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August 17, 2021

The 9 Benefits of MSME Registration for Your Business

The MSME Registration is an online process that makes obtaining professional assistance more easier. The 9 primary MSME advantages or benefits of obtaining MSME registration for your firm will be discussed below.

We reviewed the procedure and other specifics of acquiring MSME registration in our previous piece, as well as why we need micro, small, and medium businesses for our economy’s and growth’s sake. The top nine benefits of MSME registration that can be obtained with the award of MSME registration are listed in this article. These benefits include both monetary and non-monetary benefits related to commerce and entrepreneurial development.

Let’s take a look at the nine most important advantages of MSME registration. The benefits of MSME registration can greatly assist you in developing, improving, and building effective business models for your company.

  • Lending with Priority:

Priority lending is our first MSME perk. Whether you own a cutting-edge technology company or a masala packing company that employs rural women, your business will inevitably require credit and loans for long- and short-term finance. By virtue of Reserve Bank of India directives, banks have certain specified money that must be paid to MSME enterprises on a mandatory basis. Producing an MSME certificate allows you to apply for this financing more quickly and with fewer problems.

  • Lower interest rates, as well as better loan availability and access:
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Many business owners may find it difficult to obtain a loan to start their firm if collateral security (any property or cash pledged as a security against a loan) is not provided. With an MSME Registration, however, all banks are required to issue loans at lower interest rates than usual, and one may be able to take advantage of this benefit from many banking institutions for their financing needs.

  • Exemption from income taxes:

There are various MSME registration benefits that can save thousands of dollars in tax liability if this certificate is not obtained. Enterprises can profit from a presumptive foundation of taxation, which relieves them of the burden of keeping thorough books of accounts and undertaking audit procedures.

  • Credit-Linked Guarantee Program (CLGP):

Credit Guarantee Fund Trust for Micro and Small Firms (CGTMSE) was founded by the Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India (SIDBI) to implement the Credit Guarantee Fund Scheme for micro and small enterprises. Individual MSMEs can borrow up to 50 lakhs without putting up any collateral under this scheme.

  • Government-sponsored market support and export promotion:

The Indian government hosts a number of international exchange programmes, craft fairs, exhibitions, and trade-related events. Being classified as a micro, small, or medium firm grants you access to all of these channels for international trade cooperation and the development of new business relationships. Subsidies, tax exemptions, and technical assistance are all used by the government to encourage MSMEs to export goods and services.

  • Infrastructure development capital and other grants:
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Because MSMEs are a sector that creates jobs and supports entrepreneurial initiatives, the government also identifies training sectors for MSME and provides capital grants for infrastructure improvements and entrepreneurial development.

  • ISO Certification Reimbursement:

All registered micro and small industries can receive an exemption of all fees incurred for obtaining ISO 9000, ISO 14001, and HACCP certifications in order to promote the standards and certifications achieved by MSMEs in order to improve their performance across sectors.

  • Purchases made just for you and protection from the competition:

The Central Government follows a Price and Purchase Preference policy as part of the MSME Market Development Assistance Scheme. More than 358 goods are listed under it for purchase by the Central Government exclusively from medium, micro, and tiny entities.

  • Support for MSMEs in terms of technology and quality improvement:

The government reimburses project costs toward these goals for MSME sector units, as well as expenditures incurred for the implementation of clean technology, preparation of audit reports, and subsidies for licencing products according to national and international standards, in order to improve cost-effectiveness and promote clean energy use in manufacturing.

MSME Online Application: 

The MSME registration procedure offers a variety of monetary and non-monetary incentives and rewards. These MSME registration benefits are linked to the business’s entrepreneurial and trade development. If you wish to take advantage of the benefits of MSME registration for your micro, small, or medium firm, you should do so immediately.

Suggested Read: Udyam Registration Process

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