Micro, Small, and Medium-Sized Enterprises is the full name of MSME. They serve as the foundation of the Indian economy and as a catalyst for the expansion and advancement of our nation. Therefore, through the MSMED Act, the government has introduced a number of programmes, subsidies, and incentives to support MSMEs. Registration with the MSME is necessary to receive these benefits. However, a lot of business owners frequently mix up MSME registration with Udyog Aadhar registration. We will talk about how the two vary in this blog.

Udyog Aadhar: What is it?

When they first start their businesses, the majority of small business owners are interested to learn what Udyog Aadhar is. You have come to the right place if you are seeking a solution to the similar problem. It is merely a government registration, nothing more. It is given as a certificate of recognition coupled with a special number. Notably, SMEs are certified by Udyog Aadhar.

The major reason for establishing this facility was to enable small business owners to gain as much as possible from government programmes. The owner, proprietor, or director of the company must furnish their 12-digit Aadhar number in order to receive benefits. Additionally, the company needs a certificate of MSME registration.

Why should you choose to register for an Udyog Aadhar?

The application for Udyog Aadhar registration is open to all company kinds, including Hindu Undivided Families, One Person Companies, Proprietorships, Partnership Firms, Limited Companies, Limited Liability Companies, Private Limited Companies, Production Companies, Co-operative Societies, and any other associations. But as a business owner, you should be aware that there are numerous requirements you must fulfil in order to qualify as a micro, small, or medium enterprise.

Therefore, you must determine whether your business meets the requirements to be classed as a micro, small, or medium organisation under the MSMED Act of 2006 before submitting an application for an Udyog Aadhar registration.

How Can Udyog Aadhar Details Be Edited?

There is no need for you to worry if you have previously applied for an Udyog Aadhar number. However, it frequently happens that a business owner will omit some information when completing the Udyog Aadhar registration form. The good news is that you have nothing to be discouraged about. To update data and make the necessary corrections, you can follow a straightforward procedure.

The Udyog Aadhar Memorandum may be modified by applicants under a new MSME Ministry provision. 

Benefits of Registering with Udyog Aadhar

Numerous benefits are available to you once you register for Udyog Aadhar. The registration process is best characterized by its ease of use and simplicity. Furthermore, there isn't even a tonne of documentation needed.

The advantages of Udyog Aadhar registration are as follows:

  • Excise waiver
  • Exclusion from indirect taxes
  • Credit-guarantee programme
  • Reduction in the cost of filing for patents and trademarks
  • Your company would be qualified to apply for numerous government programmes once registered.
  • Reduction in the cost of power

How does MSME Registration work?

Businesses that come under the MSME category must register as such. The MSME sector is thought to be the engine of the Indian economy. They drive economic expansion and support equitable development.

The majority of MSMEs in India provide excellent employment prospects, making them crucial to the Indian economy. They are extremely important to India's overall output and exports.

The MSMED Act thereby makes a number of programmes, incentives, and subsidies for them possible in order to support their development. You must be the owner of a proprietorship firm, LLP, partnership firm, private limited company, or public limited company in order to be registered as an MSME.

The meaning of MSMEs

The MSME definition for businesses engaged in the creation, production, processing, and preservation of items is as follows:

  • Micro Enterprises: A company with a maximum investment of Rs. 25 lakh in machinery and plant.
  • Small Enterprises: A company having a plant and equipment investment of more than Rs. 25 lakh but less than Rs. 5 crore.
  • Medium Enterprises: A business with investment in plant and machinery more than Rs. 5 crores but less than Rs. 10 crores.

The definition for businesses operating in the service industry is as follows:

  • Micro Enterprises: A company with a maximum investment of Rs. 10 lakh in equipment.
  • Small Enterprises: A company that has invested more than Rs. 10 lakh but less than Rs. 2 crores in equipment.
  • Medium Enterprises: A company that has invested more than Rs. 2 crore but less than Rs. 5 crore in equipment.

The advantages of MSME registration

The advantages of registering as an MSME are as follows:

  • The interest rates on bank loans are lower than those on regular ones and range from 1 to 1.5%.
  • MSMEs qualify for numerous tax breaks.
  • Obtain access to numerous government bids that are only available to MSME businesses.
  • Obtaining simple company financing.
  • Patents can be created after registration at a lower cost.
  • Government license and certification applications for registered enterprises are given preference.


Suggested Read: Print MSME Registration Certificate