Many people are confused about the two terms. We have to resolve this query by first explaining how the terms come up and why there was a change in the term. Following this we provide the udyam registration portal, and the benefit. Then finally we enlighten our readers on the difference between both the terms.
Evolution and Meaning
The government of India initiated Udyam registration as a substitute to the earlier process of Udyog Aadhaar to make it easier for MSMEs to register with the government portal. With this, every new business in India can register easily without going through a lengthy process and saving time.
Earlier, the process of registration could have been shorter and more precise. The person registering for the same had to go through many categories and documents, requiring a lot of paperwork. This new process allows anyone to register easily in a single window without needing extensive documents or paperwork.
The Udyam Registration Portal and Its Benefits
The Udyam registration scheme was introduced by the government of India on 1 July 2020. This step was an extension of the Atmanirbhar Bharat Scheme of the government. The predecessor of Udyam registration was the Udyog Aadhaar portal, whose shortcomings were corrected by this new portal.
Registering your business in the MSME portal is very important to get the benefits from the business-related schemes of the government. However, due to discrepancies in the older process and its time-consuming nature, the business persons needed clarification on how and if they should register.
With launching the Udyam registration portal, registering your business as an MSME has become very easy. You only need to submit your Aadhaar card and fill out a single-page form to initiate the registration process. You can do it through the online portal while sitting at your home or through a single window in the Aadhaar offices.
This has enhanced the ease of doing business- which is one of the government’s goals. It is a fast and smooth process with which any person can register their business into this portal within minutes.
Benefits of Udyam Registration
With Udyam registration come many benefits for the businesses, such as:
- Businesses can take advantage of pre-existing and new government schemes.
- The MSMEs are provided with complimentary or 100 per cent subsidized bank loans.
- You are offered protection against delayed payments or default payments of loans.
- Payments are made through ISO Certified payment modes, and thus the security of the payments is ensured.
- The business infrastructure, such as factories, shops, etc., receives electricity and water bill discounts.
- Subsidies are provided for many government-related and other expenditures, such as:
- GST Returns
- Income Tax
- Patents
- Licensing
- Bank loans
- Registration of Barcodes, etc.
As we have read above, Udyam registration, which is the new process of MSME registration, has made the process more accessible than it was earlier at the time of Udyog Aadhaar registration.
Classification of companies: With the new process, a company is now classified based on various factors into three types, which are:
- Micro enterprises: This includes the companies whose total investment exceeds 1 crore rupees (including machinery and equipment) and whose total turnover is at most 5 crore rupees.
- Small enterprises: Where the investment is at most 10 crores and the turnover is at most 50 crores.
- Medium enterprises: The investment is at most 50 crores, and the turnover is at most 250 crores.
Difference Between Udyog Aadhaar and Udyam Enrollment
- With the onset of Udyam registration, registering your business has become a free-of-cost process. There is no paperwork involved in doing so.
- The portal of Udyam registration is completely integrated and registered. On the other hand, Udyog Aadhaar is not integrated with the Gem portal or any other government portal, for that matter.
- Registering with Udyog Aadhaar requires the person’s Pan Card and Aadhaar Card. However, while registering with Udyam registration, you only need the applicant’s Aadhaar card.
- The form you need to fill out while registering with Udyog Aadhaar is small and short compared to the form in Udyam registration, which asks you for details such as GST, Income Tax, etc.
- While an Aadhaar card linked to a genuine mobile number is required for registration with Udyam Aadhaar, one can apply through Udyog Aadhaar without having an Aadhaar Mobile Link Facility.
- Udyam registration allows one person with an Aadhaar card to register for one firm only. However, with Udyog Aadhaar, you can register multiple firms with one Aadhaar only.
- There needed to be more clarity caused in the previous process of Udyog Aadhaar, which led to mistakes and, finally, the rejection of the certificate. But the new process of Udyam registration is quite easy, with minimal scope for errors.
With the form of Udyam registration, you have to make a self-declaration, entering data such as reality, ledger subtleties, and the Aadhaar-related information of the proprietor. You can fill out this form on the portal of Udyam registration through your mobile phone, laptop, or any other mode, without paying any fee.
After submitting the form, you will receive an Udyam certificate at the email address that you have mentioned in the form. You will find a unique Udyam Registration Number (URN) for your business, which will be the ID that will help you receive all the benefits from government schemes related to MSMEs.
However, Udyam registration is a new and updated process, which has fixed many previous system errors that made things difficult for the applicants.
Also, Read the following:
- Document Required for Udyam Registration
- MSME Udyam Registration Web-Portal
- Udyam Registration Penalty
- Request Aadhaar Validation Letter
- Complete the steps for Udyam Certificate Download
