The Udyog Aadhar registration and MSME registration are two schemes launched by the Indian government to provide various benefits to small and medium-sized enterprises (SMEs). While both schemes are aimed at helping SMEs grow and develop, there are some significant differences between the two. In this blog, we will discuss the differences between Udyog Aadhar and MSME registration and help you decide which one to choose.
Online vs. Offline Process
The Udyog Aadhar registration process is entirely online, while the MSME registration process can be done online or offline. This means that with Udyog Aadhar, you can register your business from the comfort of your home or office, without having to visit any government offices. On the other hand, for MSME registration, you may need to visit the district industries centre (DIC) or other relevant government offices. For Udyog Aadhar, there are various online platforms that provide services to register your business. But for MSME registration, you need either an agent or you have to do it by yourself.
Aadhar-based vs. PAN-based Registration
To register under the Udyog Aadhar scheme, you need to provide your Aadhar card details, while for MSME registration, you need to provide your PAN details. This means that Udyog Aadhar registration is Aadhar-based, while MSME registration is PAN-based. Under the Udyog Aadhar, you linked your aadhar to enterprise so that you can avail government schemes. On the other hand, MSME registration works on PAN card details.
Registration Threshold Limit
Under the Udyog Aadhar scheme, micro, small, and medium enterprises with an investment till Rs. 1 crore as well as turnover till Rs. 5 crores can register themselves. However, under the MSME scheme, the investment limit for micro-enterprises is up to Rs. 1 crore, small enterprises is up to Rs. 10 crores, and medium
is up to Rs. 50 crores.
Recognition of Registration
The Udyog Aadhar registration is only a recognition of the existence of the business and does not provide any specific benefits or incentives. On the other hand, MSME registration provides various benefits such as credit guarantee, subsidies, tax exemptions, and priority sector lending from banks.
With the details of PAN card and Aadhar, MSME registration provides a self certification. On the other hand, with Aadhar details, udyog aadhar registration does not provide self certification but a verified certification as per new criteria of MSME. The certification process is instant in MSME registration but in Udyog Aadhar, it is not instant.
There is no registration fee for Udyog Aadhar registration, while for MSME registration, there is a fee that varies depending on the state where the business is located. It can be said that Udyog Aadhar registration is free of cost but MSME registration charges a certain fee.
The Udyog Aadhar registration is valid for a lifetime and does not require any renewal. On the other hand, MSME registration is valid for a period of five years and requires renewal after the expiry of the validity period.
So, for which you should go– Udyog Aadhaar for MSME registration? Do not be overwhelmed as the answer is here!!!
The answer depends on the requirements of your enterprise and the nature of your business. If you are a micro, small, or medium-sized enterprise with an investment of to Rs. 1 crore as well as turnover of to Rs. 5 crores, and you are looking for a simple and easy registration process, then Udyog Aadhar registration is the way to go. However, if you are looking for specific benefits such as credit guarantee, subsidies, tax exemptions, and priority sector lending from banks, then MSME registration is the better option.
Both Udyog Aadhar and MSME registration are excellent schemes launched by the government to help SMEs grow and develop. However, before choosing one over the other, it is essential to understand the differences between the two and evaluate which one meets your business needs and requirements.
And from the above -mentioned article, small business owners understand the concept of the udyog aadhar registration and MSME registration. To make the process simple, the government made registration online. Additionally, to remove the rest of hassle, udyog aadhar has emerged as a trustworthy platform for users. Here, with some easy steps you can fill in information about business and the rest of the procedure would be handled by our team of experts. After that you can sit and relax in order to get your registration certificate in hand.