In a bid to simplify and streamline the registration process for Micro, Small, and Medium Enterprises (MSMEs) in India, the government has introduced a new registration system called Udyam Registration. This system replaces the earlier Udyog Aadhaar registration process. In this article, we will explore the significant differences between the old Udyog Aadhaar and the new Udyam Registration Portal process, highlighting key changes and updates.
1. Aadhaar vs. PAN as Primary Identification
Udyog Aadhaar (Old): The Udyog Aadhaar registration primarily relied on the Aadhaar number of the business owner or authorized signatory as the unique identifier.
Udyam Registration (New): The new Udyam Registration process has shifted to using the Permanent Account Number (PAN) of the business entity as the primary identification. This change simplifies the process for businesses that may not have an Aadhaar card for their owners or authorized signatories.
2. Classification Criteria
Udyog Aadhaar (Old): Under the Udyog Aadhaar system, MSMEs were classified based on their investment in plant and machinery or equipment, along with their self-declared turnover.
Udyam Registration (New): The Udyam Registration introduces updated classification criteria for MSMEs. These classifications are as follows:
- Micro Enterprises: Investment in plant and machinery or equipment ≤ Rs. 1 crore and turnover ≤ Rs. 5 crore.
- Small Enterprises: Investment in plant and machinery or equipment ≤ Rs. 10 crore and turnover ≤ Rs. 50 crore.
- Medium Enterprises: Investment in plant and machinery or equipment ≤ Rs. 50 crore and turnover ≤ Rs. 250 crore.
Related Read: MSME Udyam Registration: Environmental Sustainability and Green Initiatives
The new criteria provide more clarity and align with international standards.
3. NIC Code Selection
Udyog Aadhaar (Old): The old Udyog Aadhaar required businesses to select an appropriate National Industry Classification (NIC) code to describe their business activity.
Udyam Registration (New): The Udyam Registration process retains the NIC code selection but introduces additional validation. Businesses must choose the NIC code that best matches their activities, ensuring greater accuracy in classification.
4. Online Registration Portal
Udyog Aadhaar (Old): Udyog Aadhaar registration was conducted through the Udyog Aadhaar portal.
Udyam Registration (New): The new Udyam Registration is facilitated through the dedicated Udyam Registration portal at https://udyam-registrations.org/. This portal offers a user-friendly interface and comprehensive guidance.
5. Annual Turnover Self-Certification
Udyog Aadhaar (Old): The old Udyog Aadhaar system did not explicitly require MSMEs to self-certify their annual turnover.
Udyam Registration (New): Under the new Udyam Registration, MSMEs are required to self-certify their annual turnover based on their previous year’s financial performance. This ensures transparency and compliance with the prescribed criteria.
6. Renewal Process
Udyog Aadhaar (Old): The Udyog Aadhaar certificate had a lifetime validity, meaning businesses did not need to renew it.
Udyam Registration (New): Udyam Registration certificates require periodic renewal. MSMEs must review and update their information, ensuring that it remains accurate and up-to-date. Failure to renew can lead to the expiration of benefits.
Also Read: Udyam Registration Benefits in Hindi
Conclusion
The transition from Udyog Aadhaar to Udyam Registration represents a significant shift in the way MSMEs are registered in India. The new system aims to enhance accuracy, transparency, and compliance while simplifying the process for businesses. Understanding these key changes is crucial for MSMEs to navigate the registration process effectively and access the numerous benefits and support offered by the government to foster their growth and development.
