Top advantages of getting business an MSME registration
The MSME registration is not statutory. However, the MSME registration process in India has been conceptualized to provide maximum benefits to all types of enterprises. After registration, any enterprise becomes qualified to reap the benefits offered under the MSMED Act. Some of the benefits from Central Government include easy sanction of bank loans (Priority sector lending), lower rates of interest, excise exemption scheme, exemption under Direct Tax Laws and statutory support such as reservation and the interest on Delayed Payments Act.
Obtaining MSME enlistments should be possible by micro, small and medium size enterprises. Remarkably, these are the real specialty units that drive our economy and its development. The MSME registration is an online procedure and makes looking for assistance from experts substantially more simpler. Here, we detail the advantages of getting MSME registration for your business.
In this article, we enroll the best advantages that can be availed with the grant of MSME registration These incorporate monetory as well as a non-fiscal preferences identifying with trade and enterprising advancement.
Priorit Lending: Whether you're the proud proprietor of a front line innovation business or a masala packing organization, employing country ladies, credit and advance are something that your business will definitely require for long-and short term financing. Banks, by righteousness of the bearings issued by the Reserve Bank of India, have certain reserved finances that need to compulsorily be given to MSME organizations. Delivering this endorsement qualifies one for profit this credit on a need premise with less problems.
Less interest rates and accessibility and access to more prominent credit: without insurance security (any property/money given as a protection from an advance), numerous entrepreneurs may discover it incredibly difficult to secure a loan for beginning in their industry. In any case, with a MSME Registration, all banks are specifically instructed to offer loans at interest rates lower than the usual and one may be able to avail this benefit from several banking institutions for their financing needs.
Credit Linked Guarantee Scheme: The Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India (SIDBI) have built up a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) explicitly to actualize Credit Guarantee Fund Scheme for smaller scale and little ventures. This plan permits security free advances of up to 50 lakhs for individual MSMEs.
A small business will also need to address the financial requirements of the company in the course of doing business. Finance is not easy to procure, and other sources of loan such as angel investors and venture capitalists offer finance but also seek to control part of the company in return.
A small business owner may not look forward to relinquishing control of the business.MSME loans are specifically designed to meet such requirements of small businesses. They are an excellent source of finance for business owners who wants to avoid liquidation of control
MSME loans are mostly utilised for short-term requirements by small businesses. This arrangement provides a certain amount of flexibility to the borrower, as there is no long-term commitment required on his/ her part. Having a short-term commitment also allows the management room to manage the cash flow and allocate available resources efficiently.
Reimbursement of ISO Certification: To promote the standards and certifications received by MSMEs in a bid 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.
Exclusive purchases and sheltering from competition: As part of the MSME Market Development Assistance scheme, the Central Government follows a Price and Purchase Preference policy under which more than 358 items are listed for exclusive purchases by Central Government from medium, micro and small units only.
Capital Aid for Technological upgradation for MSMES:
Some MSMEs may not be able to use their resources to full potential due to lack of the sophiscated technology required. The government, under the Capital Aid for technological upgradation scheme, helps these enterprises upgrade their equipment through latest technology by helping them get low-interest loan from banks.
MSME market development assistance for Micro and Small enterprises:
Apart from the reserved products that government has promised to buy from theses MSMEs, they are given marketing assistance even to those products, manufactured by them, which do not fall under the purview of Reservation Policy.
The Indian government has always been in favor of providing benefits to Micro, small and medium enterprises (MSMEs). There are many advantages of obtaining MSME registration in India, which can be only availed if the business had registered itself as an MSME/SSI under MSME ActThe benefits offered to them especially in India are huge in terms of support system given to them by both the central and state government.
For Enterprises engaged in the manufacture or production, processing or preservation of goods, the definition is as follows:
• Micro Enterprise: An enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
• Small Enterprise: An enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
• Medium Enterprise: An enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
I hope now you understand the benefits of MSME registration. If you are going to open small, medium or large company, you need to avail for MSME registration, which is the online process. You can also take the help of the consultant like us. At, Unilex Business consultant we can help you regarding MSME registration. To avail MSE registration, you need to send all the required documents at our email ID. As soon as we receive your documents we will work on it and move ahead to next process. In the event, if you experience any query, you can contact us anytime via phone, email or live chat.