MSME, startups and registrations: answers to common questions
Udyam registration, Startup India recognition, PAN, TAN and Aadhaar, and the registration of trusts, NGOs and Section 8 companies. Each answer gives the short answer first, then the detail and the legal basis.
Registrations
How do I get Udyam (MSME) registration, and what are the current limits?
Udyam registration is free and online, on the Ministry of MSME's portal, with the Aadhaar of the proprietor, partner or director and the business's PAN. Investment and turnover are taken from income-tax and GST data. Since 1 April 2025, a micro enterprise has investment up to ₹2.5 crore and turnover up to ₹10 crore; small, up to ₹25 crore and ₹100 crore; medium, up to ₹125 crore and ₹500 crore.
Read the full answer · Reviewed 8 November 2026
When do I need a PAN or a TAN, and what happens if PAN and Aadhaar are not linked?
A PAN is needed to file returns and for most financial transactions; a TAN is needed by anyone who deducts or collects tax, except individuals deducting on property, rent or contract payments, who use their PAN. If an individual's PAN is not linked with Aadhaar, it becomes inoperative: no refunds, and TDS and TCS at higher rates. It can be made operative by linking it after paying a ₹1,000 fee.
Read the full answer · Reviewed 8 November 2026
Startups, trusts and NGOs
Who qualifies as a startup under Startup India, and how does the section 80-IAC (now section 140) tax holiday work?
Since February 2026, a company, LLP, registered firm or cooperative society up to 10 years old, with turnover up to ₹200 crore in every year and an innovative or scalable business, can be recognised by DPIIT. A recognised company or LLP incorporated before 1 April 2030, with turnover up to ₹100 crore, can deduct 100% of its profits for 3 of its first 10 years, with the Inter-Ministerial Board's approval.
Read the full answer · Reviewed 8 November 2026
How does a trust, society or Section 8 company get registration for tax exemption and 80G approval (now section 354)?
A charitable trust, society or Section 8 company is tax-exempt only after registration under the old section 12A or 12AB (now section 332). A new one first gets provisional registration for three years. Approval under section 80G (now section 354) lets donors claim a deduction (now section 133). It must apply 85% of its income to its objects, get its accounts audited, and file ITR-7 and donation statements.
Read the full answer · Reviewed 8 November 2026