Udyam And Startup India: Where Do They Overlap?

By Author: shweta sahu
Total Articles: 66
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India is experiencing a business revolution. From the smallest street vendor to the most innovative tech founder, entrepreneurs are changing the face of the country. Two major government initiatives — Msme Registration certificate and Startup India — are playing a key role in this transformation. But what exactly do they offer? How are they different? And most importantly, where do they overlap?
This article explains these questions in a clear and simple way so that anyone — whether you’re a home-based business owner or a tech startup founder — can understand how these schemes work together to support your growth.
What is Udyam Registration?
Udyam Registration is an official recognition given to Micro, Small, and Medium Enterprises (MSMEs) in India by the Ministry of Micro, Small & Medium Enterprises.
Here’s what you need to know:
It is free and fully online.

It is based on investment and turnover limits.

You get a unique Udyam Registration Number (URN) and certificate.

Businesses like shops, factories, service providers, and even freelancers ...
... can register.

Benefits of Udyam Registration
Access to government schemes like subsidies, credit support, and technology upgrades.

Easier to get bank loans at lower interest rates.

Protection against delayed payments from buyers.

Preference in government tenders and contracts.

Ease in getting licenses and registrations.

What is Startup India?
Startup India is a flagship initiative launched by the Government of India in 2016 to promote innovation and entrepreneurship.
It is mainly designed for innovative, scalable startups — often in the tech, product, or service-based industries.
Key features of Startup India:
Recognition as a DPIIT-registered startup.

Focus on innovation, job creation, and wealth generation.

The startup must be less than 10 years old, and have an annual turnover of under ₹100 crore.

Benefits of Startup India
Income tax exemption for 3 years.

Exemption from Angel Tax under Section 56.

Easy access to Startup India Seed Fund Scheme and Fund of Funds for Startups (FFS).

Fast-track access to patent and trademark filing.

Easier process for public procurement and government tenders.

Networking support through Startup India Hub and incubation centers.

So, Where Do They Overlap?
Now let’s look at the core of this article — how Udyam and Startup India intersect and how a business can benefit from both.
1. Dual Eligibility is Possible
Yes, your business can be both an MSME under Udyam and a startup under Startup India. For example:
A tech company offering an app-based solution for rural healthcare may register as a startup because it is innovative.

The same company can also register under Udyam if its investment and turnover fall within MSME limits.

2. Access to Multiple Schemes
By registering under both schemes, businesses can double their benefits:
Get collateral-free loans under Udyam’s credit schemes.

Avail tax exemptions and funding support through Startup India.

Enjoy priority in public procurement under both categories.

Participate in government incubator and accelerator programs.

3. Ease of Doing Business
Both schemes are designed to simplify compliance and help businesses grow faster. A business that registers under both can enjoy:
Easier banking and finance approvals.

Quick access to grants and subsidies.

Opportunities to join startup expos, fairs, and trade events.

4. Enhanced Visibility and Trust
Being a registered MSME (Udyam) and a recognized startup (DPIIT) builds credibility. It shows that your business is serious, government-approved, and trustworthy. This increases your chances with:
Investors

Clients

Banks

Government departments

5. Stronger Legal and Market Support
Startup India provides intellectual property support for patents and designs. Udyam offers delayed payment protection. Together, they strengthen both the legal protection and market access of your business.
How to Register for Both
Here’s how a business can register under both schemes:
Step 1: Udyam Registration
Visit msme registration.

Enter Aadhaar and PAN details.

Provide business information (name, address, turnover, etc.).

Submit and receive Udyam Certificate.

Step 2: Startup India Registration
Go to MSME Registration
Create a profile and login.

Fill the application for DPIIT Recognition.

Upload necessary documents like company registration, brief pitch, etc.

Wait for approval and recognition certificate.

Things to Keep in Mind
Startup India recognition requires the business to be innovative and scalable.

Udyam is open to a wider range of businesses, even traditional or local ones.

You should update your information regularly to continue receiving benefits.

A well-documented business plan helps in both registrations.
Conclusion: Grow Smarter with Dual Power
Udyam and Startup India are not competing programs. Instead, they complement each other beautifully. While Udyam focuses on empowering small businesses, Startup India promotes innovation and job creation.
By understanding where they overlap and how to use both, entrepreneurs can unlock the full power of government support. Whether you're a home-based entrepreneur making organic soaps or a tech founder building the next big app — registering under both Udyam and Startup India can give your business the strong foundation it needs to scale and succeed.
So, don’t wait. If you’re eligible, take advantage of both. Your business deserves the best support India has to offer.