How Udyam Registration Simplifies MSME Identification More than Udyog Aadhar
Indian Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the country's economy. For decades, however, government recognition, access to schemes, and access to finance were aches for these companies.In view of this issue, the government introduced "Udyam Registration," which was a replacement of the centuries-old "Udyog Aadhaar" scheme.This new system not only facilitates the identification of MSMEs with ease but also computerizes the entire process, making it transparent and convenient. Let's see how Udyam Registration has facilitated the identification of MSMEs with ease and why it is better than Udyog Aadhaar.
1. Simple and Fully Online Process
Udyam Aadhaar: Previously, there were multiple steps for registering MSMEs. Companies had to prepare multiple documents, and it was slightly technical in nature. Udyam Registration: All online now. You simply need to provide your Aadhaar number, company details, and some basic details. No long forms, no paperwork.
You can get an MSME identity in minutes.
Benefits: Easy and convenient registration process.
2. No document upload
Companies used to have to upload various documents during the Udyog Aadhaar process, such as bank accounts, PANs, and business addresses. Since the system is receiving information directly from government records such as Aadhaar, PAN, and GSTIN, all of that is avoided under Udyam Registration.
Benefits: It is absolutely a paperless process and does not require any scanning or uploading.
3. Automated verification and transparency
Udyog Aadhaar was delaying verification of information in a few cases, and it was taking time for applications. The Udyam Registration portal, on the other hand, gets reconciled automatically with government records. This practically rules out the possibility of misinformation or forgery.
Benefits: quick verification, accurate information, and complete transparency.
4. Permanent Identification Number – Udyam Number
Each of the Udyog Aadhaar registration to date had a 12-digit Udyog Aadhaar
number uniquely allocated to each.
Now, after you have Udyam registration, you possess a valid for life 19-digit "Udyam
Registration Number."
Benefits: Every MSME is assigned a permanent and unique identity
5. Integration with Integrated Government Data
The Udyog Aadhaar system was integrated with some select government portals.
Although Udyam registration is otherwise directly linked to the Income Tax Department,
GST, and PAN, it is now simpler for the government to keep track of MSME data and
provide benefits to the right companies directly.
Benefits: Simple access to government loans, subsidies, and schemes.
6. Business Classification Transparency
MSME classification (Micro, Small, Medium) under Udyog Aadhaar was manual-based
on investment and turnover, and this may lead to mistakes.
Under Udyam Registration, the computer itself classifies based on your GST and
income tax details.
Benefits: No errors, completely reliable classification.
7. Simple Access to Loans and Subsidies
Collateral-free loans and interest remissions by banks and the government are one of
the most significant benefits of MSME registration.
Banks used to keep on holding up sanctioning applications previously under Udyog
Aadhaar.
Now, Udyam Registration is directly linked to SIDBI as well as bank accounts, so it is
easy and fast for MSMEs to receive financial help.
Benefits: Easy subsidy process and quick loan approval.
8. Easy Modifications and Updates
Updating information in Udyog Aadhaar was restricted.
You can now update your firm's information online at any time, such as your address,
number of employees, and turnover, through the Udyam Registration portal.
Benefits: Information is consistently the latest and correct.
9. Single-Click Certificate Download and Verification
MSME certificate downloads of Udyog Aadhaar were formerly undertaken through
another portal and sometimes experienced OTP verification problems.
You can download the Udyam Registration Certificate from the portal at any moment,
and you can even verify it online.
Benefits: The certificate is easily accessible and verifiable at all times without any
trouble.
10. One-Step MSME Identification
MSME identification under Udyog Aadhaar has taken a few additional steps.
Now, with Udyam Registration, you are not only an MSME, but your business's entire
basic information also gets automatically registered in government databases.
Benefits: One-time registration, lifetime certification.
Conclusion
The government's intention was always to make the MSMEs stronger and propel them
onto the online platform.
Udyam Registration is a big step in that direction, abolishing the restrictions of the
earlier Udyog Aadhaar scheme and making it quicker, transparent, and paperless to
recognize MSMEs.
Now, no small- or medium-scale businessman needs to run around for government
recognition or indulge in laborious paperwork.
You can simply obtain an MSME Identification Certificate and register your Udyam in
just a few minutes.
Overview of Quick Benefits
- Online process
- No document upload required
- Permanent Udyam Registration Number
- Direct data link with the government
- Easy loan and subsidy application
- Easy Updates and Verification
Short and concise:
"Udyam Registration has made it easier and more online MSME identification than ever
before. Not only does it provide a legal identity to businesses, but it is also a pioneering
step towards bringing all Indian small and medium businesses into the formal economy."
