Chances are you've heard these terms both as an entrepreneur and even small to medium-sized business owner. Despite such confusion and despite information floating about so much, it might be confusing regarding what they mean, what the differences between them are, and which may even apply to you.

In this article, We will look at the differences, list the benefits, and guide you on how you can easily navigate through the process of registration.

What Was MSME Registration?

In simple words, it is a kind of Micro, Small and Medium Enterprises. In simpler words, it is the classification of the firms in terms of investment as well as their turnover. Among a whole list of initiatives taken by the government under the umbrella of the MSME Development Act in 2006, MSME registration was one of them. Its primary aim was to ensure that small-scale business enterprises avail themselves of the facilities of tender from the government, subsidy, and soft loans. The process of registration was anything but perfect it was full of paperwork, tedium, and run-around.

What is Udyam Registration?

In 2020, the Indian government introduced Udyam Registration  as a step to make things simpler and more manageable for the lives of businessmen. Think of Udyam in terms of the New, Improved MSME Registration; it is fully online, paperless, and much more efficient.

It considers investment in plant and machinery as well as annual turnover, therefore, it is a way of categorizing businesses in a more universal manner. One can simply register by having an Aadhaar number. The process is easy, quick, and people-friendly.

“Divergence Between Udyam Registration and MSME Registration”

There is a difference between Udyam and MSME registration, which you should know when both look to stand for smaller businesses:

Process Simplifications: The MSME registration process is a very manual one with a lot of documents. Udyam is an online fully digitized process wherein you can do it quite peacefully from anywhere.

Criterion: The criteria of registration for Udyam are based on investment as well as turnover so a much more appropriate classification will be done; whereas, earlier only investment was the basis while registering MSME.

Documentation: The documentation required to register Udyam has been reduced to the bare minimum which is just your Aadhar and some business details. MSME registration had much more compared to this only.

Technology: The online portal of Udyam has allowed smooth upgradation of information, download of instant certificates, and trackability.

“Why Udyam Registration is Better for Your Business”

So, why Udyam Registration for your business?

Access to Loans: Want to expand with some quick capital? All businesses registered under Udyam can access collateral-free loans and usually receive much lower interest rates.

Tax Benefits: Yes, there also are several tax exemptions and incentives offered through Udyam registration, saving you a tonne of money later

Government Tenders: If you want your business to be on the list of high-value contracts under the government, then Udyam registration gives your business priority in the tender.

Less Compliance Headache: Udyam registration cuts down the paperwork and many forms associated with your registration; which leaves you with much more time to focus on your business.

Credibility: Udyam registration lends business that's an official existence. You get partnerships, suppliers, funding, and even financing from banks as they consider you a valid registered business.

Whether it's a micro-enterprise or an emerging startup company; Udyam registration brings a layer of credibility and unlocks government-supported avenues.

What Might Hinder Udyam Registration?

Udyam registration is easier than the old MSME, but some entrepreneurs face obstacles. The most common reasons include,

Lack of knowledge of what a person needs, therefore waiting for what documents to prepare.

Registration portal; although online, at times it becomes challenging when the user is not exposed to pass through the portal that errors do not end in the system while in the process of registration.

Data Entry Errors: A small error by an application may cause a delay and or rejection

If you do face some of these problems, then don't lose your sleep for the time being. UdyogRegistration.in is here to help. All we at UdyogRegistration. do is enable the process of getting a Udyam registration without any bumps and humps in the way since it would all be filled in correctly and submitted well within time.

Conclusion: Udyam the Future for Your Business

In short, it is a very great initiative for MSME registration, but Udyam what I think has really simplified the life of small and medium businesses is that it is simple regarding registration, better classification, and instant certificates, and the effect is that one spends less time doing paperwork and more time working on business growth.

For professional help with registering, check out UdyogRegistration.in. We'll do our best and try to make the process of Udyam registration as smooth as possible so you can focus on what counts-running your business!