Home » MSME Registration Vs Udyog aadhar: what’s the difference?

MSME Registration Vs Udyog aadhar: what’s the difference?

MSME Regiseveral programs, incentives, and subsidies. To be eligible for these advantages, you must first register as an MSME.

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MSME Registration Vs Udyog aadhar what’s the difference

MSME Regiseveral programs, incentives, and subsidies. To be eligible for these advantages, you must first register as an MSME. The Udyog Aadhar registration program is another initiative that has been done. This might cause company owners to become confused about the differences between MSME registration and Udyog Aadhar registration. As a result, this article will assist you in understanding the distinction between MSME Registration and Udyog Aadhar.

Also, Read- Udyam Registration

What is the Udyog Aadhar?

A government registration process that gives a corporation a registration certificate is known as Udyog Aadhar. Udyog Aadhar number is issued as a one-of-a-kind number. This effort is being undertaken with the growth of small and medium-sized businesses in mind. The goal of Udyog Aadhar is to provide maximum advantages and access to government programs for companies.


It is a 12-digit Aadhar number and an MSME registration certificate is required for enterprises.

The Udyog Aadhar registration procedure is as follows:

To take use of Udyog Aadhar’s benefits, you must first complete the easy registration process. The fundamental need for the registration procedure is a self-declaration document, known as the Udyog Aadhar Memorandum (UAM).


  • The applicant must complete an online one-page form. The applicant must go to the official Udyam registration website.


  • The applicant must give his or her Aadhar number, bank account information, business existence, employment and ownership information, and other relevant information, as well as self-certified certifications.


  • Multiple industries can be registered using a single registration.


  • A Udyog Aadhar Acknowledgement will be created and delivered to the applicant’s email address once the form is submitted.


  • A unique UAN, or Udyog Aadhar Number, is included in the Acknowledgement form.


What are the Advantages of Registering for Udyog Aadhar?

MSMEs may benefit from a number of benefits after completing the Udyog Aadhar Registration process. The registration procedure is straightforward and does not need a great deal of documentation. The following are some of the advantages of registering for a Udyog Aadhar:


  1. MSMEs can take advantage of a variety of government programs, including unsecured MSME loans, simple loans, micro business loans, discounted rates, and so on.


  1. When participating in international expos, MSMEs might receive financial assistance.


  1. Patent and trademark filings can be done at a cheaper cost.


  1. It is simple to open a current bank account.


  1. Excise duty exemption


  1. Indirect taxes are exempted.


  1. A credit guarantee plan is available.


  1. You can also get a discount on your power costs.

What is MSME (Small and Medium-Sized Enterprise) Registration?

The MSMED Act has several programs, incentives, and subsidies that aid in the growth of MSMEs, which are the backbone of the Indian economy. To take advantage of these perks, you must first register as an MSME. MSMEs support equitable development and give excellent job opportunities. It also plays a significant part in India’s overall output and exports. A proprietorship firm, an LLP, a Public Limited Company, a Private Limited Company, or an LLP are all required for MSME registration.

Process for registering a small business:

Even though registration of MSME is not required under the MSMED Act, registration can offer MSME a variety of benefits and access to subsidies and programs. The procedure for registering an MSME is as follows:


  • The applicant must complete the application with the relevant information, including the GST number, firm name, registration number, and other information.


  • The applicant must provide personal information such as name, address, PAN number, bank account information, a picture, and so on.


  • Following the submission of the application, it will be further processed and assessed by an official executive. If there are any inconsistencies, the executive will notify the applicant to make adjustments to the application.


  • The applicant will obtain a digital MSME registration certificate after the application is approved.


Suggested Read- Udyam Registration Portal


It has previously been said that obtaining both MSME and Udyog Aadhar registration is a superior option. Both registrations aid in increasing the company’s profitability. The government’s goal is to assist Micro, Small, and Medium Enterprises (MSME) in growing and developing, therefore contributing to the expansion of the Indian economy. MSME registration and Udyog Aadhar registration have altered the game and enhanced MSMEs’ performance.

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