MSME Registration
Overview
In order to support and promote these businesses, the Government of India has come up with the Micro, Small and Medium Enterprises Development (MSMED) Act, which offers various benefits and incentives to SMEs that register under this Act.
Benefits of MSME Registration
Collateral Free Loans
Obtaining loans is often challenging for Small & Medium-size businesses. However, SMEs that get registered under MSME, banks and other financial institutions
Overdraft Interest Subvention
MSMEs can avail the benefit of interest subvention or low interest rates on their overdraft facilities, up to a certain limit.
Reduction of taxpayers’ burden
Subsidy on Patent Registration MSMEs can reap almost 50% subsidy on the total cost of Patent registration, which makes it highly affordable for them to protect their inventions and innovations.
Industrial Promotion Subsidy
MSMEs can take benefits of the industrial promotion subsidies given for the purchase of plant and machinery, which is helpful in upgrading their technology, machinery and thus overall infrastructure.
Timely Payments by Buyers
Micro, Small & Medium-size enterprises mainly face financial issues due to delay in payments from their suppliers, or customers. Due to which, their cash flow is affected which leads to financial stability.
Free ISO Certification
ISO certification is important for Small & Medium-size businesses as it helps build credibility and trust among their potential customers, suppliers or other business associates. However, obtaining ISO certification can be expensive, especially for smaller businesses.