MSME / Udyog Aadhaar / Udyam Registration
The Micro, Small, and Medium Enterprises (MSME) sector plays a vital role in India’s economic growth, offering large-scale employment opportunities and fostering industrialization in rural and backward areas. This sector helps reduce regional economic disparities and contributes significantly to the country’s socio-economic development.
Unlike large corporations, MSMEs often lack advanced technology and financial resources, making government support, incentives, and subsidies crucial for their growth. Various government schemes aim to empower MSMEs by providing financial aid, tax benefits, and easier access to credit.
Who We Are
At VPS & Associates, Hyderabad, we assist businesses in obtaining new MSME registrations, amendments, and Udyam re-registrations, as well as providing consultation on government benefits. Our team specializes in MSME compliance and regulatory matters.
Frequently Asked Questions (FAQs) on MSME Registration
1. How are enterprises classified as Micro, Small, and Medium Enterprises?
As per the revised classification (effective April 1, 2025), enterprises are categorized based on investment and turnover:
| Category | Investment Limit | Turnover Limit |
|---|---|---|
| Micro | Up to ₹2.5 crore | Up to ₹10 crore |
| Small | Up to ₹25 crore | Up to ₹100 crore |
| Medium | Up to ₹125 crore | Up to ₹500 crore |
✔ Export revenue is not considered in turnover calculations.
✔ Investment & turnover details must align with Income Tax (IT) and Goods & Services Tax (GST) records.
✔ Enterprises without PAN can self-declare turnover until March 31, 2021. After this date, PAN & GSTIN are mandatory.
2. What happens to businesses registered before June 30, 2020?
All MSMEs registered before June 30, 2020, must re-register under the new Udyam Registration system. The transition period ended on March 31, 2021, meaning businesses must complete Udyam Registration to retain their MSME status.
3. What is Udyog Aadhaar?
Udyog Aadhaar was the previous MSME registration process, which had the following features:
✔ Simple one-page registration (self-declaration)
✔ No registration fee
✔ Instant Udyog Aadhaar Number (UAN) issuance
✔ No document uploads required
4. What is Udyam Registration?
Udyam Registration is the updated MSME registration process introduced in 2020. Similar to Udyog Aadhaar, it is an online, self-declaration process with no documentation upload requirement.
✔ Upon successful registration, the enterprise receives a permanent Udyam Registration Number (URN).
✔ The Udyam Registration Certificate is issued after verification.
5. What Are the Benefits of MSME Registration?
Registering under the MSME Act offers several financial and operational benefits, including:
✅ Collateral-Free Loans (CGTMSE Scheme): Loans up to ₹200 lakh without collateral.
✅ Capital Subsidy for Technology Upgradation: 15% subsidy on new technology investments.
✅ ISO Certification Reimbursement: Up to 75% reimbursement for ISO 9000 / ISO 14001 certifications.
✅ Microfinance Support: Special financial schemes for micro-businesses.
✅ Market Development Assistance (MDA): Support for marketing and business development.
✅ Debt Recovery Assistance: Faster and more efficient recovery of payments.
✅ COVID-19 Relief Measures: Special assistance from CGTMSE for MSMEs affected by the pandemic.
6. Other Business Registrations Required in Hyderabad
In addition to MSME registration, businesses in Hyderabad may need:
✔ GST Registration
✔ Shops & Establishments Registration (Telangana Shops Act)
✔ Professional Tax Registration
✔ Employee Provident Fund (EPF) Registration
✔ Employee State Insurance (ESI) Registration
✔ STPI / Non-STPI Registration
✔ Import Export Code (IEC) Registration
✔ Trade License from GHMC (Greater Hyderabad Municipal Corporation)
