Home Registrations MSME REGISTRATION Key Benefits of Micro, Small and Medium Enterprises (MSME) Registration

Key Benefits of Micro, Small and Medium Enterprises (MSME) Registration

November 25, 2020

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Key Benefits of Micro, Small and Medium Enterprises (MSME) Registration

Introduction

Micro Small and Medium Enterprises (MSME) is a branch of government of India which devises policies and schemes, govern and administer the MSME sector in India. MSME is the biggest contributor and backbone of the Indian economy and creates job employment to large number of people. Benefits of MSME are numerous, anyone can register their business and avail the benefits and schemes brought by the government from time to time. Whether a Sole Proprietorship or a partnership business, a private limited company or a limited liability partnership, all businesses can register themselves under MSME and can avail all the benefits and schemes brought by government of India from time to time.

Classification under MSME

The government of India has revised the MSME classification w.e.f 1^st July 2020, based on investment in plant and machinery and annual turnover of the business which is as follows-

Composite Criteria: Investment in Plant & Machinery/equipment and Annual Turnover
Classification	Micro	Small	Medium
Manufacturing Enterprises and Enterprises rendering Services	Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore	Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore	Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

Key Benefits of MSME Registration

50% fee concession/subsidy in Trademark Registration
Subsidy on Patent Registration
100% tax exemption for innovative startups (DPIIT Registration)
Collateral free loan approvals
Priority in sanctioning of loan
Very low rate of interest on loan
Secured Payments- No business entity can delay the payment due to MSME beyond 45 days, if the payment against business or commercial dealings due to MSME not made within 45 days than such person or entity shall pay compound interest rate three tome the RBI prescribed rate of interest to such MSME’s.
Subsidies in Electricity Bills
Preference in government tenders
Market Development Assistance Scheme for MSME
No renewal or annual compliance fee

Conclusion

These are various benefits which a MSME can avail, apart from these benefits a Sole Proprietor can directly register his new business under MSME and can start his business.

MSME platform is best suitable for new entrepreneurs who have zeal and passion to do something innovative at fast pace. It is a huge platform backed by the government support and direction for those who want to be job providers rather than job seekers.

No.	Type of Registration	Time Period	Required Documents
1.	MSME Registration	1-2 Working Days	MSME Form + PAN Card + Aadhar Card
2	MSME+GST Registration	8-10 Working Days	GST Form + PAN Card + Aadhar Card + Cancelled Cheque, Passport Size Photo of Proprietor + Address Proof of Business(Latest Electricity Bill) & Rent Agreement (if rented)