Udyam vs. MSME Registration Online: A Comprehensive Comparison

In the ever-evolving landscape of business and entrepreneurship, small and medium-sized enterprises (SMEs) play a pivotal role in driving economic growth and employment opportunities. To support and empower these entities, governments across the globe have established frameworks and programs. In India, two significant initiatives aimed at promoting SMEs are the Udyam Registration online and MSME Registration online, both of which facilitate the growth and development of small and medium-sized businesses. In this comprehensive comparison, we will delve into the details of these two registration processes, highlighting their features, benefits, and differences.

Understanding Udyam Registration:

Udyam Registration is a relatively new system introduced by the Government of India to simplify and streamline the registration process for micro, small, and medium-sized enterprises. This registration is crucial for availing various benefits and incentives provided by the government to promote SMEs. Here’s an in-depth look at Udyam Registration:

Eligibility Criteria:

  • Businesses engaged in manufacturing or service activities can register under Udyam.
  • The classification of businesses as micro, small, or medium-sized is based on investment in plant and machinery or turnover.

Key Benefits of Udyam Registration:

Priority Lending: 

Registered Udyam enterprises have easier access to credit and loans from banks and financial institutions.

Subsidies and Incentives: 

The government offers subsidies and incentives to registered Udyam enterprises, reducing their operational costs.

Ease of Business Operations: 

Udyam Registration simplifies various regulatory compliances and ensures smoother business operations.

Government Tenders: 

Registered Udyam enterprises can participate in government tenders, opening up opportunities for lucrative contracts.

The Process of Udyam Registration:

Udyam Registration is a straightforward online process that involves minimal documentation. Applicants need to provide their Aadhar card details and business information. Once the application is submitted, a unique Udyam Registration Number (URN) is generated.

Understanding MSME Registration:

MSME Registration, on the other hand, is the previous system for registering micro, small, and medium-sized enterprises in India. It predates Udyam Registration and was widely used before the introduction of the Udyam system. Here’s an overview of MSME Registration:

Eligibility Criteria:

  • MSME Registration is available to businesses engaged in manufacturing or service activities.
  • The classification is based on investment in plant and machinery or turnover, similar to Udyam.

Key Benefits of MSME Registration:

Financial Support: 

MSMEs enjoy preferential treatment in terms of credit facilities, with lower interest rates and collateral-free loans.

Concessions and Subsidies: 

Governments offer various concessions, subsidies, and tax benefits to registered MSMEs.

Priority in Government Procurement: 

Registered MSMEs receive preference in government procurement, enhancing their market access.

The Process of MSME Registration:

The process of MSME Registration is also online, involving the submission of basic business information and required documents. Upon approval, an MSME Registration Certificate is issue.

Udyam vs. MSME Registration: A Detailed Comparison:

Registration Criteria: 

Both Udyam and MSME Registration use the same criteria base on investment or turnover for classification. However, Udyam has replace the nomenclature of ‘MSME’ with ‘Udyam,’ which is more in line with the government’s Make in India initiative.

Online Process: 

Both registration processes are conduct online, making them accessible to businesses across India.


Udyam Registration requires minimal documentation, primarily Aadhar card details and business information. MSME Registration may have slightly more stringent document requirements.


Both systems offer similar benefits, such as access to credit, subsidies, and concessions. However, the naming conventions for these benefits may differ.

Operational Impact: 

Udyam Registration is expect to streamline operations further due to its simplicity and alignment with the government’s vision for ease of doing business.


Existing MSME Registrations were required to transition to Udyam Registration, making it the primary registration system for SMEs in India.

Note: You can apply for Print Udyam Certificate


Both Udyam and MSME Registration aim to support and promote the growth of small and medium-sized enterprises in India. While Udyam Registration is the more recent and simplify system, the benefits and eligibility criteria are quite similar to MSME Registration. Businesses in India should carefully evaluate their needs and requirements to choose the most appropriate registration system, ensuring they can access the various benefits and opportunities offer by the government to foster SME growth in the country.

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