Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s economy. To support their growth, the government introduced a simple online process called MSME Registration. However, in July 2020, the Ministry of MSME replaced the old system (Udyog Aadhaar/MSME Registration) with a new platform known as Udyam Registration. Many entrepreneurs are still confused between the two terms. This blog will help you understand the key differences between MSME Registration and Udyam Registration, and also guide you on how to get and apply for it.
MSME Registration was the earlier system where small businesses and startups could register under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. It helped businesses avail government benefits such as:
MSME Registration was done online through the Udyog Aadhaar Memorandum (UAM) portal using basic details like Aadhaar and PAN.
Udyam Registration is the new system introduced by the Government of India in July 2020. It replaced the old MSME Registration process. Now, businesses need to register only on the official Udyam portal using their Aadhaar and PAN details. Key features include:
Fully paperless and online registration
| Aspect | MSME Registration (Old) | Udyam Registration (New) |
|---|---|---|
| Portal | Udyog Aadhaar (UAM) | Official Udyam Portal |
| Certificate | Udyog Aadhaar Memorandum | Udyam Registration Certificate |
| Validity | Required renewal | Lifetime validity |
| Verification | Manual and self-declared | Linked with Aadhaar, PAN, GST for real-time verification |
| Cost | Free | Free |
| Process | Relatively lengthy | Fully online and automatic |
Earlier, businesses could get MSME Registration by visiting the Udyog Aadhaar portal and submitting details such as Aadhaar, PAN, business name, bank account, and investment/turnover details. After submission, an MSME Registration Certificate was issued.
⚠️ Note: This system is no longer active. Existing MSME Registration holders must migrate to Udyam Registration.
If you are planning to register your business in 2025, you need to apply under Udyam Registration. Here are the steps:
The government introduced Udyam Registration to simplify the process and make it more transparent. Linking with Aadhaar, PAN, and GST ensures authenticity and prevents duplication of registrations.
If you already had MSME Registration (Udyog Aadhaar) before July 2020, you must migrate to the Udyam Registration portal to continue receiving benefits. For new businesses in 2025, only Udyam Registration is valid.
While MSME Registration was the older system, Udyam Registration is now the only valid and recognized process for small businesses in India. By registering under Udyam, entrepreneurs can enjoy a hassle-free experience, lifetime validity, and seamless access to government schemes.
If you are still using your old MSME Registration certificate, it is highly recommended to migrate to Udyam Registration immediately to avoid losing benefits.
To learn more about MSME Registration & Udyam Registration in India, we recommend you to visit Metacorp as it solve legal and compliance issues of new and established businesses.
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