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      MSME REGISTRATION WITH ITS BENEFITS

      Amit by Amit
      July 25, 2022
      in Bussiness, Finance
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      MSME REGISTRATION WITH ITS BENEFITS
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      Before you can comprehend what MSME/Udyam Registration is, you must first understand that MSME is the acronym for Micro Small and Medium Enterprise. The backbone of the economy is Micro, Small, and Medium Enterprises (MSME). MSME is the top executive body in charge of implementing and enforcing rules, regulations, and laws that affect Micro, Small, and Medium Enterprises. MSME Registration is available for both manufacturing and service industries.

      MSME Registration, on the other hand, is a quick and easy way to register MSMEs and SMEs. It benefits businesses in a variety of ways, including financial assistance and government subsidies in excess of what they need. It aids in the expansion of the company and the improvement of infrastructure.

      What are the Benefits of MSME Registration?

      Micro, Small, and Medium Enterprises can profit from MSME registration in a number of ways. Here are a few of them: –

      Aids In Obtaining Tenders From The Government:

      MSME registration makes it simpler to acquire government tenders since the Udyam Registration Portal is connected with the Government e-Marketplace and many other State Government websites that give quick access to their marketplaces and e-tenders.

      Exemptions from Direct Taxation:

      As mentioned in the program by the government, enterprises that encompass MSME Registration can benefit from Direct Tax Exemption in the early year of business, based on business activities.

      Bank Loans with No Collateral:

      The Indian government has made collateral-free lending available to all small and micro-businesses. Micro and small companies can receive money through this initiative. Both existing and new businesses are eligible to participate in this plan.

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      The Government of India created the ‘Financing Guarantee Fund Scheme’ (CGS) for Micro and Small Enterprises to make collateral-free credit available to the micro and small business sector. Existing and new businesses are both eligible for coverage under this plan.

      Interest Rate Exemption For Overdrafts:

      According to a system that differs from bank to bank, enterprises or businesses registered under MSME might receive a 1% discount on their overdraft.

      Claim ISO Certification Expenses:

      The registered MSME can request reimbursement for the operating costs incurred in obtaining ISO certification recognition.

      Electricity Bills are Reduced:

      This concession is available to any businesses having an MSME Registration Certificate that submit an application to the Department of Electricity together with their MSME Registration Certificate.

      Patent Registration Subsidy:

      Enterprises that have received a certificate of registration from MSME are eligible for a generous 50% subsidy. This subsidy for patent registration can be acquired by submitting an application to the appropriate authorities.

      Eligibility for the Industrial Promotion Subsidy:

      Businesses that are registered under MSME are also eligible for a government-recommended subsidy for industrial promotion.

      Protection Against Payment Delays:

      Buyers of MSME/SSI services and goods have a tendency to defer payments at times. The Ministry of MSME assists such businesses by granting them the authority to collect interest on payments that have been postponed or delayed by the buyer. Reconciliation and adjudication must be used to resolve such conflicts in the shortest amount of time possible.

      International Trade Fairs: A Special Consideration:

      Financial assistance is provided to industries/enterprises associations and registered societies/trusts, State/Central Government organizations, and organizations associated with MSME on a reimbursement basis under the International Cooperation Scheme for delegation of MSME business to other countries. It is for the purpose of identifying new areas for MSMEs, participation by Indian MSMEs in trade fairs, international exhibits, buyer-seller meetings, and hosting international conferences and seminars on MSME topics.

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      Stamp Duty and Registration Fees Are Waived:

      In India, all new industrial units and expansions with MSME registration would be exempt from paying Stamp Duty and Registration fees.

      Subsidy for Bar Code Registration:

      All MSME-registered businesses are eligible for a Bar Code Registration incentive, as stated in the plan.

      NSIC Performance And Credit Rating Subsidy:

      MSME-registered businesses are eligible for NSIC Performance and Credit Rating Subsidies, as indicated in the plan.

      Industrial Promotion Subsidy Eligibility:

      According to the plan, all enterprises that are registered under MSME Registration are eligible for the Industrial Promotion Subsidy (IPS).

      Tender Submissions:

      To encourage small company participation in India, the government issues several bids that are solely available to MSMEs.

      Reservation Policy’s Advantages:

      It assures greater consumer goods production in small businesses as well as improved job possibilities as a result of the establishment of small businesses.

      Purchase of plant and machinery is eligible for a 15% CLCSS subsidy:

      CLCSS (Credit Linked CGSTI Subsidy Scheme) is a program operated by the Ministry of MSME to assist MSEs in upgrading their technology.

      The updated plan seeks to help MSEs upgrade their technology by providing a 15% capital subsidy (capped at Rs.15 lakhs) for the acquisition of Plant & Machinery.

      Suggested Read- udyam registration portal

      Policies Regarding Reservations in the Manufacturing/Production Sector:

      One of the key policy initiatives for supporting this text-center industry has been the reservation of goods for exclusive manufacturing in the SSI sector, as allowed for by the Industries (Development and Regulation) Act, 1951.

      Tags: msme registration benefitsudyam registrationudyam registration portal
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