MSME Registration in Hyderabad – Udyam Certificate, Eligibility, 15 Lakh Subsidy & FAQs

Looking to boost your small business with government benefits? MSME registration in Hyderabad through the Udyam portal gives you access to subsidies, priority loans, tax relief, and exclusive schemes under the Ministry of MSME. In this FAQ-based guide, we answer the most common questions about MSME/Udyam eligibility, 15 lakh subsidy, registration cost, GST rules, and how to start an MSME in Telangana.

📌 Section 1: Who is Eligible for MSME Registration?

FAQs:

1. Who cannot register under MSME?
   Large-scale enterprises with investment or turnover beyond MSME limits, foreign companies, and unregistered businesses.

2. Who is eligible for MSME subsidy?
   Registered micro, small, and medium enterprises under Udyam can claim subsidies on technology, machinery, and marketing support.

3. What happens if MSME is not paid?
   If payment is delayed beyond 45 days, the buyer must pay compound interest at three times the bank rate.

4. What are MSME benefits?

   • Priority sector lending

   • Subsidies on machinery

   • Tax rebates

   • Protection from delayed payments

   • Easier access to government tenders

5. How to find MSME vendor?
   Use the MSME Sampark or Udyam portal to connect with registered vendors.

6. Is MSME loan interest free?
   No, but many government schemes offer subsidized interest rates (starting at 1% per annum).

7. What is the new scheme in 2025?
   Schemes like CLCSS, Credit Guarantee Fund, and MSME Champions Scheme continue to evolve with better digital access.

8. How to apply for MSME?
   Visit udyamregistration.gov.in and register using Aadhaar and PAN.

9. What is the criteria for MSME?

   • Micro: Investment ≤ ₹1 crore & Turnover ≤ ₹5 crore

   • Small: Investment ≤ ₹10 crore & Turnover ≤ ₹50 crore

   • Medium: Investment ≤ ₹50 crore & Turnover ≤ ₹250 crore

10. Who needs to file MSME form?
    Businesses seeking to register under MSME/Udyam for government benefits.

11. Which business comes under MSME?
    Manufacturing, services, trading, and agro-based businesses.

12. What is the turnover limit for MSME?
    ₹250 crore for medium enterprises.

📌 Section 2: What is the ₹15 Lakh Subsidy for MSMEs?

FAQs:

1. What is the tax rate for MSME?
   25% corporate tax if turnover ≤ ₹400 crore (same as general businesses), plus benefits under 44AD for individuals.

2. How to start an MSME business?
   Choose a business model, register under Udyam, open a current account, and apply for required licenses.

3. On which certificate will MSME get financial reimbursement of ₹50,000?
   Udyam Registration Certificate is required to avail most financial incentives.

4. What is the 45-day payment rule?
   Payments to MSMEs must be made within 45 days; else interest penalty applies.

5. What is the new criteria for MSME (2024–25)?
   Classification is now based on investment in plant/machinery and turnover (as listed above).

6. What is the TDS for MSME?
   Standard TDS rules apply; however, MSMEs may be exempt under certain presumptive schemes.

7. What are the fees for MSME certificate?
   Free if applied through the Udyam portal.

8. Who is eligible for MSME loan?
   Any Udyam-registered business with basic KYC, GST, PAN, and current account.

9. Is a bank account mandatory for MSME registration?
   Not during registration, but required for availing loans and schemes post-registration.

10. Who will issue MSME certificate?
    Ministry of MSME via the Udyam Registration portal.

11. How do I claim MSME subsidy?
    Apply through MSME department portals for schemes like CLCSS, TUFS, or Mudra Yojana.

12. What is the Z certificate?
    Refers to MSME’s Zero Defect Zero Effect certification for quality manufacturing.

13. What is the 15 lakh subsidy for MSME?
    Offered under credit-linked capital subsidy schemes for machinery upgrades in manufacturing MSMEs.

📌 Section 3: Is MSME Registration Free?

FAQs:

1. Is GST compulsory for MSME registration?
   No, but GST is recommended for loans, tender participation, and business growth.

2. How to get MSME loan?
   Apply via banks or schemes like Mudra, CGTMSE, and SIDBI post Udyam registration.

3. What is the MSME new rule?
   MSMEs must link PAN and Aadhaar; composite turnover and investment norms apply.

4. Who cannot apply for MSME?
   Companies exceeding ₹250 crore turnover/investment, foreign firms, or unregistered entities.

5. What is the cost of GST registration?
   Free on the government portal.

6. What is the MSME turnover limit?
   ₹250 crore for Medium, ₹50 crore for Small, ₹5 crore for Micro.

7. What is the minimum CIBIL score for MSME loan?
   Generally 650+, but varies by lender.

8. What is MSME full form?
   Micro, Small and Medium Enterprises.

9. What is the 45 days rule of MSME?
   Ensures MSMEs receive payment within 45 days, with interest if delayed.

10. What is the 45-day rule?
    Same as above — under MSME Act Section 15.

📌 Section 4: How Much Money Is Required for MSME Registration?

FAQs:

1. What is MSME limit?

   • Micro: Up to ₹1 crore

   • Small: Up to ₹10 crore

   • Medium: Up to ₹50 crore (investment) and ₹250 crore (turnover)

2. Who requires MSME certificate?
   Businesses looking to avail tax benefits, government schemes, tenders, or funding.

3. Can I have 2 Udyam Registrations?
   No. One PAN = One Udyam Registration.

4. What is the cost of MSME registration?
   Free of cost via official Udyam portal.

5. Are MSME and Udyam the same?
   Yes. Udyam is the current official portal for MSME registration.

6. What is the maximum amount for MSME loan?
   Ranges up to ₹2 crore under Mudra, and higher under CGTMSE/PMEGP based on business plan.

7. Who is not eligible for MSME?
   Large companies, foreign entities, and those exceeding threshold limits.

8. What are MSME registration fees?
   Zero when registered through udyamregistration.gov.in.

9. Is GST mandatory for MSME registration?
   Not mandatory, but often required for availing benefits and loans.

10. Who is eligible for Udyam?
    Any individual, sole proprietorship, partnership, LLP, Pvt Ltd, or enterprise meeting investment/turnover criteria.

11. How long is Udyam valid?
    It is permanent; however, updates may be required if turnover or structure changes.