KNOW WHAT IS MSME

MSME stands for Micro, Small and Medium Enterprise. In developing country like India, these enterprises acts as a backbone to the economy of India. The major reason behind this is:

• Micro, Small and Medium Enterprise serves as the producer of raw material to the large scale industries.
• These industries deals with the production of the which are not produced by the large scale industries.
• Due to MSMEs there is more and more creation of job opportunity in the industry for rural and backward areas, the reason is in this target area the large scale industries does not operate.
• These industries have slowly and steadily revived the backward classes in the far reaches by providing employment.
• Due to increase in employment & other opportunities access to loans and other services became reachable for people of backward area.
• These industries constantly support in the up gradation of technology, infrastructure development, and helps to trigger the modernization of India.

Though online business registration for these industries is not mandatory. However experts always recommend for such registration due to the variety of benefits offered by the government.

BENEFITS ACTING AS BLESSING TO THE MSMEs

MSME registration is very necessary in order to avail benefits offered by the government for ease of business. Some of these benefits are:

1. Collateral Free credit: Government has made the credit avail without collateral. This initiative of collateral free credit guarantees the funds to MSMEs.
2. Attractive interest rate of bank loans: Bank loan rates are generally high .However for the ease of business to MSMEs who have taken MSME registration, government has provided bank loans at relatively low interest rates as compared to the interest rate charged on loans to large scale industries.
3. Subsidized rates on resources: The major beneficial reason is MSMEs which are Registered get resources like electricity, land water and other required resources at relatively cheaper rates . The major cost of the industries get into the procurement of resources and raw material. However through this subsidy the MSMEs can operate with low cost and provide better quality along with profits.
4. Quick & stress free Process: The fund raising become fast processing and online account access, for meeting the exact needs of small businesses at any stage of their growth. This is the initiative of government leads to encourage development.
5. Fast approval process: Since registered MSMEs provides benefits to government therefore they are given higher preferences in terms of approval and permits.
6. Tax rebates & subsidies: For helping business owners ,government offered various tax rebates and capital subsidies to Registered MSMEs.
7. Industrial Subsidies: Businesses registered as MSMEs are eligible for the benefit of Industrial Promotion subsidies provided by the Government.
8. Direct Tax Laws Exemption: In the initial year businesses depending on business activity, registered as MSMEs are eligible to enjoy Direct Tax Exemption provided by Government.
9. Protection against Delayed Payments: MSMEs are continuously facing a major risk of getting delayed payments. The initiative is taken by the government to reduce the risk by the scheme that The buyer of MSME seller shall pay the amount within 45 days of accepting the products or services otherwise compound interest on the amount shall be levied on such buyers. The interest rate is three times of the notified rate.
10. Application to Government tenders: the business having MSME registration have the opportunities to apply for government tenders.
11. Market assistance from the government and Export Promotion: an MSME registered enterprise allow access to various international cooperation platforms and support new business connections for on trade-related aspects with different countries.
12. Export Incentives: The government also provide various incentives for the purpose to encourage export of goods and services by MSMEs through tax exemption, incentives, subsidies and technical support.
13. Subsidy on Credit ratings: Scheme has been introduced under which enterprises that are having MSME Registration are eligible to avail Subsidy on Credit ratings.
14. Saving government fees: Various government fees are reduced if MSME registered enterprises are getting such registrations:
    • Trademark registration- The MSME registered enterprises are required to pay only 50% of fees then the other entities without MSME.
    • Patent registration- While applying for patent registration, the MSME registered enterprises is provided with the subsidy of 50% on the fees.
    • ISO certification- reimbursement of the expenses incurred for the ISO certification can be claim by the registered MSME enterprises.
    • Bar code registration- The Ministry in order to encourage MSMEs to use bar-codes provides to the MSME registered enterprises reimbursement of 100% registration fees for bar coding.

MSME being the backbone of Indian economy is very important part of industry. Thus increased preference and advancement of MSMEs leads to growth of market, industry and ultimately the economy of India.

ITS TAKES JUST ONE HOUR TO DO MSME REGISTRATION
AND LIFETIME TO ENJOY ITS BENEFITS.