WHY SHOULD YOU PREFER TO GO FOR MSME REGISTRATION?
MSMEs allow a country's citizens to risk themselves and, in turn, contribute to society by creating new jobs and diversifying a region's gross domestic product (GDP). They also gradually revived the artisan class in remote parts of India by providing jobs and access to loans and other services to this class. Moreover, they constantly support technological transformation, develop infrastructure and promote the modernization of the country and society at large.
It is because of this fact that they are so important to our economic development and why they have been constantly in the headlines since the pandemic hit in early 2020. However, when the pandemic hit subsided and the economy gradually came to life. Benefits of msme registration are citied below:
- Bank loan (no mortgage): Government of India has provided unsecured credit to all areas of micro and small businesses. This initiative secures funding for micro and small businesses in this sector. Under this program, both old and new companies are eligible for benefits.
Issuance of patent registration: Under current law, MSMEs registered with the Ministry of MSMEs are eligible for a subsidy of 50% of their patent registration fee. This encourages small businesses and companies to continue to innovate and work on new projects and technologies. The grant can be used by submitting an application to the respective ministries.
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Overdraft interest free: Companies and companies registered as MSMEs can benefit from 1% overdraft under a scheme that varies from bank to bank. This helps keep small businesses safe during times of market uncertainty.
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Eligible for industrial promotion funding: Businesses that are registered as MSMEs are eligible for government-provided industrial promotion grants.
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Protection against payments (late payments): MSMEs constantly face the risk of late payments, which disrupts their entire business. To protect registered businesses, the Supreme Court requires any purchaser of goods or services from registered MSMEs to pay on or before the agreed payment date or within 15 days of from the date they accepted the goods or services. . If the buyer is more than 45 days late in payment from the date of receipt of the goods or services, the buyer must pay interest on the agreed amount.
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Less electricity bill: All companies with MSME registration certificates receive a discount on their electricity bills. This allows businesses to ramp up production and take more orders without having to worry about capital expenditures for expenses like electricity and maintenance. Micro, small and medium enterprises can benefit from franchising by providing an application to the electricity department with a certificate of registration.
Any registered micro, small and medium-sized business is eligible for reimbursement of costs incurred to achieve ISO certification. This motivates entrepreneurs to obtain ISO certifications for their respective companies, helping them to do business abroad for high quality exports.
Once should also know the importance of working capital that it is used to finance operations and meet short-term obligations. If a business has enough working capital, it can continue to pay employees and suppliers and meet other obligations, such as paying interest and taxes, even if it has cash flow problems. .