UDYOG AADHAR REGISTRATION

What is Udyog Aadhar and why was it introduced for MSMEs?

Udyog Aadhar was a unique identification number provided by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, to businesses falling under the MSME category. It was introduced in September 2015 with the objective of simplifying the registration process for small businesses and startups.

Before the introduction of Udyog Aadhar, MSMEs had to deal with complex paperwork and multiple forms to register under different categories and schemes. The Udyog Aadhar system allowed business owners to self-declare their business information through a simple, online process without needing to submit documents physically. The registration process required only Aadhar number and basic business details, and upon successful registration, a unique 12-digit Udyog Aadhar Number (UAN) was issued.

The main goal of introducing Udyog Aadhar was to encourage more MSMEs to formalize their operations and become eligible for various government benefits, such as priority sector lending, subsidies, loan schemes, and participation in tenders.

While Udyog Aadhar was a significant step toward MSME digitization, it has now been replaced by the Udyam Registration system, which is more advanced and aligned with the latest MSME classification norms. However, its contribution to MSME formalization and ease of doing business was substantial during its time.

How does Udyog aadhar differ from the current Udyam Registration system?

While both msme registration and Udyam Registration aim to register Micro, Small, and Medium Enterprises (MSMEs) and provide them with various benefits, there are several key differences between the two systems in terms of structure, data validation, and compliance:

Basis of Classification:

Udyog registration categorized enterprises solely based on their investment in plant, machinery, or equipment.

Udyam Registration, introduced in July 2020, classifies enterprises based on both investment and annual turnover, in accordance with new government norms.

    Verification Process:

• Udyog registration was largely self-declared, meaning users did not have to submit any proof during registration.
• Udyam Registration requires validation through integration with Income Tax and GST databases, making it more transparent and accurate.

    Documentation:

• Udyog registration only required an Aadhar number for registration.
• Udyam Registration still requires Aadhar, but also pulls in data automatically from PAN and GST systems.

   Validity and Compliance:

• Udyog registration is now discontinued, and all businesses are encouraged to migrate to Udyam Registration.
• Udyam is the only valid MSME registration system as of now, with benefits linked to the updated database.

  Ease of Update:

• Updating Udyog registration details was limited and sometimes required offline processes.
• Udyam allows for online updates and reclassification automatically based on dynamic data.

In summary, Udyam Registration is more robust, data-driven, and compliant with modern requirements, while Udyog Aadhar was a simpler, self-declared system designed to ease initial registration.

Is Udyog Aadhar still valid after the launch of Udyam Registration?

No, Udyam registration is no longer valid for official purposes after the launch and enforcement of the Udyam Registration system in July 2020. The Government of India has clearly stated that all existing Udyog Aadhar Memorandums (UAMs) must be migrated to Udyam Registration to continue availing MSME benefits such as subsidies, schemes, tenders, and financial aid.

While Udyam registration served as a useful identification system for MSMEs from 2015 to 2020, it was replaced due to the need for a more accurate and data-integrated system that aligns with updated enterprise classifications (based on both turnover and investment). As of now:

• New MSME registrations can only be done through the Udyam Registration portal.
• MSMEs with a valid Udyam registration number are advised to re-register on the Udyam portal using their Aadhar and PAN details.
• Many government departments and banks have stopped accepting Udyog Aadhar certificates and now only consider Udyam Registration certificates for official purposes.

However, for reference purposes or historical recordkeeping, the Udyam Aadhar number may still be used internally. But to remain eligible for ongoing schemes and compliance requirements, migrating to Udyam Registration is mandatory. It is also free of cost and can be done online in a few steps via the Udyam portal.

How can I check the status of my Udyog Aadhar registration?

To check the status of your Udyam registration, you can visit the official Udyog Aadhar. (Note: This site may now redirect to the Udyam portal due to the transition). Here’s how you can check your Udyog Aadhar status:

Steps to Check Udyam registration Status:

1. Go to the Udyog Aadhar status page.
2. Enter your Udyog Aadhar Memorandum (UAM) number.
3. Provide the registered mobile number or email ID used during registration.
4. Enter the captcha code displayed.
5. Click on the “Validate and Generate OTP“ button.
6. Enter the OTP received and submit to view your status.

The system will then show your registration details, status (active/inactive), and associated enterprise data.

However, since Udyog Aadhar has been phased out, status-checking functionality may be limited or unavailable. In such cases, it is recommended to migrate your business to Udyam Registration and use the Udyam portal to check registration, download certificates, or update business details.

If you face issues accessing your Udyog Aadhar record, you can also contact MSME helplines or use the grievance redressal mechanisms available on the MSME website.

Can I update or correct details in my Udyog Aadhar certificate?

Yes, during the active period of the Udyam registration system, you could update or correct the details in your Udyog Aadhar certificate by visiting the official Udyog Aadhar portal. The process was relatively straightforward and involved logging in with your Udyog Aadhar Number and OTP verification sent to your registered mobile number.

Details that could be corrected included:

• Business name
• Address
• Type of organization
• Nature of business activity
• Investment or employee numbers
• Contact information

However, since the launch of the Udyam Registration portal in July 2020, the Udyog Aadhar system has been decommissioned, and most of its functions (including updates and corrections) are no longer active.

If you wish to update or make corrections to your old Udyam registration, the best approach is to migrate to Udyam Registration. Once you’ve registered under Udyam using your Aadhar and PAN, you’ll be able to:

• Access a centralized dashboard.
• Update your enterprise details.
• Benefit from real-time integration with GST and Income Tax systems.

In short, updating an old Udyam registration certificate is no longer supported, and all MSMEs should move to the new Udyam system for any future changes or to remain eligible for MSME benefits.