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Difference between Udyog Aadhar and Udyam Registration

Published On: Feb 7, 2023 • Last Updated: Feb 10, 2023 • 3.1 min read •

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.

What is Udyog Aadhar

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. Before this, the process for MSME registration was to get Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-II) registration. Udyog Addhar simplified that into one single registration process. To obtain Udyog Aadhar, MSMEs had to provide their PAN and bank account details along with other relevant information to the government. Even though Udyog Aadhar simplified the then existing registration process, it was still quite consuming. 

What is Udyam Registration 

Udyam Registration was introduced in July 2020 to replace Udyog Aadhar. The aim of this new program was simplifying the registration process for MSMEs and making it more user-friendly. It did just that. Udyam Registration is a self-declaration system, which means that businesses can register themselves without the need for intermediaries. This single platform allows MSMEs to obtain their Udyam Registration number, which they can then use to access various government benefits. Udyam has even more benefits than Udog Aadhar did. There are significant differences between Udyog Aadhar and Udyam, but these differences are all improvements on the then existing structure.

Major Differences between Udyog Aadhar and Udyam

  • 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.
  • Another difference between Udyog Aadhar and Udyam is that the new UR certificates come with a QR code. This code lets people verify their UR certificate within seconds!

Conclusion

In conclusion, Udyam Registration has replaced Udyog Aadhar as the new program to support MSMEs in India. There are significant differences between Udyog Aadhar and Udyam. The new program simplifies the registration process for businesses. It has made it more user-friendly, and provides a single platform for MSMEs to obtain their Udyam Registration number. There are many benefits to Udyam registration, such as collateral-free loans, subsidies on machinery and equipment etc. With Udyam Registration, businesses can enjoy a more streamlined and efficient process to register. They can easily access the support they need to grow their businesses.

Frequently Asked Questions

How long does it take to get a Udyam number?

The process of obtaining a Udyam number is swift and you can complete it within a few hours of submitting the required information and documents.

Is Udyam number the same as Udyog Aadhaar?

Yes, Udyam number is the new name for Udyog Aadhaar, which was changed in 2021. The registration process has also been significantly improved.

Is Udyam number mandatory for all businesses?

A Udyam number is mandatory for all businesses that fall under the definition of micro, small and medium enterprises as defined by the MSME Act, 2006.

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Monjima Ghosh
About the Author

Monjima Ghosh

Monjima is a lawyer and a professional content writer at LegalWiz.in. She has a keen interest in Legal technology & Legal design, and believes that content makes the world go round.

4 Comments

  1. G K Gore 08/03/2023 at 11:06 am - Reply

    Whether an entrepreneur obtain udyam registration even if he is having udyog aadhaar?

    • Diksha Shastri 09/03/2023 at 4:56 am - Reply

      You can resolve all your queries regarding Udyam by reaching out to us at support@legalwiz.in or give us a call at 1800 313 4151 / 8980685509. Hope this is helpful!

  2. Sharad 26/04/2023 at 6:33 pm - Reply

    UAM No. must be of first 2 of alphabets after that 2 digit numeric followed by one alphabet and last 7 of numeric only
    , but my old udyam adhar is KR-13-0000295 and if I go for new registration it says this pan card has already registered.
    Please help

    • Monjima Ghosh 15/05/2023 at 12:03 pm - Reply

      Hi, the current format for Udyam registration number is UDYAM followed by two alphabet state code, followed by two digits, and then followed by 7 digits. The format looks something like this: UDYAM-AB-00-0123456. Any other format means that you must have the older Udyog Aadhar registration. In that case you need to go for migration of your Udyog Aadhar to Udyam. You can reach out to us at support@legalwiz.in if you need help with the migration process.

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