Is Udyam Registration & MSME Registration the same

Understand the differences and the similarities between udyam registration & msme registration with the table. Learn about the Documents, Integration, Certification & the number of registrations.

15 Apr,2024 06:06 IST 302
Is Udyam Registration & MSME Registration the same

Running an MSME (Micro, Small, and Medium Enterprise) in India involves going through countless government-related procedures. While navigating through, you must have come across terms such as Udyam and Udyog Aadhar. But you must be wondering whether Udyam and MSME are the same or is there a difference? First, let's understand what each term means and how they are linked to the country’s MSME landscape.

What is MSME Registration?

MSME registration is a process for Indian Micro, small and medium enterprises to gain official recognition from the government so that they are eligible for multiple benefits and initiatives from the government. These initiatives are designed to support the growth of MSMEs in the country.

What is UDYAM Registration?

The Udyam registration is a mandatory certification provided by the Ministry of Micro, Small and Medium Enterprises which the respective MSME receives after signing up on the official government portal. Post registration the enterprise receives a unique twelve digit Udyam Registration number (URN) which can be used by the enterprise to avail of various government subsidies, schemes and incentives.

Now let’s discuss the Difference between Udyam and MSME registration:

The Government of India had first launched Udyog aadhaar for MSMEs to register their businesses. But owing to the complexity of the registration process, Udyam became the new portal for MSME registration from July 2020 onwards. So the Udyam registration MSME portal is the single online platform for MSME registration.

Before the introduction of Udyam, registration for MSME was managed at the state level, necessitating manual completion of documents for obtaining MSME or SSI (Small Scale Industries) registration. The MSMED Act of 2006 marked a significant shift with the implementation of EM-1 and EM-II, facilitating the gradual transition of the MSME registration process to an online platform, ensuring accessibility from any location at any time.

Sapna aapka. Business Loan Humara.
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Udyam Registration Vs MSME Registration

  Udyog Aadhar/MSME Registration Udyam Registration MSME Portal
Registration Process
  • Can be done Online/Offline
  • Aadhaar & PAN Card is mandatory
  • Online
  • Mobile-linked Aadhaar Card
  • PAN Card (Later)
  • One page form
  • Self-certified Details
  • Longer Form
  • Self Declaration
Documents Udyog Aadhaar Memorandum (UAM) Certificate No documents required
Integration Not integrated with other government portals Linked to GST and IT portals
Certification Post-verification Udyog Aadhaar Certificate is received Udyam Registration Number (URN) along with e-certificate of Udyam Registration
Re-Registration Businesses that had registered themselves on Udyog Aadhar should migrate and re-register themselves on Udyam No re-registration required
Number of Registrations Multiple registrations allowed (industry-specific) Single registration allowed

Is Udyam Registration and MSME Registration the same?

Essentially both MSME registration and Udyam Registration are more or less the same with minor changes here and there.

Here’s the breakdown:

- MSMEs refer to the government classification of micro, small, and medium entities based on their respective investments and turnovers.

- Udyam Registration is the current online portal dedicated to SMEs and was launched in 2020 to register a business in the MSME sector. It replaced the earlier Udyaog Aadhaar Registration System.


All said and done, the Udyam portal has been nothing short of a boon to entrepreneurs across India. It has replaced the complex Udyog Aadhaar/ MSME registration of earlier days. The user-friendly online platform has significantly simplified the process for Indian businesses to gain recognition as MSMEs opening doors to a wide range of government support programs designed to fuel your growth. From accessing financial aid and securing loans at competitive rates to participating in exclusive tenders and benefiting from tax exemptions, these initiatives empower you to translate your entrepreneurial dreams into a thriving reality.

Remember, the success of MSMEs is a cornerstone of India's economic progress. Don't hesitate to take the first step towards achieving your ambitions – register your MSME today and unlock the potential for remarkable growth!

Don't let limited capital hold you back.

In case you are looking for a business loan, Visit IIFL Finance today!


Q1. Is Udyam registration mandatory for MSMEs?

Ans. No, it is not mandatory at all. However, it's highly recommended to get your business registered on the government portal as you stand a chance to avail numerous benefits offered by the government, namely easier loans, subsidies, participation in government tenders, and tax exemptions.

Q2. How is Udyam registration different from MSME registration?

Ans. Udyam registration and MSME registration are technically the same thing. It's just that the older Udyog Aadhar registration system has now been replaced or migrated to Udyam Registration and is considered as the **current online portal** launched in July 2020 for registering your business as an MSME. So, simply put, registering on the Udyam portal is a way to get officially recognized as an MSME.

Q3. Can an MSME switch from MSME registration to Udyam registration?

Ans. There's nothing like "switching" as Udyam registration is the current system. If you had previously registered under Udyog Aadhar, it's not required to re-register under the new Udyam portal. Your existing registration will be automatically recognized on the Udyam portal.

Q4. Are there any changes in the eligibility criteria for Udyam registration compared to MSME registration?

Ans. No, the eligibility criteria for being recognized as an MSME is the same as earlier, which is a classification based on the investment in plant & machinery (manufacturing) or equipment (services) and the annual turnover of the business.

Q5. Is there a difference in the registration fees between MSME registration and Udyam registration?

Ans. No, there is no difference in fees. Both MSME registration (through Udyog Aadhar) and Udyam registration are completely free and paperless processes.

Sapna aapka. Business Loan Humara.
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