- Go to the Udyam website.
- Select the option “For those already having registration as UAM”.
- Input Your Udyog Aadhaar Number, and then complete the steps to register in Udyam.
When the process has been completed Once the process is completed, you are able to download the Udyam Certificate using your current URN.
Benefits of Having a Udyam Certificate
The process of registering under Udyam and getting the Udyam Certificate can open the doors to an array of advantages.
- Priority sector loans by banks.
- Loans that are not collateral-free in the context of CGTMSE.
- Subsidies for upgrades to technology as well as ISO certification.
- Concessions for electricity bills and registration of patents.
- Facilitation of participation in tenders for government and other procurement procedures.
These incentives are intended to aid MSMEs to grow and be more competitive, both in national and global marketplaces.
Final Thoughts
The switch to Udyog Aadhaar and Udyam Registration marks a significant improvement in how MSMEs are valued and aided in India. Although Udyog Aadhaar served its purpose at the time however, it is now the Udyam Certification has become the sole identity of MSMEs that guarantees authenticity as well as accessibility to the government’s schemes.
If you’re not yet migrating to a new certificate or downloaded it now is the best time. Log on to the official site and download your Udyam Certificate immediately to safeguard your company’s future as well as take advantage of the advantages that come with being an MSME registered MSME.
Tags: aadhaarudyamudyog