MSME stands for the Ministry of Micro, Small & Medium Enterprises.
MSME enterprises are the strong pillar of any growing economy and are the backbone of economic growth. That the reason, with the help of several schemes and subsidies, the Government of India encourage MSME through the MSMED Act. To gain various incentives provided under the MSMED Act it is important to have registration of Micro, Small & Medium Enterprises. MSME is divided into two parts that is manufacturing enterprises where the business involved in the manufacture of goods or production and service enterprises in where the business engaged in the rendering of services or business of providing or services, in other words, it is well-defined in terms of an asset in equipment.
Central Government Schemes for development of Micro, Small & Medium Enterprises.
Central Government runs different Schemes to help Micro, Small & Medium Enterprises. Schemes like Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the Government provided collateral-free loans to the MSMEs. Further, Financial aid is also provided to the MSMEs through Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana from Small Industries Development Bank of India (SIDBI).
Benefits Of Having MSME / SSI Registration Certificate
Easy loans from banks:
the Government has launched the Credit Guarantee Fund Scheme for Micro, Small & Medium Enterprises of India to make them run their business smoothly. Any enterprise may be old or new both are eligible under the scheme. To implement the Credit Guarantee Fund Scheme for Small Enterprises (SIDBI) Small Industries Development Bank of India along with government, established a Trust to help Small Enterprises.
Easy Licenses, approvals, and registrations:
In any field for business, It will be easy for enterprises that are having MSME Certificate to get Licenses, approvals, and registrations from the respective authorities.
Domestic and Foreign Business Expo
Micro, Small and Medium Enterprises will get special preference and will also be providing financial assistance by the government for participating in Domestic and foreign expos by. Which helps small enterprises to project themselves at a bigger level. MSME not only provides financial assistance it also motivates people to become entrepreneurs by guiding them on how to run businesses successfully.
Waiver of Registration Fees and Stamp Duty:
Stamp Duty and Registration fees are exempted for all new industrial units having MSME Registration.
Exemption in Direct Tax Laws:
depending on business activity under the scheme by Government the MSME Registered Enterprises can take benefit of Direct Tax Exemption in the initial year of business
Interest rate exempted 1% on OD
As mentioned in the scheme MSME Registered Enterprises can avail the benefit of exemption for 1% on the interest rate on OD
Special Discount in electricity bills:
MSME Registered Enterprises can avail Concession on electricity bill by making an application to the electricity department along with MSME Registration Certificate
Security Deposit Waiver in Government
Enterprises that have MSME Registration get benefits while making an application for Government Tenders:
tender issued for free of cost
Waiver from payment of Earnest Money
Special Preference in Government procuring
MSME Registered Enterprises have a preference for procuring tenders of government projects. o MSME Registered organization will get more importance while making an application for government tenders.
Technological Upgradation for MSMEs:
The government, under the Capital Aid for Technological Upgradation Scheme, is enabling MSMEs to upgrade their equipment through the latest technology. To do so, the government is encouraging more MSMEs to upgrade their technology and infrastructure and is enabling them to get low-interest loans from banks.
How Valcus help with MSME registration
Document submission to MSME registrar
We can help you to Obtain an MSME certificate in 10 to 20 days, which is subject to Government processing time.
Valcus will provide Free Consultation.
Got questions? Request a call from a Valcus Business Advisor Now.
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