Why do I need to migrate from Udyog Aadhaar to Udyam Registration?

Migrating from Udyog Aadhaar to Udyam Registration is essential because the Government of India introduced the Udyam system on 1st July 2020 to provide a more streamlined, integrated, and authenticated way to classify and register MSMEs. Unlike Udyog Aadhaar, which was based largely on self-declared data, the Udyam Registration system is linked with government databases like Income Tax, GST, and PAN, allowing for more accurate, verified, and standardized information across businesses.

Migration ensures that MSMEs continue to remain eligible for various government schemes, subsidies, collateral-free loans, and priority sector lending. Failure to migrate may result in loss of MSME status, making businesses ineligible for these benefits.

Additionally, many financial institutions and departments have started accepting only Udyam certificates for verification of MSME status. Therefore, updating to Udyam not only aligns businesses with new government policies but also opens up more opportunities and ensures continued compliance.

Overall, the migration ensures that your MSME status remains valid under the current law and improves transparency and reliability in how businesses are identified and supported.

Is it mandatory to convert Udyog Aadhar to Udyam Registration?

Yes, conversion from Udyog Aadhar to Udyam Registration is mandatory for businesses that wish to continue enjoying MSME benefits. After the launch of Udyam Registration in July 2020, the Ministry of MSME officially phased out the Udyog Aadhaar Memorandum (UAM). Although there was a transitional period during which both systems were recognized, this has now ended.

The government has made it clear that only enterprises registered on the Udyam Registration Portal will be recognized as MSMEs. This means that if you still rely on your old Udyog Aadhaar number, your business may no longer be eligible for:

• MSME credit and financing schemes
• Subsidies and incentives
• Government tenders requiring MSME certification
• Tax and regulatory exemptions applicable to MSMEs

Furthermore, departments and financial institutions now validate MSME status directly from the Udyam portal, making it important to be registered under the new system. The migration is free of cost and can be done online.

Therefore, if you have not yet converted your Udyog Aadhar  to Udyam registration, it is strongly advised to do so immediately to maintain your MSME benefits and compliance with current regulations.

Do I need a new Aadhar authentication while registering on the Udyam portal?

Yes, Aadhaar authentication is required during the registration process on the Udyam portal, even for those migrating from Udyog Aadhar to udyam registration. The Aadhaar number of the proprietor (in the case of proprietorship), partner (for partnership firms), or director (for companies) must be provided and authenticated via an OTP sent to the mobile number linked with the Aadhaar.

This authentication ensures:

• Identity verification of the applicant.
• Linkage of MSME registration with other government databases like PAN, GST, and IT returns.
• Reduction in duplication or misuse of MSME registrations.

The Aadhaar-based OTP verification step is mandatory and must be completed to proceed with the Udyam registration. If the mobile number linked with your Aadhaar is inactive or changed, you should update it first through the UIDAI website before beginning the Udyam process.

This step ensures data transparency, better compliance, and authentication, making the Udyam system more reliable than the earlier Udyog Aadhaar system.

What details will be transferred from Udyog Aadhar to Udyam Registration during the update process?

When you migrate from Udyog Aadhar to Udyam Registration, several pieces of information from your old registration are automatically retrieved and displayed during the new registration process. This ensures continuity and reduces the burden of re-entering the same data.

The following key details are usually carried over:

• Udyog Aadhaar Number (UAN)
• Name of the Enterprise
• Type of Organization (Proprietorship, Partnership, etc.)
• Business Address
• Date of Commencement of Business
• NIC Code(s) for Business Activity
• Mobile Number and Email ID
• District and State of Operation

However, new mandatory information required by the Udyam system will also need to be added, such as:

• PAN and GSTIN
• Turnover and Investment details
• Updated Aadhaar verification
• Bank details (Account number and IFSC)

While Udyam pulls data from the Udyog Aadhaar record, it also validates and links it with various government databases to ensure accuracy. This enhances credibility and ensures that your enterprise remains eligible for official MSME schemes and benefits.

Are there any charges or fees involved in migrating to Udyam Registration?

No, there are absolutely no charges or fees involved in migrating from Udyog Aadhar to Udyam Registration. The entire Udyog Aadhar to Udyam Registration process is completely free of cost, as mandated by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The Udyam Registration portal is the only official platform for both new registrations and migration from the older Udyog Aadhar to udyam registration system.

This zero-cost initiative is part of the government’s efforts to support small and medium enterprises, ensuring that the formalization process does not become a financial burden, especially for micro and small businesses. The goal is to encourage more MSMEs to register and avail themselves of government benefits, schemes, subsidies, and credit support without worrying about registration expenses.