Home Agreements Advantages of MSME/SSI REGISTRATION

Advantages of MSME/SSI REGISTRATION

June 18, 2019

2071

Firstly MSME means micro, small and medium Enterprise. The Government of India has made the law in respect of the Small Enterprises and Medium Industries.

To support and promote, the government of India have launched various Schemes, Programs and Subsidies. MSME plays a crucial role in developing our Economy.

The MSME is more labour intensive entity as compared to other Entities and other Corporation. Thats why government has launched various schemes for upliftment of labours as well as for the development in the economy

It satisfies the demand of domestic customers/ and/ or needy ones.

BENEFITS OF THE MSME REGISTRATION

Benefits from the central government – the central government launches many schemes like credit guarantees schemes.
Tax benefits – there are many schemes like excise exemption scheme and exemption from various direct taxes in the starting years of the business.
Benefits from the banks – the banks have made the special type of scheme. In this bank will provide loan at concessional rate/ and / or at low interest rates.
Benefits from state government – Most states offer those who’ve registered under the MSMED Act subsidies on power, taxes and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preference on goods produced.

The Credit Guarantee scheme, introduced to support MSME, comes with modifications to make it more beneficial for small traders:

The salient features of the scheme include:

Enhancing the optimal eligibility loan from Rs. 25 lakh to Rs. 50 lakh.
Reducing the one-time guarantee for loans availed of by the MSME in North-Eastern region of India from 1.5% to 0.75%.
Increasing the extent of guarantee cover from 75% to 80% for:
Women operated Medium and small scale enterprises.
Micro enterprises, for loans up to 5 lakhs.
Loans obtained in North Eastern region of the country.
Reducing the one-time guarantee fee for all loans availed in North Eastern India from 1.5% to 0.75%.