The Indian government has introduced two programmes: Udyog Aadhar and Udyam Registration (UR), commonly known as Udyam registration online. Its objective is to encourage and assist the expansion of micro, small, and medium-sized businesses (MSMEs) in India. Despite the fact that both programmes have the same objective, businesses should be aware of the significant variations between Udyog Aadhaar and UR.
Udyog Aadhar: What Is It?
In September 2015, the Ministry of Micro, Small, and Medium Enterprises introduced Udyog Aadhar for the first time. The Udyog Aadhar Memorandum (UAM) was another name for it. Udyog Aadhar was created with the intention of giving MSMEs a special identification number so they could take advantage of different government perks including tax breaks and subsidies. Prior to this, registering an Entrepreneur Memorandum-I (EM-I) and an Entrepreneur Memorandum-II (EM-II) was required for MSME registration. That was condensed by Udyog Addhar into a single registration step. MSMEs were required to give the government their PAN number, bank account information, and other pertinent data in order to receive Udyog Aadhar. Even though Udyog Aadhar streamlined the registration process at the time, it was still rather time-consuming.
Definition of Udyam Registration
In July 2020, Udyam Registration was implemented to replace Udyog Aadhar. This new programme was created with the intention of streamlining and improving the registration procedure for MSMEs. It actually did that. As a self-declaration mechanism, Udyam Registration enables firms to register themselves without the use of middlemen. MSMEs can get their Udyam Registration number through this single site, and they can utilize it to get access to a variety of government incentives. Even more advantages exist with Udyam than with Udyog Aadhar. Although Udyog Aadhar and Udyam differ significantly from one another, each of these differences is an upgrade over the earlier architecture.
Significant variations between Udyog Aadhar and Udyam
- One significant distinction between Udyog Aadhar and Udyam is how the latter obtains the special identifying number. Businesses had to give the government a lot of information as part of Udyog Aadhar. Udyam Registration, on the other hand, just needs the business to self-declare.
- The fact that Udyam has a one-page structure sets it apart from Udyog Aadhar in another way. This implies that all the data needed for registration must be given at once. In other words, there is only one stage in the Udyam registration process.
- The Udyam registration certificate is free to obtain. It is sent to your email address as a soft copy.
- The new UR certificates have a QR code, which is still another distinction between Udyog Aadhar and Udyam. People can quickly validate their UR certificate with this code!
Suggested Read: Print Udyam Application
Conclusion
To sum up, Udyam Registration has taken over as the new programme to support MSMEs in India, replacing Udyog Aadhar. Udyog Aadhar and Udyam differ greatly from one another. The new programme makes it easier for firms to register. It has been made more user-friendly and now offers MSMEs a solitary platform to get their Udyam Registration number. Udyam registration has various advantages, including loans without collateral, subsidies for machinery and equipment, and more. Businesses can benefit from a more streamlined and effective registration procedure with Udyam Registration. They have easy access to the assistance they require to expand their company.
