Q.Which system did Udyam Registration replace with effect from 1 July 2020?

Udyam Registration is the current, simplified MSME registration process, introduced from 1 July 2020 to replace an older registration mechanism used specifically for MSMEs.

Udyam Registration is specifically the MSME registration mechanism, so the correct answer must be another MSME-specific registration system, not an unrelated statutory registration.

1. GST Registration is a separate tax registration required under the Goods and Services Tax law for eligible businesses generally, and is not specific to MSMEs nor was it replaced by Udyam Registration — incorrect.
2. Shops and Establishments Registration is a state-level labour-law registration required for commercial establishments, unrelated to MSME classification — incorrect.
3. The Udyog Aadhaar Memorandum (UAM) was the earlier online self-registration system specifically meant for MSMEs, in use before 1 July 2020. Udyam Registration directly replaced UAM with a revised, simplified process — this is the correct answer.
4. Trade Licence Registration is a local-body/municipal permission to operate a business at a location, unconnected with MSME classification or Udyam Registration — incorrect.
   ✓Final answer

   (c) Udyog Aadhaar Memorandum

A common mistake is confusing Udyam Registration with GST registration since both are online and PAN-linked — but GST registration is a tax requirement for businesses generally, while Udyam Registration is specifically for claiming MSME status and benefits, and it is UAM, not GST, that Udyam Registration replaced.