MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. MSME registration is a mandatory task for any business to start and operate in India. MSME categorized under two main categories, such as manufacturing enterprises and service enterprises.

1. Benefits of MSME Registration
MSME stands for Micro, Small and Medium Enterprises. In a
developing country like India, MSME industries are the backbone of the
economy.MSMEregistration isa mandatorytaskfor anybusinesstostart
and operateinIndia. MSMEcategorized under twomaincategories, such
as manufacturing enterprises and service enterprises.
MSME’s are rapidly growing with regular support from the
government and youths who are inspired and bold enough to start their
own venture. Therefore, knowledge about the registrationprocessand its
benefitsisan absolutemust inorder to givea boost tothe entrepreneurial
spirit of MSME & SSI founders.
Benefits of MSME Registration
1. Bank Loans (Collateral Free):
The Government of India has made collateral-free credit available to all
small and micro business sectors. This initiative guarantees funds tomicro and
small sector enterprises. Under this scheme, both the old as well as the new
enterprises can claim the benefits. A trust named The Credit Guarantee Trust
Fund Scheme was introduced by the GOI(Government Of India), SIDBI(Small
Industries Development Bank Of India) and the Ministry of Micro, Small and
Medium Enterprise to make sure this scheme is implemented (Credit
Guarantee Scheme) for all Micro and Small Enterprise.
2. Credit Linked Capital Subsidies for MSMEs:
Technology-driven MSMEs may not be able touse their resources to full
potential due to lack of the latest technology. Under this scheme, MSMEs are
provided upgraded technology to replace their old and obsolete ones. The
Scheme aims to provide 15% capital subsidy for technology up gradations.
There is also a ceiling in 15% capital subsidy which is 15 Lakh for induction of
well-established and improved technology. It is given for in approved sub-
sectors/products.

2. 3. Subsidy on Patent Registration:
A hefty 50% subsidy is given to the Enterprise that has the certificate of
registration granted by MSME. This subsidy can be availed for patent
registration by giving application to respective ministry.
4. Low Interest rate on loan
Businesses or enterprises after obtaining MSME registration certificate
can avail a benefit of 1% on the Overdraft loan and as per Union budget 2019
MSMEs registered under GST can get 2% interest subvention. It is available for
incremental loans of Rs 1 crores under the MSME Credit Scheme
5. ISO Certification Charges Reimbursement
The registered MSME enterprises can claim the reimbursement of the
expenses that were spent for the ISO certification.
6. Market Development Assistance Scheme for MSME :
Under this scheme, The Central Government follows a Price and
Purchase Preference policy wherein around 358 items are listed for exclusive
purchases by Central Government from the MSME units only. They are
numerous support like marketing assistance even for those products, which are
manufactured by MSMEs and do not fall under the purview of Reservation
Policy.
7. Tender Preference to MSME:
From time totime government has announced many tenders where only
MSME Industries can apply. Recently, as a part of Covid-19 relief package, the
Finance minister has announced that there are issues of unfair competition
from foreign companies in government procurement tendersdue tothe size and
strength differ and govt will not allow global tenders in such schemes up to Rs
200 crore.

3. 8. 100% tax exemption for Innovative start-ups:
No Income Tax required to be paid in 3 year out of 7 Years – i.e. Start-
ups are eligible for getting 100% tax exemption on profit for a period of three
years in a block of seven years provided that annual turnover does not exceed
Rs 25 crores in any financial year. It is allowed by way of Deduction under
Income Tax Act. In this deduction, Companies up to 10 Years in existence are
still considered start-up. Income Tax Law also allows credit for minimum
alternate tax (MAT) tobe carried forward for up to 15 years instead of 10 years.
9. Overdraft Interest Rate Exemption
Businessesor enterprisesregisteredunder MSMEcanavaila benefit
of 1% on the Over Draft as mentioned in a scheme that differs from
bank to bank.
10. Industrial Promotion Subsidy Eligibility
Enterprises registeredunder MSME are also eligible for a subsidy
for Industrial Promotion as suggested by the Government.
11. Protection against Payments (Delayed Payments)
At times, the buyers of services or products from the MSME’s
or Small Scale Industries tend to delay the payment. MSME ministry
provided a helping hand to such enterprises by giving them the right
to collect interest on the late payments from buyers. The settlement
will be done through conciliation and arbitration and it will be resolved
in minimum time.
Payment term are provided under this rules are-
1. On or before the agreed date of payment or
2. In case there is no mention of the date of payment, Within 15 days
from the day they had accepted the goods and services from MSME
or SCI registered business.
The Micro, Small and Medium Enterprises Development Act,
2006, has made strict provisions for charging of interest so that
problem of delayed payment can be mitigated. In these provisions, if

4. any buyer fails to make payment to MSMEs as per agreed terms or a
maximum of 45 days, Buyer need to pay monthly compounded
interest which is three times of the rate notified by the Reserve Bank
of India.
12. Fewer Electricity Bills:
This concession is available to all the Enterprises that have the MSME
Registration Certificate by providing an application to the department of the
electricity along with the certificate of registration by MSME.
For More Details visit us:
Contact No. 9112211457
Email: help@msmeregistration.org
Website: www.msmeregistration.org