What is MSME?
MSME is the abbreviation for Micro, Small and Medium Enterprises. It is a scheme of government that mainly targets providing benefits to medium and small-scale entrepreneurs in order to boost their businesses in today’s very competitive world. MSME scheme provides loans to new entrepreneurs, thereby assisting them in setting up their new businesses by removing their financial crunch.
Benefits of MSME Registration
- Due to the MSME Registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
- It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- Once registered the cost of getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
- MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders.
- There is a One Time Settlement Fee for non-paid amounts of MSME.
- The Udyam Registration will help the MSMEs in availing the benefits of government schemes such as Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments, etc.
- MSMEs are eligible for priority sector lending from banks.
- MSMEs get the benefit of a government security deposit waiver that is helpful while participating in e-tenders.
- Any number of activities including service or manufacturing or both may be added or specified in one Registration.
- Barcode registration subsidy.
- Exemption scheme from Direct taxes.
- ISO certification fees reimbursement.
- Electricity bills concession.
- Special consideration in International trade fairs.