What is MSME Registration?

The economic growth of the country largely depends on the growth of its manufacturing and service sectors. Nowadays in developing countries, manufacturing and service sectors include a large number of small enterprises that are in the developing nature. Due to their significance in the development of an economy, the government ensures that the manufacturing and services sectors must receive all types of benefits and provides them a positive environment to nurture.

Micro, small and medium enterprises are the backbone of any economy and treated as an engine for economic growth. It helps businesses to avail of different government subsidies and benefits.

  MSME Registration Benefits in India

1. Participate in the international trade fair 

All independent small traders need to grow their business across India or on a global level which is required to disclosure and support from the government. The government gives advantages to take an interest and special consideration in the universal and national trade fairs which is conducted by the MSME department.

      2. Easy bank loans 

All the business which is enrolled under the MSME may take advantage in regard to bank loans. Banks give collateral-free credits where the property is not guaranteed with the bank. It is now easy for small businesses to raise funds once they are registered with the MSMED Act to fulfill financial needs. The government helps in giving sponsored loans from banks with a low rate of interest. It is one of the most important Benefits of MSME in India.

      3. Get a 50% discount on trademark registration 

In the event of enrolling a company trademark then government fees are 9000. On the other hand, one can shorten the government fees by 50% by using the MSME registration certificate or udyog adhaar registration certificate.

      4. Advantages from central government 

The central government declares plans to benefit small industries from time to time, for example, a credit guarantee scheme. The Government has made collateral-free loans available to all small and micro business industries. This action ensures funds for micro and small sector businesses. Under this plan, both enterprises whether old or new can claim the advantage. A trust titled the credit guarantee trust fund scheme was introduced by the government of India. Small industries development bank of India and the ministry of micro, small, and medium enterprise to ensure this credit guarantee scheme is executed for all micro and small enterprises.

      5. Get subsidy on the patent registration 

There are great deals for the latest new small firms which are doing some creative things & required a patent registration which is extremely expensive. You will get a 50% subsidy in the patent government registration fee under this scheme. 

      6. Preference in the government tenders 

MSME ensured enterprise would be preferred in government tenders.

      7. Overdraft interest rate exemption

Businesses registered under MSME may get an advantage of 1% on the overdraft as quoted in a scheme that varies from bank to bank.

      8. Industrial promotion subsidy eligibility

Businesses registered under MSME are eligible for a subsidy for Industrial Promotion as proposed by the Government of India.

9. Fewer electricity bills

All the enterprises that have an MSME registration certificate may get this benefit by giving an application to the electricity department.

      10. ISO certification charges reimbursement

Enterprises that are registered under MSME can claim the repayment of the costs that were spent for the ISO certification.

      11. Giving facility for up-gradation of technology used in the industry 

The SSIs come up low on financial capital as compared to the different industries. Generally, these industries use outdated technology for the manufacturing of goods and rendering of services. Thus, the government ensures the small scale industries are given funds under the Capital Aid for Technological Upgradation Scheme to enhance the equipment they use.

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Shruti

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