Top 10 Benefits of MSME Registration in India: Everything You Need to Know

Top 10 Benefits of MSME Registration in India

Here is the list of the 10 Top Benefits of MSME Registration / UDYAM Registration in India. The MSME (Micro, Small & Medium Enterprises) sector enables citizens of the country to pursue their entrepreneurial dreams, resulting in job creation and diversification of the region’s Gross Domestic Product (GDP). By offering access to loans, employment opportunities, and other services to the artisan class, they have played a vital role in reviving this class in remote areas of India. Moreover, they consistently promote infrastructure development, technical advancements, and modernization of the nation and society.

In terms of percentages, the MSME sector accounts for a remarkable 30% of India’s GDP, 45% of its manufacturing output, and over 48% of its exports. The Indian government has reaffirmed the MSME Act of 2006 and proposed the MSME (Amendment) Bill of 2018 to support MSMEs. The need for routine inspections to verify investments in equipment and machinery has been eliminated. MSME operations are now allowed to be transparent, impartial, and non-discriminatory.

1. Collateral-free financing:

The Indian government offers collateral-free bank loans to all small and micro businesses through the Credit Guarantee Trust Fund Scheme. This program provides financial security to both new and old businesses.

2. Lower interest rates:

MSME-registered businesses benefit from a reduced rate of interest compared to other enterprises, and priority credit is maintained for the MSME sector. Banks must distribute a minimum of 60% of their total lending to the MSME sector, with credit to micro and small firms expected to increase by 20% in the next two years.

3. Patent registration subsidy:

MSMEs registered with the MSME Ministry are eligible for a 50% discount on patent registration costs, motivating startups and small companies to continue developing novel ideas and technologies.

4. Tax exemption:

MSMEs enjoy several benefits that help them save money that would otherwise be subject to taxation, including a potential taxation basis that relieves them of the need to maintain thorough audit procedures and comprehensive books of accounts.

5. Protection against delayed payments:

The Ministry of MSME supports MSMEs by granting them the ability to charge interest on delayed payments from buyers, which must be arbitrated and mediated within a reasonable time. If a buyer receives goods or services from an MSME-registered enterprise, they are required to make the payment within 15 days of acceptance or on a mutually agreed-upon date. In case there is no mention of the payment date, this rule applies. If the payment is delayed for more than 45 days after acceptance, the buyer must pay the compound interest along with monthly interest on the agreed-upon sum. The rate of interest is three times what the Reserve Bank of India has stated.

6. Electricity bill discounts:

All businesses with an MSME registration certificate are qualified for electric bill discounts, enabling firms to increase output and accept more orders without worrying about incurring capital costs for things like electricity and maintenance.

7. Reimbursement of ISO certification:

MSME-registered businesses are not charged any ISO certificate fees if they submit an application to the appropriate authority with their registration certificate, which is required to increase the standards of MSMEs’ efficiency throughout the bidding process.

8. Government marketing and promotion assistance:

The Indian government organizes international trade-related events, craft fairs, exhibitions, and exchange programs, granting MSMEs access to these venues for international cooperation on trade-related issues with various countries and encouraging new commercial relationships.

9. Technology upgradation support:

The government reimburses project costs for MSME sector units and expenses incurred for implementing clean technology, preparing audit reports, and providing subsidies for licensing products per national and international standards, increasing cost-effectiveness and promoting the use of clean energy in manufacturing.

10. Access to international trade:

MSME-registered businesses receive funding from the Indian government to attend international trade shows, exhibitions, business meetings, seminars, and conferences worldwide, enabling exposure to the latest facet of industrialization.

Looking to register your business as an MSME and avail the benefits offered by the government of India? Look no further than StartUp-Kro Team! Our team of experts can guide you through the entire process of MSME registration and help you take advantage of the numerous benefits that come with it. From assistance in filling out the application to providing necessary documents, we offer end-to-end support to ensure a hassle-free registration experience.
So why wait? Contact us today and get your business registered as an MSME!

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