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Business from A to Z · Lesson 6
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Lesson 6 of 1710 minSetting up

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.

Rules change

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)

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:

SituationRegistration usually needed
Turnover of goods above ₹40 lakh a year (most states, including Telangana)Yes
Turnover of services above ₹20 lakh a yearYes
Selling to other states (inter-state supply)Often yes, with some exceptions
Selling through e-commerce platformsPlatforms 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

LicenceWho needs itWhere
FSSAIAny food business, including home bakers and tiffin services. Basic registration for small turnover (up to ₹12 lakh/year), licence above thatfoscos.fssai.gov.in
Trade licenceShops and businesses operating within municipal limitsGHMC (in Hyderabad) or local municipality
Shop & Establishment registrationShops and offices with premises, especially with employeesTelangana Labour Department portal
Professional taxBusinesses with employees, and some professionalsTelangana Commercial Taxes
Quick check+10 XP

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.

Website"Udyam Registration Fast Service · ₹1,999 · Get certificate in 1 hour" (not a .gov.in site)now

Careful. Udyam registration is free on the official government portal. Many private sites charge for something you can do yourself.

FounderRegisters on udyamregistration.gov.in with Aadhaar, applies for FSSAI basic registration, and asks a CA whether GST is needed for planned marketplace sales.now

Good. Uses official portals and gets expert advice where rules are complex.

Final check+20 XP

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 →