MSME stands for Micro, Small and Medium Enterprises and any enterprise that falls under any of these three categories are further categorized into two types of industries- manufacturing industry and service industry. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for lower rates of interest, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment subsidies and other support.Legaltree can help your business obtain MSME Registration under the MSMED Act and avail a host of benefits.
The Govt. of India and SIDBI has launched a Credit Guarantee Scheme (CGSME) to make available collateral-free credit to SMEs.
Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on over draft (OD).
Maximum period for payment for purchases from MSME shall not exceed 45 days, in case of delay, the buyer is liable to pay interest to the SME supplier, at 3 times of the bank rate.
Enterprises that have MSME Certificate can avail 50% subsidy for patent & trademark registration.
The Government of India gives special preference in buying from Micro and Small businesses through Govt. tenders.
Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department.
Enterprises undergoing a dispute with regard to payments may refer the dispute to the MSME Facilitation Council for conciliation & arbitration.
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