Understanding the Distinctions: Udyog Aadhar Registration vs. MSME Registration


In India, the micro, small, and medium-sized enterprises (MSMEs) are the backbone of the economy, contributing significantly to employment generation and overall industrial growth. To support and promote these enterprises, the Indian government has introduced various schemes and initiatives, including two important registration processes: Udyog Aadhar Registration and MSME Registration. While both aim to facilitate the growth of MSMEs, they differ in terms of eligibility criteria, benefits, and the registration process itself. In this comprehensive article, we will delve into the distinctions between Udyog Aadhar Registration and MSME Registration, helping entrepreneurs and business owners make informed decisions about which one suits their needs.

Udyog Aadhar Registration

Udyog Aadhar Registration is a government-initiated process designed to promote and support small enterprises. It is a more recent scheme compared to the traditional MSME Registration. Here are some key aspects of Udyog Aadhar Registration:

Eligibility Criteria:

  • Micro and small enterprises that are engaged in manufacturing or service activities are eligible.
  • The enterprises must not exceed the investment limit of INR 1 crore for micro-enterprises and INR 10 crore for small enterprises.
  • The registration is not available to medium-sized enterprises.

Registration Process:

  • The Udyog Aadhar Registration process is simple and can be done online through the official Udyog Aadhar portal.
  • Basic information such as the name of the enterprise, Aadhar number of the owner, and type of enterprise is required.
  • Once registered, an Aadhar-based registration number is provided.


  • Easier access to credit facilities, loans, and subsidies from the government.
  • Eligibility for various government schemes, such as the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • Quicker resolution of disputes through the MSME Facilitation Council.

MSME Registration

MSME Registration, on the other hand, is a more traditional and established registration process for micro, small, and medium-sized enterprises. Here are the distinctions:

Eligibility Criteria:

Micro, small, and medium-sized enterprises can register under this scheme.

The investment and turnover limits for MSMEs are defined as per the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006. As of September 2021, these limits are:

  • Micro Enterprises: Investment up to INR 1 crore and turnover up to INR 5 crore.
  • Small Enterprises: Investment up to INR 10 crore and turnover up to INR 50 crore.
  • Medium Enterprises: Investment up to INR 50 crore and turnover up to INR 250 crore.

Registration Process:

  • MSME Registration can be done online through the Udyam Registration portal or manually through the District Industries Centers (DICs).
  • Detailed information about the enterprise, including business activities, investment, and turnover, is required for registration.
  • Upon successful registration, an MSME registration certificate is provided.


  • Preferential treatment in government tenders and procurement.
  • Access to various subsidies, incentives, and schemes.
  • Easier resolution of delayed payments through the Micro and Small Enterprises Facilitation Council (MSEFC).
  • Statutory benefits such as priority sector lending and priority debt restructuring for bank loans.

Note: You Can Apply for Update Udyam Certificate


Both Udyog Aadhar Registration and MSME Registration aim to support the growth of micro, small, and medium-sized enterprises in India. However, they differ in terms of eligibility criteria, registration processes, and benefits.

Udyog Aadhar Registration is a more recent and simplified process aimed at micro and small enterprises. It offers easier access to credit and government schemes.

MSME Registration, with its longer history, covers a broader range of enterprises, including medium-sized ones. It provides additional statutory and preferential benefits in government procurement.

Ultimately, the choice between the two registrations depends on the nature and size of your enterprise. It’s crucial for business owners to carefully assess their eligibility and business requirements to make the most informed decision. In either case, these registrations can significantly boost the prospects of MSMEs and contribute to India’s economic growth.

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