certifies the enterprises to recognise as Micro, Small or Medium Enterprise.
MSME means micro, small and medium enterprises, and these are the backbone of any developing economy country. To support and promote MSME,Government of India has provided many benefits for small scale units or medium small and micro enterprises (MSME). In order to get these benefits, any enterprises should register itself as MSME enterprise under MSMED Act.
Advantages of obtaining MSME registration in India
Followings are advantages of obtaining MSME registration in India.
1.Collateral Free Business loans from banks:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the GOI to make available collateral-free Loans to the micro and small enterprise sector. Both the existing and the new MSME enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, Government of India and Small Industries Development Bank of India (SIDBI), established Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to effectively implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
2. 50% subsidy on Patent registration
Enterprises registered Under MSME can avail 50% subsidy for patent registration by making application to respective ministry.
3. 1% exemption on interest rate on overdraft
Enterprises registered Under MSME can avail benefit of 1% exemption on interest rate on Over Draft as mentioned in the scheme.
4. Eligible for Industrial Promotion subsidy
Enterprises registered Under MSME are eligible for Industrial Promotion Subsidy as may be prescribed by the government in this behalf.
5. Protection against delayed payments
The Ministry of MSME gives protection against delay payment to MSME Registered Enterprises. If any micro or small has MSME registration Certificate and supplies any type of goods or services, then the Purchaser is required to make payment on or before the date agreed upon between the purchaser and the micro or small enterprise. In case of non payment of Outstanding amount on agreed date,then the purchaser is required to make payment within fifteen days of acceptance of goods or services. In case of failure by the purchaser to make payment on agreed date, the purchaser is required to pay compound monthly interest. The penal interest chargeable for late payment to a MSME enterprise is 3 times of the bank rate notified by the Reserve Bank of India.
6. Concession in electricity bills:
Enterprises registered Under MSME can avail Concession on electricity bill by making application to electricity department along with MSME Registration Certificate.
7. Reimbursement of ISO Certification charges
Enterprises registered Under MSME can claim reimbursement of ISO Certification expenses by making application to respective authority.
8.loans up to Rs 1 crore in 59 minutes
To improve the credit availability for micro, small and medium enterprises (MSMEs),Government of India launched a new web portal ( https://www.psbloansin59minutes.com/home) which allows one to avail loans up to Rs 1 crore in 59 minutes.The Portal sets a new benchmark in loan processing and reduces the turnaround time to 59 minutes. Subsequent to this in principle approval, the loan will be disbursed in 7-8 working days.
Eligibility of Registration
MSME can be registered by:
a) Hindu Undivided Family (HUF)
b) Private limited company
c) One person company
d) Partnership firm
e) Producer company
f) Limited company
The procedure of registering MSME
To know procedure Contact@firstname.lastname@example.org or call at 7678456921