30 June 2021
While MSMEs are considered as growth engines of an economy, they still face several operational & financial challenges hindering their growth prospects. Therefore they need to be provided with an impetus not just to sustain but also to keep the spirit of entrepreneurship alive.
Here are some of the key benefits of obtaining MSME registration in India-
MSME registered entities can avail the benefit of 1% on bank overdraft interest which could differ from bank to bank. This is especially significant during unfavourable market conditions.
MSME registered entities are entitled to a hefty 50% subsidy on patent registration!
In case a buyer delays payments to MSMEs beyond 45 days from availing their products or services, they are required to pay interest on the delayed payments at 3 times the rate notified by RBI, thus encouraging timely payments and providing liquidity to MSME businesses
The Credit Guarantee Trust Fund Scheme is an initiative to provide collateral-free loan to MSMEs, undertaken by Government of India, SIDBI and the Ministry of Micro, Small and Medium Enterprise.
Businesses that have been registered as MSMEs are eligible for subsidies for Industrial Promotion as provided by the Government
MSME enterprises can apply for concession on electricity bills by applying to the department of electricity along with their MSME registration certificate. This especially aids in boosting production activities in the manufacturing sector.
MSME enterprises can claim a reimbursement for all expenses incurred on obtaining ISO Certification
There are a lot of government tenders that are open exclusively to MSMEs, thus supporting their growth and promoting small business participation in India.
The contents of this article are for information purposes only and do not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc. before acting on the basis of the above write up. By the use of the said information, you agree that the Author / Treelife Consulting is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof.
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