The MSME registration system was earlier based on Udyog Aadhaar and is now discontinued. Udyam Registration is the current, mandatory process that uses Aadhaar, PAN, and turnover data to classify enterprises and provide government benefits.
In this article, we explain the difference between MSME and Udyam Registration, benefits, and how the updated system works and how we also adopt those changes.
What Is MSME Registration?
Earlier, small businesses had to apply for an MSME Registration which is important for all small enterprises through the MSME portal with the help of Udyog Aadhaar Memorandum (UAM).
This registration provided an MSME certificate and allowed businesses to access government schemes.
However, most of the system faced issues like duplication, verification delays, and multiple documents. There were high chances of fraudulent and cheating.
What Is Udyam Registration?
On July 1, 2020, Udyam Registration—a new, simple online registration process for Micro, Small, and Medium-Sized Enterprises—was introduced. In essence, MSME takes the role of this system. All it needs is the Aadhaar number, which makes it quicker and easier to use.
Businesses receive a lifetime Udyam Certification after completing the Udyam Registration online registration process on the government portal.
Benefits of Udyam Registration
Here is the benefits of Udyam Registration which we need to know:
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Lifetime validity of Udyam certificate
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Easy bank loan approvals
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Subsidies and tax rebates
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Priority in government tenders
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Protection against delayed payments
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Collateral-free loans under CGTMSE
Both Udyam online registration and MSME Udyam certificate help businesses grow and enjoy government support.
Difference Between MSME and Udyam Registration
You will get the main difference between MSME and Udyam Registration below:
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Features
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MSME Registration (Old System)
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Udyam Registration (New System)
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Portal Used
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UAM / MSME Portal
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Udyam Portal
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Process Type
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Partially manual
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Fully online & automated
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Document Requirement
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Multiple documents
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Only Aadhaar needed
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Certificate Name
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MSME Certificate
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Udyam Certificate
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Validity
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Required renewal
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Lifetime validity
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Classification Basis
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Based on investment
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Based on investment + turnover
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Ease of Registration
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Complicated
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Very simple
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Verification
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Less accurate
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PAN & GST-linked verification
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Why Did the Government Replace MSME with Udyam?
The objective behind replace msme was to:
Is udyam registration number and msme number same?
Yes, the Udyam Registration Number and MSME Registration Number are the same.
Earlier, businesses received an MSME (Udyog Aadhaar) number, but this system has been replaced by Udyam Registration. Now, when a business registers under Udyam, it gets a Udyam Registration Number (URN), which is the official MSME number.
In simple terms, Udyam Registration is the new MSME registration, and the Udyam number is used everywhere as the MSME identification number for government schemes, loans, and benefits.
Do Old MSME Registrations Still Work?
Yes, but they must be converted to Udyam registration.
The government encourages all businesses registered under UAM or MSME to update their records on the new Udyam portal.
Udyam Certificate VS MSME Certificate
Many business owners get confused between the Udyam Certificate and the MSME Certificate. In reality, both refer to the same recognition, but they belong to different time periods.
MSME Certificate (Old System)
Earlier, businesses registered under the Udyog Aadhaar (MSME) system received an MSME certificate. This registration was based mainly on self-declared information and investment details. However, this system has now been discontinued by the Government of India and is no longer valid for availing MSME benefits.
Udyam Certificate (Current System)
The Udyam Certificate is the new and official MSME registration introduced in 2020. It is Aadhaar-based and linked with PAN and GST for better transparency. All government schemes, subsidies, loans, and MSME benefits are now available only through Udyam registration.
They are connected but not similar:
If you want to register your business today, you must complete the process through the Udyam Register Portal. For MSME and Udyam Registration you can connect with the Registration Guru which is one of the best supporting platforms where you can get your registration certification smoothly.
FAQs
1. Is MSME and Udyam Registration the same?
No. MSME Registration (UAM) was the old system, while Udyam Registration is the new and updated registration process launched in 2020. Udyam has replaced MSME registration completely.
2. What is the main difference between MSME and Udyam Registration?
The main difference is that MSME Registration required multiple documents, whereas Udyam Registration is fully online, Aadhaar-based, and linked with PAN and GST for automatic verification. Udyam provides a lifetime-valid certificate.
3. Which registration is valid now—MSME or Udyam?
Only Udyam Registration is valid now. The government has discontinued the old MSME/UAM process. All MSMEs must migrate to the Udyam Portal to receive the updated certificate.
4. Do I need to renew my Udyam Registration every year?
No. Udyam Registration comes with lifetime validity. However, businesses must update turnover and investment information annually if required by the portal.
5. Can I convert my old MSME/UAM registration to Udyam?
Yes. You can migrate your old MSME or UAM number on the Udyam Portal by validating your Aadhaar, PAN, and GST details.
6. Is Aadhaar required for Udyam Registration?
Yes. Aadhaar is mandatory for the owner, partner, or director. The system uses Aadhaar verification to simplify MSME Udyam registration.
7. What are the benefits of Udyam Registration?
Benefits include priority loans, subsidies, government tenders, protection against delayed payments, and access to multiple MSME schemes. It also provides an official Udyam Certificate.
8. Is Udyam Registration free of cost?
Yes, registering on the official Udyam Portal is free. However, many businesses choose expert assistance for a smooth process.
9. Can I do MSME Udyam Registration online?
Absolutely. The entire process is done through Udyam Online Registration, requiring only Aadhaar, PAN, and GST details.
10. Who can apply for Udyam Registration?
Any Micro, Small, or Medium business — including proprietorships, partnerships, companies, LLPs, and startups — can apply through the Udyam Register Portal.
11. What documents are required for Udyam Registration?
Only the following are needed:
No additional documents or uploads are required.
12. Can I change details on my Udyam Certificate?
Yes, you can update business details anytime by logging into the Udyam Portal using your registered mobile and OTP.