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Udyog Aadhar vs Udyam Aadhar: What’s the Difference?

Udyog Aadhar vs Udyam Aadhar: What’s the Difference?

Does the world of enterprise seem daunting to you? Do loads of highly-marketed schemes for MSMEs only confuse you? Take a seat, because up-scaling your business doesn’t have to be a maze. 

If you want to smartly build-up your enterprise, you must know about the difference between Udyam Aadhar and Udyog Aadhar – the two most important schemes that help MSMEs in India thrive in the business landscape.
Here, you’ll find the all-in-one guide on Udyog Aadhar vs Udyam Aadhar. 

Summary

  • What is Udyog Aadhar and Udyam Aadhar? 
  • What’s the Difference: Udyog Aadhar vs Udyam Aadhar? 
  • What Positive Changes Has Udyam Aadhar Brought?
    • Online and Paperless Process
    • User-Friendly Interface
    • Document Requirement 
    • Simplified Aadhaar Requirement
    • Mobile Number Linkage
    • Clarity and Seamlessness
    • Self-Declaration Approach
    • Simplifying the Essentials
    • The Aadhaar-Mobile Duo
  • How to Register for Udyam Aadhar?

What is Udyog Aadhar and Udyam Aadhar? 

Before we dive into the difference between the two schemes, let’s take a brief look at what each is: 

Udyog Aadhar and Udyam Registration (UR), also known as Udyam registration online, are initiatives by the Indian government to boost the growth of small and medium businesses. They share the common aim of supporting MSMEs, but it’s important for businesses to be aware of the distinctive features that set Udyog Aadhar and Udyam Aadhar apart.

What is Udyog Aadhar? 

Udyog Aadhaar is like a special ID for businesses issued by the Government of India. It makes registering easier and gives businesses access to benefits for growth, similar to how Aadhaar works for individuals.

If you want to know in detail about Udyog Aadhar, click here to find out. 

What is Udyam Aadhar?

In 2020, the Ministry of Micro, Small and Medium Enterprises (MSMEs) introduced Udyam Aadhaar to help small businesses get lots of benefits. They brought it in to make things easier and faster, so small businesses could register without dealing with a lot of paperwork. 

The Udyam registration certificate you get after registering is more than just a paper – it’s like a key to getting many advantages without getting stuck in bureaucratic red tape.

What’s the Difference: Udyog Aadhar vs Udyam Aadhar?

Udyog Aadhar, launched in 2015, simplified MSME registration by replacing EM-I and EM-II with a single process, offering a unique identification number. However, it was still time-consuming. 

In contrast, Udyam Registration, introduced in 2020, is a self-declaration system, eliminating intermediaries and enhancing user-friendliness. It provides an improved platform for MSMEs to obtain a registration number, offering more benefits than Udyog Aadhar.

What Positive Changes Has Udyam Aadhar Brought? 

The transition from Udyog Aadhaar to Udyam Aadhaar brought notable changes, enhancing the registration process for MSMEs:

  1. Online and Paperless Process:
  • Udyam Aadhaar introduces a paperless registration through the official government portal, eliminating fees.
  • The Udyam certificate is received as a soft copy via email, featuring a QR code for verification and detailed enterprise information.
  1. User-Friendly Interface:
  • The government portal is designed to be user-friendly, and the registration form is concise, reducing the time required for completion.
  1. Document Requirement:
  • Udyam registration operates on a self-declaration basis, eliminating the need for additional documents or proofs during the registration process.
  1. Simplified Aadhaar Requirement:
  • Unlike Udyog Aadhaar, Udyam registration only necessitates the Aadhaar number of the owner or authorised signatory, removing the need for GST and income tax-related details.
  1. Mobile Number Linkage:
  • The registered Aadhaar number must be linked to a valid mobile number.
  • Each Aadhaar card allows registration for a single enterprise, while various production and service activities can be specified under the same registration.
  1. Clarity and Seamlessness:
  • Udyam Aadhaar enhances clarity, accessibility, and seamlessness, resulting in fewer user errors, rejections, and more successful registrations compared to the Udyog Aadhaar process.
  1. Self-Declaration Approach
  • Udyam Aadhaar brings a breath of fresh air with its self-declaration system. Unlike its predecessor, there’s no need for an avalanche of documents to prove your business’s legitimacy.
  • The process relies on trust and honesty, streamlining the journey for MSMEs.
  1. Simplifying the Essentials
  • To obtain an Udyam certificate, all you need is the Aadhaar number of the enterprise’s owner or authorised signatory.
  • The days of grappling with GST and income tax-related details are behind us. This shift minimises the bureaucratic hurdles, focusing on the core identification element – Aadhaar.
  1. The Aadhaar-Mobile Duo
  • Crucially, the registered Aadhaar number must be linked to a valid mobile number. This not only enhances the security of the process but also ensures a single enterprise is registered under a single Aadhaar card.

  • However, flexibility remains as various activities related to production, services, or both can be specified under the same registration.

Now that you know the positive differences brought by Udyam Aadhar, check out how you can register for the same!

How to Register for Udyam Aadhar? 

Learn how to enrol in Udyam Aadhar for new entrepreneurs by following a simple, step-by-step process on the official Udyam registration portal:

  1. Visit the official Udyam registration website.
  2. Click on ‘New Registration’ and complete the form using your Aadhar and PAN card details.
  3. Verify the information by entering the OTP sent to your mobile.
  4. Select your business type and provide the PAN number associated with your business.
  5. Fill in all required details in the form, ensuring accuracy.
  6. Submit the form, validate it with your mobile number and OTP.
  7. Upon successful registration, you’ll receive a ‘Thank You’ message containing your Udyam registration number via mobile and email.
  8. Download and print your Udyam Registration Certificate.

Gone are the days of paperwork and cumbersome registration processes. With Udyam Aadhaar, the paradigm has shifted towards a seamless, paperless experience. The entire registration unfolds on the official government portal 

The user-friendly interface and a concise registration form make the process a breeze. In just one window, businesses can secure their Udyam certificate, ushering in a new era of simplicity.




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