Udyam Registration Online: Distinguishing It from MSME Registration Online

In the realm of small and medium-sized enterprises (SMEs) in India, the government has implemented various schemes and initiatives aimed at providing support and encouragement to this crucial sector of the economy. Two such schemes, Udyam Registration Online and MSME Registration Online, have garnered significant attention and confusion among business owners and entrepreneurs. This article aims to provide clarity on the distinctions between Udyam Registration and MSME Registration, their objectives, and how they can benefit small and medium-sized businesses.

Understanding Udyam Registration Online

What is Udyam Registration?

Udyam Registration is a relatively new initiative introduced by the Government of India in 2020. It is a process that allows businesses to register themselves as “Udyam” or micro, small, and medium enterprises. The primary goal of Udyam Registration is to simplify the registration process and provide numerous benefits to registered businesses.

Key Features of Udyam Registration

Online Registration: 

Udyam Registration is entirely online, making it convenient for businesses to register and manage their details through a user-friendly portal.

Simplified Process: 

The registration process is streamlined, making it accessible for all types of businesses. It involves self-declaration, and no documentary evidence is required at the time of registration.

Classification of Businesses: 

Udyam Registration classifies businesses into three categories based on their investment in plant and machinery or equipment, allowing them to avail benefits accordingly. These categories are Micro, Small, and Medium.

Government Benefits: 

Once registered, businesses become eligible for various government schemes, subsidies, and incentives designed to foster the growth of SMEs.

Udyam Certificate: 

Successful registration results in the issuance of an Udyam Certificate, which is a recognition of the business’s status as an Udyam.

Understanding MSME Registration Online

What is MSME Registration?

Before the introduction of Udyam Registration, the Government of India used the term “MSME” or Micro, Small, and Medium Enterprises to categorize and support small businesses. The MSME Registration is still in place, and many business owners may be wondering how it differs from Udyam Registration.

Key Features of MSME Registration

Legacy Scheme: 

MSME Registration has been in existence for several years and continues to serve as a method of classifying and supporting businesses based on their investment in plant and machinery or equipment.

Registration Thresholds: 

MSME Registration sets specific investment thresholds for businesses to determine their category, which can vary over time and across industries.

Government Benefits: 

Like Udyam Registration, MSME-registered businesses are eligible for government incentives, subsidies, and schemes aimed at promoting the growth and development of small and medium-sized enterprises.

MSME Certificate: 

Upon successful registration, businesses receive an MSME Certificate, which serves as an acknowledgment of their status as an MSME.

Key Differences between Udyam Registration and MSME Registration


The most apparent difference is the name itself. Udyam Registration specifically uses the term “Udyam,” while MSME Registration uses “MSME.”

Registration Process: 

Udyam Registration is a more simplified and online process that focuses on self-declaration. In contrast, MSME Registration may require more documentation and follow the previous thresholds.


Udyam Registration has uniform investment thresholds for all sectors, while MSME Registration’s thresholds can vary by industry and over time.

Certificate Name: 

The certificates issued under these schemes bear different names – Udyam Certificate for Udyam Registration and MSME Certificate for MSME Registration.


While Udyam Registration is the newer initiative, MSME Registration continues to be valid and recognized.

Which Registration Should You Opt For?

The choice between Udyam Registration and MSME Registration depends on various factors, including the specific requirements of your business, the investment in plant and machinery, and the industry in which you operate. It’s essential to carefully evaluate the benefits and eligibility criteria of each scheme to determine which one suits your business better.

Note: You Can Apply for Print Udyam Certificate


Udyam Registration Online and MSME Registration Online are both valuable government initiatives aimed at supporting the growth and development of small and medium-sized enterprises in India. While Udyam Registration is a newer, simplified process, MSME Registration continues to be relevant and provides similar benefits. Business owners should carefully assess their needs and requirements to choose the most suitable registration option for their enterprise. Regardless of the choice, both schemes offer opportunities for businesses to access government incentives and support, contributing to the growth and prosperity of the SME sector in India.

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