Udyog Aadhaar was a government initiative launched to support MSMEs (Micro, Small, and Medium Enterprises) in India by providing them with a unique identification number. However, as of July 1, 2020, Udyog Aadhaar has been officially replaced by Udyam Registration, a more refined and technology-enabled process developed by the Ministry of MSME. This transition aimed to streamline the registration process, improve data transparency, and offer better benefits and integration with other schemes and departments like GST and Income Tax.
This summary explores everything you need to know about Udyog Aadhaar (old system) and Udyam Registration (new system) including eligibility, process, documents required, benefits, schemes, updates, and FAQs.
Understanding MSMEs
Before diving into registration, it’s important to know who qualifies as an MSME.
MSME Classification (Effective July 2020):
| Category | Investment in Plant/Equipment | Turnover |
|---|---|---|
| Micro | Up to ₹1 Crore | Up to ₹5 Crore |
| Small | Up to ₹10 Crore | Up to ₹50 Crore |
| Medium | Up to ₹50 Crore | Up to ₹250 Crore |
These limits are applicable for both manufacturing and service enterprises under the new definition.
What is Udyog Aadhaar?
Udyog Aadhaar was launched to simplify the process for MSMEs to register with the government. It allowed business owners to self-certify their details and obtain a 12-digit Udyog Aadhaar Number and a certificate. This system ran successfully until mid-2020.
However, to eliminate misuse and improve coordination with other government databases (such as Income Tax and GST), Udyam Registration replaced Udyog Aadhaar.
What is Udyam Registration?
Udyam Registration is the new MSME registration process launched by the Ministry of MSME. It’s a single-window, fully online, paperless, Aadhaar-based process. It links with the Income Tax PAN and GST system to auto-fetch investment and turnover data of the enterprise.
Udyam Registration generates a permanent registration number and Udyam Certificate that contains essential business and classification details.
Who Can Apply?
Any individual or entity running a business for manufacturing, production, processing, or services can register. Eligible forms of ownership include:
- Proprietorship
- Partnership Firm
- Private Limited Company
- Limited Liability Partnership (LLP)
- Hindu Undivided Family (HUF)
- Co-operative Society
- Trust
- Any other legal entity
Required Documents for Udyam Registration
The following information is required to apply for Udyam Registration:
- Aadhaar Number of the applicant (Owner/Managing Partner/Director)
- PAN Card
- GST Number (if applicable)
- Business Name and Activity
- Bank Account Details
- Official Address
- NIC Code (industry type)
- Number of Employees
- Investment and Turnover details (fetched from PAN & GST systems)
How to Register for Udyam (Step-by-Step)
- Visit: https://udyamregistration.gov.in
- Click on:
- “For New Entrepreneurs who are not registered yet as MSME” – for new businesses.
- “For those already having registration as UAM or EM-II” – for Udyog Aadhaar migration.
- Enter Aadhaar number and verify using OTP.
- Fill business details including PAN and GST (if applicable).
- Submit the form and generate a unique Udyam Registration Number (URN).
- Download or receive the Udyam Certificate via email.
Note: There is no fee involved in registration.
Sample Udyam Certificate Includes:
- Udyam Registration Number (URN)
- Name of Enterprise
- Classification: Micro, Small, or Medium
- Type of Organization
- Nature of Activity: Manufacturing or Services
- Official Business Address
- PAN & GSTIN
- Number of Employees
- Investment and Turnover details
- Date of Registration
Benefits of Udyam Registration
Government Benefits:
- Access to various MSME subsidies and incentives.
- Eligibility to apply for collateral-free loans under CGTMSE.
- Priority in government procurement (GeM portal).
- Access to MSME support schemes such as:
- PMEGP (Prime Minister’s Employment Generation Programme)
- CLCSS (Credit Linked Capital Subsidy Scheme)
- CLCS-TUS
- Stand-Up India
Financial Advantages:
- Subsidy on interest rates
- Preference in tenders and bidding
- Faster loan approvals and credit access
- Protection from delayed payments
- Income Tax exemptions in some cases
- Reimbursement for ISO certification
Other Benefits:
- Help in obtaining various licenses and approvals
- Recognition in the banking and industrial ecosystem
- Easy integration with state-level schemes
Migrating from Udyog Aadhaar to Udyam
If you had a Udyog Aadhaar (UAM) before July 2020, you need to migrate to Udyam:
- Visit: https://udyamregistration.gov.in/UAM_Registration.aspx
- Use your old Udyog Aadhaar Number and registered mobile number.
- Fill the new form with updated PAN and GST info.
- Upon submission, you’ll receive a new Udyam Certificate.
Updating or Modifying Details
- You can edit the Udyam registration certificate (e.g., turnover, employee count, address) by:
- Logging into the portal with your registered mobile or email
- Verifying with OTP
- Submitting updated data
Udyam Verification & Renewal
- There is no need to renew Udyam Registration.
- The certificate is permanent unless the business closes or changes ownership.
- Udyam can be verified online via registration number.
MSME Schemes Linked to Udyam
Here are major schemes where Udyam registration is necessary:
| Scheme | Benefit |
|---|---|
| PMEGP | Up to ₹25 lakh subsidy for new businesses |
| MUDRA Loan | Easy loans for small businesses up to ₹10 lakh |
| CLCSS | 15% capital subsidy for plant and machinery upgrades |
| Technology Upgradation Scheme | Tech and quality upgradation grants |
| Stand-Up India | Loans for SC/ST/Women entrepreneurs |
Frequently Asked Questions
Q1. Is Udyam Registration compulsory?
Yes. If you want to access government benefits, apply for loans, or get recognized as an MSME, you must register under Udyam.
Q2. Is it free?
Yes, it is completely free of cost. No agent or fees are required.
Q3. Can one Aadhaar be used for multiple businesses?
Yes, but each business must be registered separately.
Q4. Is Aadhaar mandatory?
Yes, Aadhaar is required for the proprietor or the authorized signatory.
Q5. Do I need GST to register?
Only if your business is required by law to register under GST. Otherwise, it is optional.
Helpline and Support
- Official Portal: https://udyamregistration.gov.in
- Email: [email protected]
- Toll-Free: 1800-180-6763
- Working Hours: Mon–Fri, 9:30 AM to 5:30 PM
