MSME Registration

Overview of MSME Registration

Before understanding, what is MSME Registration; it is important to know what MSME is? MSME stands for Micro, Small, and Medium Enterprises and is the backbone of the economy. MSME is the apex executive body for the implementation and administration of rules, regulations, and laws relating to Micro, Small, and Medium Enterprises. Both the Manufacturing and Service sectors can apply for MSME Registration.

Now, if we talk about MSME Registration, MSME Registration is a simple and less time-consuming process for registering the MSMEs and SMEs. It provides various benefits to the enterprises like by providing financial support and also excess to government subsidies. It helps in improving the infrastructure and in expanding the business

What are the Benefits of Availing the MSME Registration?

MSME Registration provides various benefits to Micro, Small, and Medium Enterprises. A Few of them are mentioned below:-

• Helps In Obtaining The Government TendersMSME registration assist to acquire government tenders with no trouble as Udyam Registration Portal is incorporated with Government e-Marketplace & various other State Government portals which present easy access to their marketplace & e-tenders.
• Exemptions Under Direct Tax LawsEnterprises that enclose MSME Registration can benefit from Direct Tax Exemption in the early year of business, as stated in the scheme by Government & depending on business activity too.
• Collateral Free Loans From BanksThe Government of India has authorized collateral-free credit available to all small & micro business sectors. This scheme guarantees funds to micro and small division enterprises. Under this very scheme, both the old and new enterprises can seek the benefits.

  The ‘Credit Guarantee Fund Scheme’ (CGS) for Micro & Small Enterprises was launched by the Government of India to make accessible collateral-free credit to the micro & small enterprise sector. Both the existing & the new enterprises are entitled to be covered under this scheme.

• Exemption On The Overdraft Interest RateEnterprises or Businesses registered under MSME can gain a benefit of 1% on the Over Draft as stated in a scheme that varies from bank to bank.
• Claim The Expenses For The ISO CertificationThe registered MSME can seek the reimbursement of the operating cost that was spent for recognition of ISO certification.
• Concession In Electricity BillsThis concession is accessible to all the Enterprises that have the MSME Registration Certificate by providing an application to the department of the electricity along with the certificate of registration by MSME.
• Subsidy On Patent RegistrationA hefty 50% subsidy is given to the Enterprise that has the certificate of registration granted by MSME. This subsidy can be availed for patent registration by giving application to respective ministry.
• Industrial Promotion Subsidy EligibilityBusinesses registered under MSME are also qualified for getting a subsidy for Industrial Promotion as recommended by the Government.
• Protection Against Delayed PaymentsSometimes, the buyers of services and products from the MSME’s/SSIs tend to delay the payments. The Ministry of MSME lends a helping hand to such Businesses by giving them the power to collect interest on the payments that are deferred or delayed from the buyer’s side. The completion of such disputes has to be done in minimum time through reconciliation and adjudication.
• Special Consideration On International Trade FairsFinancial assistance is provided on a reimbursement under the International Cooperation Scheme basis to the industries/enterprises Associations and registered societies/trusts, State/Central Government organizations, and organizations connected with MSME for delegation of MSME business to other countries. It is for discovering new areas of MSMEs, contribution by Indian MSMEs in trade fairs, international exhibitions, buyer-seller meet & for holding international conference & seminars which are in the concern of MSME sectors.
• Waiver Of Stamp Duty And Registration FeesAll new industrial units containing MSME Registration & expansions will be exempted from payments of Stamp Duty & Registration fees in India.
• Bar Code Registration SubsidyAll Enterprises that have MSME Registration can gain Bar Code Registration subsidy as declared in the scheme.
• Subsidy On NSIC Performance And Credit RatingsEnterprises that encompasses MSME Registration can gain Subsidy on NSIC Performance & Credit ratings as stated in the scheme.
• Eligible For Industrial Promotion SubsidyAll Enterprises that are registered under MSME Registration are qualified for Industrial Promotion Subsidy (IPS) as stated in the scheme.
• Access To TendersThere are numerous government tenders that are disclosed only to MSMEs to encourage small business involvement in India.
• Benefits Of Reservation PolicyIt ensures increased production of consumer goods in the small scale enterprises as well as enlarge employment opportunities throughout setting up small scale industries.
• 15% CLCSS Subsidy To Purchase Of Plant & MachineryThe Ministry of MSME is operating a scheme particularly CLCSS “Credit Linked CGSTI Subsidy Scheme” for technology up-gradation of MSE.

  The revised scheme aims at assisting technology up-gradation of MSEs by giving a 15% capital subsidy (limited to maximum Rs.15 lakhs) for the purchase of Plant & Machinery.

• Reservation Policies To Manufacturing/Production SectorReservation of items for exclusive manufacture in SSI sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this text-center sector.

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