Udyog Aadhar Replaced! Understanding the New Udyam Registration System

The MSME sector is the backbone of India's economy. The government has made its share of attempts towards encouraging small companies and bringing them into the formal economy. One such was replacing Udyog Aadhaar with Udyam Registration.

In this article, we will describe in detail why Udyog Aadhaar was phased out, how the new system of Udyam Registration functions, and how it is advantageous to the owners of MSMEs. 

Udyog Aadhaar was an identification number granted to MSME enterprises. It was a 12-digit unique identification number with which small enterprises could avail schemes of the government, subsidies, and other advantages.

But with time, the system was being tested on numerous fronts—like outdated information, fraudulent registrations, and no verification. Due to this, the government launched a fresh and more digital system, i.e., "Udyam Registration.

The government introduced the Udyam Registration system on 1st July 2020. Its purpose was to make the MSME registration easy, transparent, and online.

The primary motives for launching Udyam Registration were:

Udyam registration is an entirely online procedure, which is executed on the Udyam registration portal 

Step-wise procedure is as below:

There are numerous significant advantages of the new system for MSME companies.

After Udyam Registration, you can access schemes such as the Prime Minister's Employment Generation Programme (PMEGP), Micro Units Development Scheme (MUDRA), and Credit Guarantee Scheme conveniently.

Udyam Certificate makes MSMEs eligible for collateral-free loans (guarantee-free loans). Interest rates are also subsidized.

MSME businesses receive preference in the government. Tenders. Your bid also receives preference along with the Udyam Certificate.

Data in the new regime is linked to the PAN and GST records to prevent any spurious registrations.

No regular renewal is to be done as before. Registered, your Udyam number now becomes permanent.

If you are already using Udyog Aadhaar, you must upgrade to the new regime.

Upgrade Process:

You Can Apply for Udyam Annexure Download Through Udyam Portal

This Udyog Aadhaar to Udyam Registration scheme is a new, online procedure for India's MSME segment. 

Companies no longer have to deal with any convoluted processes—everything is online, quick, and safe. 

If you haven't already registered your MSME Udyam, register it today at the official portal.