Our Indian Government has always been in favor of MSMEs (Micro, small and medium enterprises) because of the Vision of our Prime Minister on an Entrepreneurial Economy. Once He said that He wants our youth to Create Jobs Rather searching for it. To support this Motive Finance Ministry was continuously launching schemes for the Benefits of MSMEs. In the recent announcement of the Disbursements of Rs. 20 lac Cr. Economy booster, FM has announced many facilities and supportive measures for MSMEs.
Micro-Small & Medium Enterprises (MSMEs) contribute largely to the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly important, as it enables these enterprises in availing benefits from various government initiated schemes. MSMEs are classified into two categories, such as manufacturing and service enterprises.
MSMEs can register by simply visiting the website and filling the application form. It’s an online portal that helps in the MSME registration process. Applicants can get MSME certificate with lifetime validity in 2-5 working days and this certificate is for enterprises in both the manufacturing and service sectors. There is no limit concerning the name used by an individual to register for new or existing businesses.
There are many advantages of obtaining MSME registration in India, which can be only availed if the business had registered itself as an MSME under the MSME Act. The following are a few advantages or obtaining SSI/MSME registration in India:
The Government of India has made collateral-free credit available to all small and micro-business sectors. This initiative guarantees funds to micro and small sector enterprises. Under this scheme, both the old as well as the new enterprises can claim the benefits. A trust named The Credit Guarantee Trust Fund Scheme was introduced by the GOI(Government Of India), SIDBI(Small Industries Development Bank Of India) and the Ministry of Micro, Small and Medium Enterprise to make sure this scheme is implemented (Credit Guarantee Scheme) for all Micro and Small Enterprise.
No Fees for ISO Certification:
To promote the standards and certifications received by MSMEs in & to enhance their performance across sectors, all registered micro and small industries can avail an exemption of all expenses incurred for obtaining ISO 9000, ISO 14001 and HACCP certifications.
50 % Gov Subsidy on Patent Registration
A 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.
Exemption in Income Tax Books
Several MSME registration benefits can save lakhs of the amount that may be assessable to tax in the absence of this certificate. The benefit of a presumptive basis of taxation is available to enterprises, which relieves one from maintaining detailed books of accounts and undergoing audit procedures.
Interest Rate Exemption in Overdrafts
MSME Businesses or enterprises registered can avail a benefit of 1% on the Over Draft as mentioned in a scheme that differs from bank to bank.
Delayed Payment Protection
At times, the buyers of services or products from the MSME’s tend to delay the payment. The Ministry of Micro, Small and Medium Enterprise lend a helping hand to such enterprises by giving them the right to collect interest on the payments that are delayed from the buyer’s side. The settlement of such disputes must be done in minimum time through conciliation and arbitration.
Less Electricity Bills
This Electricity Bill concession is available 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.
MSMEs are rapidly growing with regular support from the government and youths who are inspired and bold enough to start their venture. Therefore, knowledge about the registration process and its benefits is an absolute must to give a boost to the entrepreneurial spirit of MSME founders.