Benefits of MSME Registration
MSME or Micro, Small and Medium enterprises, classified depending on the annual turnover of any business. Previously, it is known as SSI registered entities. The entities which are registered under the MSME Development Act, 2006 of the Central Government can have MSME registration certificate. The Act was introduced to develop and to promote the businesses functioning at a small or medium scale.
Almost all types of business activities were eligible for registration under MSME before, but trading and other few business activities are now specifically excluded from the eligibility category. However the MSME registration is voluntary, entities prefer to obtain MSME registration online because of its numerous benefits announced by the government.
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Benefits of MSME Registration are as follows,
- Tax Benefits: By registering your business under MSME, you can get tax benefits scheme depending on your type of business such as granting immunity from certain direct taxes in the beginning years of your business.
- Easy Clearance on Payments: MSME registration helps your business to get easy clearance for any payments which are pending.
- 50% discount on trademark and Patent Fees: MSME registration offers you a reduction in the price of the trademark registration process and patent registration process. The entities which are registered under MSME may claim 50% discount on the Government fees with the submission of their MSME registration certificate.
- Credit Guarantee Scheme: Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) is a more supportive scheme for the small scale industries. It provides credit and income input from different sources to support small scale industries which are under the bad financial situation.
- Lesser Interest Rates For Bank Overdraft(OD): Banks and other money-related sources comprehend MSMEs and provide various exceptional schemes for them.
- Eligible for Mudra Loan Scheme: Business under MSME registration is eligible for the Mudra loan scheme.
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