Difference between Udyog Adhaar and Udyam Certificate

The economy of India is dependent upon a dynamic market, yet it is going strong. It has a total GDP of $ 3.38 trillion. Big businesses and unicorn startups contributed to this growth, playing a major role in this strong driving force to make India rise in terms of economy. However, along with these big players, medium-sized businesses also have a major impact on the economy of India. These silent entities neither get shown in magazines like FORBES, nor in the media, but without them, India will be left trailing behind forever. 

In this blog, learn about the udyog aadhar and udyam certificate with much emphasis on how they differ from each other.
 

Government Initiatives and Udyam Registration

MSMEs (Micro, Small, or Medium Enterprises) contributions include a massive 30% share of India’s GDP, 48% of all exports, and 45% of all production or output. With such an impact, these business entities are surely on the path to a self-reliant India. 

The Government of India understands the significance of this sector. Thereby, forming many schemes and policies for the help and development of MSMEs. One such important initiative is the udyog aadhar and udyam portal. These were created to provide hassle-free and time-efficient registration of new businesses in India.  Under the Udyam registration online, the process holds importance to connect to small and medium-sized businesses in the country and promote their development. 
 

How big is the MSME sector?

The MSME consists of three types of businesses which differ with respect to their sizes. They are Micro, Small, and Medium businesses. The number of MSMEs in India has a high growth rate. With a current projection of 6.3 crore, it is projected to achieve around 7.5 crore soon, which means a growth rate of about 2.5%.  Meanwhile, in FY19-FY22, the growth number increased at a rate of 18.5%.  Furthermore, the external investment in this sector reached  $ 492.96 billion in FY22. 

For being  classified as a Micro, Small, or Medium, enterprise, there are certain data which needs to be marked, and are listed below.

The MSMEs occupy a major portion of the whole business shares of India. Now, let us see no. of businesses registered in each category.
 

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About Udyog Aadhar

Udyog Aadhar certification presents registered businesses with a Unique Identification Number. This is generated through an online process simplifying business registration. Launched way back in September 2015, its working principle is similar to the normal citizen Aadhar card which provides a unique identification number for individuals. Along with identifying small businesses throughout the country, this also paves the way for help and benefits of various Govt. Schemes to such businesses.

The udyog aadhar certificate is known for its easy registration and has been serving MSMEs with Govt. schemes and subsidies. This can get many benefits and Govt. schemes for their business. It had a total of 48 lakh MSMEs registered under it previously.

Prime Features of Udyog Aadhar

The important features related to udyog aadhar are given below:

Alt Text- Udyog Aadhar 

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Registration Criteria: The Udyog Aadhar registration is based on classifying businesses with respect to their investment in different factories, equipment, services, and so on. 

Process for registration: The registration process is online and done on the e-Udyog Aadhar website. Requirements for registration are basic information like Name, Address, Aadhar card, Business name, and investment proof. 

Period of Validity:  The aadhar udyog card can serve up to a period of five years. After which, a renewal is required.

Udyog Aadhar Benefits

One can have many benefits with udyog aadhar certificate, some of them are -

Smooth Registration: The registration process for udyog aadhar is a low-requirement one. It just requires some basic information and document proof. This facilitates better user experience thereby increasing the no. of users.

Financial Help: With the udyog aadhar card, comes access to various Govt. schemes and policies which can often include financial aid or Govt. subsidies.

Business simplified: The unique identification number allows businesses to carry out different business-related procedures in a hassle-free way.

About Udyam Certificate

The Udyam Certificate has a similar work function. The Udyam Certificate provides several benefits to businesses, which can be availed by getting this certificate through an online registration process.

Features of Udyam Certificate 

Here are the features of Udyam Certificate:
 

Alt Text- Udyam Certificate

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Classification of businesses: The Udyam certificate is the replacement for Udyog Aadhar classifies businesses based on their investments in services, factories, and also their turnovers. 

Registration: A Udyam Aadhar new registration requires simple information like Name, address (personal and business), PAN card number, business name, the business investment made, and so on. It is an easy process.

Period of Validity: The Udyam Certificate remains valid for a lifetime from the day of udyam verification. It only gets invalid if the business breaks the bench limit that was specified for its category. 

Udyam Certificate Benefits

Access to Govt. schemes: The Udyam Certificate brings various Govt. schemes and policies along with it to its users. These can come in the form of subsidies, tax exemption schemes, loans, etc.

Better credibility: While doing business, maintaining credibility is very important. Registering businesses on Govt. portals like Udyam increases the genuineness of a business, thereby allowing better deals with better companies and customer trust.

Eased business processes: The unique identification number provided with the Udyam certificate eases various lengthy business procedures. This saves time by giving businesses a better identity. 

Difference between Udyog Aadhar and Udyam Certificate?

Udyam Certificates are to an extent same as udyog aadhar, yet a little bit different.  Although both certificate serves the same purpose, there is a difference, some of them are listed below. 
 

Udyam Registration Statistics

From its inception as aadhar udyog certificate in 2015, the udyam certificate reportedly showed a massive rise in users. The Udyam Portal holds a total of  80,16,195 registered MSMEs as of 31 March 2022. Of all, the number of registrations is divided into categories like Micro, Small, and Large in the following ways:

Source (approx)

This amounts to  76,27,054 (95.15%) in the Micro sector, 3,53,243 (4.41%) in the Small sector, and 35,898 (0.45%) in the Medium Sector. 

Investment in MSMEs in 97% is below Rs. 50 lakh. The investment values of various MSMEs registered on the Udyam Portal are specified in the table below: 
 

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 No. of registrations divided between Udyog Aadhar and Udyam Certificate

The total no. of registration in Udyam portal from 2015 to 2022 was 80 lakhs (approx). Among this, 48 lakh MSMEs were registered on the Udyog Aadhar portal. That makes 52 lakh new registrations on the Udyam portal. Here is a graphical representation: 

How to register at Udyam Portal online?

The udyam certificate verification can be done by going through the registration process as mentioned below:
 

1. Go to the Govt. site of E-udyog adhar.
2. Enter personal details like name, address, aadhar card number, and others as mentioned there.
3. Next, give your business name and address. The address should be the place of operation of your business.
4. Type in other business and finance details like PAN number and bank account details (IFSC code and account number).
5. Specify the number of employees and total investment in the business.
6. Verify the details entered and submit
7. Once done, an OTP will be delivered to your mobile number.
8. In the end, you will receive a unique identification number.

Bottom Line

The Udyog Aadhar and Udyam certificates are both essential for the numerous MSMEs in India. These programs provide identity and recognition to such businesses along with a long line of other benefits. The difference between the two is not much, udyam certificate being a modified version of udyog aadhar. However, in this blog, these differences were well specified along with approved statistics, so that you can choose which one best suits your business. 

Once you get registered for Udyam, the next step is also important. Filing Buddy helps you make a better decision by providing hassle-free taxation, registration, and compliance services. Choose Filing Buddy for business growth and an efficient financial workflow.