Udyam, GST and licences.
Registrations sound scary, but most small businesses need only a few, and some are free and online. Today you'll learn which registrations you may need in Telangana and India, and when.
Thresholds and rules are updated from time to time. Always confirm on official government websites or with a CA before acting. This lesson gives you the map, not legal advice.
Udyam registration (MSME)
- What: Government registration for micro, small and medium enterprises.
- Cost: Free, on the official portal udyamregistration.gov.in (based on Aadhaar).
- Why: Recognition as an MSME, access to some government schemes, tenders and support.
Beware of look-alike websites that charge fees for Udyam registration. The official one is free.
GST registration
GST (Goods and Services Tax) is a tax on supply of goods and services. You must register when:
| Situation | Registration usually needed |
|---|---|
| Turnover of goods above ₹40 lakh a year (most states, including Telangana) | Yes |
| Turnover of services above ₹20 lakh a year | Yes |
| Selling to other states (inter-state supply) | Often yes, with some exceptions |
| Selling through e-commerce platforms | Platforms often ask for a GSTIN, though some exemptions now exist for small sellers; check current rules |
Below these limits, registration is generally optional. Some businesses register voluntarily so they can sell to companies and claim input tax credit. We'll learn GST basics in Lesson 15.
Other common licences
| Licence | Who needs it | Where |
|---|---|---|
| FSSAI | Any food business, including home bakers and tiffin services. Basic registration for small turnover (up to ₹12 lakh/year), licence above that | foscos.fssai.gov.in |
| Trade licence | Shops and businesses operating within municipal limits | GHMC (in Hyderabad) or local municipality |
| Shop & Establishment registration | Shops and offices with premises, especially with employees | Telangana Labour Department portal |
| Professional tax | Businesses with employees, and some professionals | Telangana Commercial Taxes |
A home baker in Tolichowki starts selling cakes on Instagram. Which registration is most clearly needed?
Any food business needs FSSAI registration or licence, even from home.
Careful. Udyam registration is free on the official government portal. Many private sites charge for something you can do yourself.
Good. Uses official portals and gets expert advice where rules are complex.
Where should you do Udyam registration?
Use official government portals.
Your task (20 min)
For your business idea, list which registrations apply now and which will apply later (with the turnover level that triggers them). Visit the official Udyam and FSSAI websites to see the forms. Don't pay any agent before checking what's free.
Lesson 6 complete!
You know about Udyam, GST thresholds, FSSAI, trade licences and Shop & Establishment registration. Next: bank accounts, UPI and payments.
Next: Bank account, UPI and payments →