Know The Difference Between MSME And Udyog Aadhar
A nation’s economy is driven by MSMEs (Micro, Small and Medium Enterprises), which also create jobs and ensure a fair distribution of the nation’s income in addition to generating money. There were around 8 million MSMEs operating in India as of 27 March 2023, and with the support of the government’s programme, they had the potential to significantly increase industrialization in the nation.
The Indian government has made numerous efforts in recent years to revive small enterprises, including offering security for MSME loans. The Udyog Aadhar registration project is one of the most recent endeavors in this approach.
The Udyog Aadhaar certificate is extremely similar to another provision that already exists, called MSME registration, but they are not precisely the same.
The distinction between Udyog Aadhar and MSME (Micro, Small, and Medium Enterprises) registration must therefore be unclear to a layperson. To comprehend the distinctions between Udyog Aadhar registration and MSME registration, let’s examine their features, processes, and advantages.
Table of Contents
Udyog Aadhar: What is it?
In essence, Udyog Aadhar is a government registration process that issues a registration certificate for your business together with a special number known as your Udyog Aadhar number. This programme is primarily designed for SMEs. Udyog Aadhar’s objective is to provide businesses with unrestricted access to government programmes.
The best way to sign up for Udyog Aadhar?
There are a few simple actions to take in order to register for Udyog Aadhar and benefit from all of its features. The UAM, a self-declaration form, is the essential component of this straightforward procedure. Here is the full procedure for
- You can fill out the one-page form offline or online. You can go to the government’s official MSME website to register online.
- In the event that you want to register for several industries, use individual registration.
- Your business, business activity details, bank information, employment and ownership details, etc., must all be self-certified on the form.
- There are no costs associated with submitting this form.
- After you submit the form, a registration number and the specific Udyog Aadhar Number (UAN) of your business will be generated and mailed to you.
You will obtain an Udyog Aadhar certificate once your Udyog Aadhar verification is complete, which will enable you to access perks like simple MSME loans.
Benefits of registering for Udyog Aadhar
- One of the key advantages of registering for Udyog Aadhar is that you can take advantage of many government programmes, including microloans for small businesses, unsecured loans for MSME, discounted rates, simple loans, etc.
- You can benefit from financial assistance for attending international expos.
- Current bank account opening will be simplified.
- Your ability to avoid paying excise and indirect taxes is one of the main advantages of using Udyog Aadhar.
- Lower fees will apply when you apply for patents and trademarks.
- Holders of Udyog Aadhar certificates would also get discounts on their electricity bills.
Update and correction for Udyog Aadhar
You can amend the information to add a new firm or make changes once your Udyog Aadhar verification is finished. The steps to update and correct your Udyog Aadhar are listed below:
- Visit the Udyog Aadhar website and log in using your credentials.
- Select “Update Udyog Aadhar” from the menu. It will take you to a different website.
- Enter your Udyog Aadhar number on the new website, then select the option to send an OTP to the registered email address or mobile number.
- The OTP must be entered along with the verification code shown on the page. You will be taken to another website as a result.
- You can add or change information on this new page, such as the company’s name and address. Click “submit” once the information has been updated.
- You will be given an acknowledgement number after pressing the submit button, which you can use to check on the progress of your Udyog Aadhar update request.
Your Udyog Aadhar certificate will display the updated/corrected information once the update and correction process is finished.
This new project aims to give business owners a superior option to Udyog Aadhar registration and MSME.
Now that you are aware of Udyog Aadhar, let’s take a closer look at MSME registration to better understand how Udyog Aadhar and MSME differ from one another.
How does MSME registration work?
The MSMED Act provides many initiatives, subsidies, and incentives to support MSMEs, which are the foundation of the Indian economy. Although it is not required, you must register your MSME in order to take advantage of advantages.
Steps for registering an MSME
- Name of the company, registration number, GST number, and other pertinent information should be entered on the application.
- Include a photo and all of your personal information, such as name, bank information, address, and PAN.
- An official executive will evaluate and examine your application; if there are any differences, they may ask you to make modifications.
- You will shortly obtain your digital MSME registration certificate after that is finished.
Advantages of registering as an MSME
The following advantages are available to holders of an MSME registration certificate:
- Access to every programme of the federal and state governments.
- Simple access to subsidies, MSME loans, various business loan kinds, etc.
- An opportunity to obtain a bank loan at a cheaper interest rate (1% to 1.5%).
- Advantages of tax refunds.
- Government tenders are now open to the public, especially to MSMEs.
- lower costs for patent registration.
- Preference for official certifications and licences.
Differences between MSME and Udyog Aadhar
Although the registration procedures for Udyog Aadhar and MSME are relatively similar, they are two separate programmes. The Udyog Aadhar can be a quick way to register an MSME. So, as soon as you have your 12-digit Udyog Aadhar number, you may quickly apply for MSME registration. It would be a good idea to complete both the MSME and Udyog Aadhar registrations in order for your company to reap the most benefits.