Бизнес и финансы

What are the benefits of MSME Registration?

Last few decades have seen the Micro Small and Medium Enterprises (MSME) sector emerging as highly lucrative and active sector of the Indian economy. The MSMEs have known to play a crucial role in the development and industrialization of the rural and comparatively backward areas by providing immense employment opportunities at a reasonably lower capital.

This has helped to bring down the levels of inequitable development and distribution of wealth that has prevalent in the rural and urban areas. MSMEs contribute greatly to the socio-economic development of the country.

The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to help with the development of the small-scale industries and to draft and manage the policies affecting MSMEs. The Act seeks to facilitate the investments in the MSMEs and enhance the competitive markets. The act also provides the legal framework relating to all the aspects of the MSMEs defining and categorizing them.

The Act provides MSME registration Process and further simplifies the process.

What are the benefits of MSME registration?

1) Collateral free loans up to a limit of 50 lakh.

2) A substantial subsidy of 50% on Patent registration.

3) 1% exemption on the interest rate on overdraft which is bank dependent.

4) Eligibility for the subsidy of Industrial Promotion

5) Protection against any delay in payments from buyers has right to the interest on delayed payments.

6) Multiple income tax and capital gain tax-related subsidies from the government.

7) Concession in electricity bills

8) Eligible to claim for reimbursements of ISO Certification expenses.

9) Access to various development programs resulting in the increase of overall productivity.

10) Support is provided to new micro and small enterprises. Guidelines on how to start a business assessing loans from banks are also provided.

11) Eligible for reimbursement of part of one-time registration fee and annual recurring fee for first three years for using bar-coding.

12) The rates of interest on loan offered to MSMEs are comparatively lower.

13) Businesses registered under MSME are able to obtain government license and certification quicker than the regular process.

What is the procedure to obtain an MSME registration online?

The procedure is easy and straightforward. Following details are required to be submitted:

1. A valid Aadhaar number. An OTP shall be sent for validation on the mobile number linked with the Aadhaar provided.
An applicant or the authorized signatory who is not yet enrolled for Aadhaar shall have to apply for Aadhaar enrolment. Meanwhile, UAM registration must be filed by the concerned DIC on behalf of such applicant/ enterprise, after the production of some documents for alternative identification
Name of the owner/ applicant as per the adhaar card. The name provided must exactly match to that entered in the Adhaar Card lest the applicant will not be able to fill the form further.
Social category to be selected from the given options
Gender
Mention if physically handicapped
Name of the Enterprise/ Business that will be printed on the MSME Certificate and by which the enterprise is known to the general public
Type/ Structure of organization – Sole proprietorship, Co-operative, Private Limited Company, OPC, LLP, HUF etc
PAN number for LLP, Company etc
Location of the plant, which can be multiple