MSME Registration


What are the Key Features of MSME Registration and Udyog Aadhaar? Let’s understand these Concepts in Brief!

calendar24 Nov, 2020
timeReading Time: 4 Minutes
MSME Registration and Udyog Aadhaar

MSME is a shortened form of the term Micro, Small, and Medium Enterprises.  MSMEs propel the growth of the country and considered as the backbone of the Indian economy. Through the implementation of the MSMED Act[1], the government has introduced plenty of lucrative schemes as well as incentives for the upliftment of the MSME across the country. 

One has to obtain MSME registration in order to avail such benefits.  There is a lot of confusion among the entrepreneurs regarding the MSME Registration and Udyog Aadhaar. This write up will provide the brief on the same.

Is there any Differences between MSME Registration and Udyog Aadhaar?

MSME & Udyog Aadhar registration seems alike, yet they are distinctive initiatives. Udyog Aadhar is a conducive medium for obtaining MSME registration.

Arrival of Udyam Registration

On 26.06.2020, MSME through the notification announced the advent Udyam Registration as the new process for MSME/UDYOG AADHAAR Registration. The new method has become effective from July 1, 2020.

Udyam registration came into the effect to simplify the procedural format that business owners used to address for registration for their business under Micro Small Medium Enterprise or MSME. Before the advent of Udyam Registration, the procedural format for registering the companies was pretty complicated due to tedious paperwork. But after the arrival of Udyam Registration, things become easier for the applicants. 

Before the Udyog Aadhaar Memorandum system, there used to be an old system of EM-I/II (Entrepreneur Memorandum). Previously, there was a different portal that works on national and state-level independently for carrying out MSME registration.  The section below would let you understand the key differences between MSME registration and Udyog Aadhaar by evaluating each section in detail. Those are as follows:-

Udyog Aadhar to Simplify the Procedural Format

The majority of small businesses have a lot of confusion regarding Udyog Aadhar. If you are going through the same dilemma, then you land on the right page. In general, Udyog Aadhar is a government-driven registration that is allocated to the entities in the form of a unique number. Notably, Udyog Aadhar is given to small scale enterprises. Udyog Aadhar allows the businesses to avail maximum from the endless government schemes and growth-centric incentives.  

Updated Procedure for MSME/UDYOG Aadhar Registration

One has to go through several mandatory steps to obtain Udyog Aadhar from the authority. The registration process for Udyog Aadhar started with filing a self-declaration form known as UAM (Udyog Aadhar Memorandum). The following steps would let you complete the same. 

  • The one-page form can be filled either offline or online. To get started with the registration process, you should visit the online portal of MSME. 
  • On the home page, scroll down to select “Udyam Registration (Online Registration for MSME).
  • On the next window, under “MSME/Udyam registration process” select the option called “For new entrepreneurs who are not registered yet as MSME or those with EM-II”.
  • The above option would land you on the new page where you need to enter the Aadhaar card number. 
  • After entering the Aadhaar number, tap on the “Validate & Generate OTP.
  • A few seconds later you will receive the OTP on your registered mobile which needs to enter the confirmation page to get verified and open the web form.
  • In the form, you were required information regarding business activity details, employment bank details, and ownership details, etc along with self-certified certificates. 
  • Next, submit the completed form to receive the registration number and the Udyog Aadhar Number (UAN) on your email id. 

That’s all about the Udyog Aadhar registration process. Now let’s move ahead to the next section i.e. benefit of the Udyog Aadhar registration. 

Udyog Aadhar Registration Benefits

  • Udyog Aadhar registration offers vast access to endless government-based schemes and incentives. The benefits like unsecured MSME loans, micro business loans, hassle-free credit, and subsidized rates are quite prominent with this registration. 
  • Udyog Aadhar registration lets entities promote their products for the global market via foreign expos. 
  • Entities under Udyog Aadhar registration face no constraints while opening the current bank account. 
  • Enterprises having Udyog Aadhar registration are eligible for relaxation on indirect taxes and excise. 
  • MSMEs under Udyog Aadhar registration enjoys lower rates when it comes to patents and trademark. 
  • MSMEs under Udyog Aadhar registration enjoy substantial concession on the electricity bill. 

What is MSME registration?

The MSMED act provides strings of productive schemes, incentives, and subsidies to propel the growth of MSMEs. MSME registration is also known as udyog adhar registration for the small and medium class companies. This is a self-declaration certificate synced with the Aadhaar card.

Once you avail the udyog aadhar registration, government schemes and incentives would become accessible to you. The MSME registration seeks no fees from the applicant and it can be generated promptly by completing the predefined procedure. With MSME registration, enterprises become eligible to avail benefits from several government based scheme and incentives.

MSME registration Benefits

MSME registration Benefits


It’s a good idea to obtain both MSME and Udyog Aadhar registrations to maximize the profitability of the business. Feel free to get in touch with CorpBiz professionals to get more detail on this topic. We can also assist you in obtaining government-based licenses and registration with minimum paperwork and legal constraints.

Read our article: An Overview of New Debt Facilities for Distressed MSME

MSME Registration

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