Legal

Benefits of Registering your Business as an MSME in India

MSMEs are classified as per the quantum of their turnovers and capital expenditures, in the following manner:

Enterprise Category Investment in Plant & Machinery/ Equipment Turnover
Micro Does not exceed INR 1 Crore Does not exceed INR 5 Crore
Small Does not exceed INR 10 Crore Does not exceed INR 50 Crore
Medium Does not exceed INR 50 Crore Does not exceed INR 250 Crore

 

Benefits of being registered as an MSME

(1) Collateral-free loans are available to small and micro-enterprises subject to the thresholds and other conditions specified by the Ministry of Micro, Small and Medium Enterprises .

(2) A hefty 50% subsidy is given to the enterprise holding the MSME registration certificate for filing patent and trademark applications.

(3) MSMEs are also eligible for a subsidy for Industrial Promotion as suggested by the government, increasing their chances of obtaining industrial promotion subsidies.

(4) can, by filing a complaint on the MSME Samadhaan Portal, collect interest on payments that are delayed after the invoice payment due date.

(5) Enterprises having MSME registration certificates shall also be eligible for rebates on electricity bills.

(6) Registered micro and small enterprises shall be eligible for 75% rebates of up to INR 75,000/- with respect to obtaining ISO certifications, thus making it easier for new businesses to access the market.

Conclusion

In conclusion, MSME registration offers various benefits to entities which can contribute to the economic development of the country. With regular government support, MSMEs can make a significant contribution to the development of rural areas while creating job opportunities. Therefore, registering as an MSME can help push entrepreneurs to start their ventures and gain access to the benefits that come along with it.

FAQs about MSME

Q1: What is MSME? A: MSME stands for Micro, Small and Medium Enterprises. These businesses play a vital role in the Indian economy, contributing significantly to its growth and development. Entities are classified either as micro, small or medium on the basis of their turnover and investments.

 

Q2: What is The National Board for Micro, Small and Medium Enterprises (NBMSME)? A: The NBMSME is a board established by the Government of India under the MSME Development Act, 2006. It works to examine the factors affecting promotion and development of MSME and recommends policies to the government for the growth of the MSME sector.

 

Q3: What are the benefits of registering under MSME? A: The benefits of MSME registration include (a) easy access to collateral-free loans; ; (b) protection against delayed payments (only to micro and small enterprises); (c) subsidies on patent and trademark applications; (d) reimbursement of ISO certification charges; and (e) reduced electricity bills.

 

Q4: How can I register my business under MSME? A: You can register your business under MSME by visiting the Udyam registration website and filing the registration form.

 

Q5: Can a business change its MSME classification after registration? A: Yes, a business can change its MSME classification anytime (based on its growth and investment) through the Udyam registration portal.

 

 

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Disclaimer – The content of this document is for information purpose only and does not constitute advice or a legal opinion. 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 this write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the Treelife 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.

Last Updated on: 8th December 2023, 04:49 pm


Disclaimer:

The content of this article is for information purpose only and does 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. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the Author / Treelife 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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