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MSME or SSI Registration
(Micro, Small and Medium Enterprises)
MSME stands for Micro, Small and Medium Enterprises. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. MSME registration or SSI registration certificate helps businesses avail multiple government subsidies and benefits MSMED act.
Micro, Small and Medium-sized Enterprises in both the manufacturing and service sector can obtain MSME Registration certificate or SSI registration under the MSMED Act. Although getting MSME registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.
Why is MSME Registration Important for Small Business?
MSME registration is really important for developing the transparency and accountability of the above-mentioned industries, Government of India has basically categorized these industries which are known as MSME- Micro, Small and Medium Enterprises. MSME is actually an authorized body that helps in promoting these industries throughout the country with the help of officially legalized Act.
One of the unique advantages of MSME registration is that it authorizes numerous incentives and incentives to industries included under MSMED Act. In order to subscribe under MSME, a MSME registration procedure is mandatory. Apart from the enterprises as mentioned above, some firms, public and private limited companies, LLPs are also eligible to apply for registration under MSME to avail its benefits.
Benefits of MSME Registration Online:
Easy Bank Loans – All the business which is registered under the MSME can avail the benefits regarding the bank loans. Banks provide the collateral free loans where your property is not pledged with the Banks. Govt and SIDBI both create a separate legal entity which works to implement this scheme on the all small and medium business enterprises.
Reservation Benefits – Government also amend the industrial act where every small business which is registered under the MSME can avail this scheme where you can increase your production of the goods and employment opportunities in the country.
Easy to open a business bank account or any other license registration – MSME Registration Certificate treat as legal entity proof of the business so you can easily open a current bank account or mentioned your registration while making another license like GST Registration etc.
Participate in the International Trade Fairs – All the small business have to expand their business across the India or on an international level which is required to exposure and support from the government. Govts provide benefits to participate and special consideration in the international and national trade fairs which is organized by the MSME Department.
Octroi Benefits under MSME- Small enterprise have to pay the octroi on the goods and services which are delivered by them so its increase the unnecessary cost some time. In this scheme, govt provides the refund of the octroi which is imposed on the goods and services.
Stamp Duty and Registration Charges Waived off – Previously all the enterprise which are expanding their business in the IT Park or SEZ they avail the benefits under the Stamp Act but now all the small enterprise also can avail these benefits.
An exemption under the Income Tax as the Direct tax – All the small business which is doing some really innovative or towards the society improvement then they can take the benefits of the income tax in the initial years. even under the startup India scheme, same benefits are introduced by the government.
Get Reimbursement under the Bar Code Registration – Small Enterprise has required lot of the mandatory registration to run their product based business so all the manufacturing units required the barcode registration. Under this scheme, you are eligible for the subsidy under the barcode registration.
Various Subsidy on the NSIC Performance and Credit Rating- Under this scheme, all the small enterprise can avail the benefits of the subsidy on various expenses through NSIC Performance.
Industrial Promotion Subsidy – Under this scheme govt wants to promote the small enterprise so they provide benefits regarding industrial promotion in terms of subsidy.
Protection in the Delay- Payments from Buyers – This is the most common problem for the small business. Buyers are always dealy in the payments to the small business but under this scheme, all the enterprise are protected and can file a case against the buyer & settlement of the dispute in the minimum time.
Reduction in rate of the Interest by the major banks – Under this scheme all the major banks have some policy regarding the bank’s loan for the MSME which is following –
1. 40% of the total advances must go to micro and small enterprises involved which are in manufacturing having an investment in plant and machinery up to Rs.10 lakh and for service enterprises having the investment in equipment up to Rs.4 lakh.
- 20% of the total advance to micro and small enterprises should go to manufacturing enterprises that have above Rs.10 lakh till Rs.25 lakh investment in the plant and machinery and for service enterprises that have investments in equipment above Rs.4
3. To simplify, 60% of the advances must go to microenterprises.
Get Capital Subsidy – Under this scheme, all the enterprise got the 15% capital subsidy so they can purchase the plan and machinery for the same.
Security Deposit Waived off– Small Enterprise have very small amount of the working capital to run their business but in some registration, they have to deposit the security money so under this scheme it has been waived off for the MSME registration enterprises.
Concession in the Electricity Bills – All the small enterprise which have MSME Udyog aadhar Certificate can avail the concession in the electricity bills in the particular areas.
Got the benefits in ISO Certificate – Small enterprise while apply for the big projects, they have to show their credibility which required the ISO Certification. In this scheme, you got the subsidy for the ISO Certification.
Preference in the Government Tenders – MSME certified enterprise is preferred in the government tenders during the bid. so this is one of the most important advantages to win the big tenders.
Got the Subsidy on the Patent Registration – There are a lot of the innovative small firms which are doing some innovative things & required a patent registration which is really expensive. Under this scheme you got the 50% waived off in the patent government registration fee.
MSME Registration Process
The usual time is between 1-2 days to complete all the documentation of the registration.