6 Important Benefits of MSME Registration, You Must Know!

Below are 6 important benefits (incentives) available for MSME Registered entities which you must know.

1. Recoveries from Clients (Delayed Payment Monitoring System):

Your clients/customers are bound to pay you within 45 days if you are registered under MSME. 7000+ cases have been Disposed or Mutually Settled by Government under this scheme involving an amount of over Rs.1,100 Crore. visit https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx for further details.

You must be registered under MSME at the time of raising such invoice, MSME registration number must be mentioned on the invoice, are a couple of pre-requisites among others to avail this protection. Process is online. As per the Companies Act, private and public companies have to specifically report the details of their MSME registered vendors and whether they paid these vendors within the prescribed period.

2. Collateral Free Loans upto Rs. 2 Crores (Rs.20 Mn):

MSEs can avail loans from financial institutions without collaterals/third party guarantees. As per the government website, a whooping 4.36 Lac number of guarantees amounting to over Rs.30,000 crores are issued in 2019 alone, under this scheme. Both “New” as well as “Existing” MSEs from any sector (Services / Manufacturing) are eligible for this scheme.

So what are you waiting for?  Visit government website https://www.cgtmse.in/FAQs.aspx for details of this scheme.

3. Concession in electricity bill:

There are concessions on Electricity bills for MSME registered entities. Electricity Duty is exempt from the electricity bills of the MSME registered entities. So enjoy the bill reduction merely by registering as MSME and following a quick small process. 

4. 1% Interest Rate Reduction on Overdrafts:

If you are MSME registered company, you are eligible for 1% reduction in Interest rate on Overdrafts as per the RBI circular RBI/FIDD/2016-17/37 Master Direction FIDD.MSME & NFS.3/06.02.31/2016-17.

If you have not availed the same till date, go to your bank and get this done.

5. ISO Certification Reimbursement:

Government of India reimburses the expenses incurred on getting ISO Certification for MSME registered units. Visit https://www.startupindia.gov.in/content/sih/en/government-schemes/reimbursement_iso_standards.html for further Details. (there are ceilings applicable on maximum amount reimbursable 75% upto Rs. 75,000)

6. Reimbursement of expenses on Participating Trade Fair Events:

MSMEs are eligible to get a reimbursement from the Government for Participating in various Domestic and International Trade Fairs. (as per Guidelines issued on 20 Nov 2019 by Development Commissioner, MSMED, Government of India). Reimbursements include rents, registration fees, travel and other costs for participating in such events.  

Some other benefits:

There are many other benefits proposed by the government for MSMEs.  

Rs. 50,000 Crore Equity Infusion: 

Government is planning to infuse equity in MSMEs. A fund is set aside for the same by the Government of India. Detailed guidelines on the same are expected soon.

Technology Up-gradation Scheme: 

Government gives a Subsidy of certain percentage of Capital investments in MSMEs. Currently Under Hold, revised scheme will be issued soon.. http://www.dcmsme.gov.in/schemes/Credit_link_Scheme.htm

Patent (IPR) Scheme: 

Subsidy is available for getting the IP Registration for MSME. https://www.startupindia.gov.in/content/sih/en/government-schemes/international-patent-protection-sip-eit.html

How to Obtain MSME Registration?

This is a one time registration. MSME Registration can be obtained online on your own OR you can take help of consultants for getting your entity registered under MSME. The cost of consultants generally ranges between Rs.5,000/- to Rs.10,000/- in India.  For further details and help contact http://datapalmtech.com/contact/

Are you eligible to be registered as MSME?

Any entity Proprietorship, Partnership, LLP, Private Co., Public Co., etc in the busines of providing Services or Manufacturing activity, meeting the below limits are eligible to be registered as MSME:

Particulars	Micro	Small	Medium
Investment in Plant and Machinery	upto Rs. 1 Crore (10 Mn)	upto Rs. 10 Cr (100 Mn)	upto Rs. 50 Cr (5k Mn)
Turnover	upto Rs 5 Cr (50 Mn)	upto Rs. 50 Cr (50 Mn)	upto Rs. 250 Cr (2.5k Mn)

Can I get help to be registered as MSME?

Yes. Please write on [email protected] or call +91 90216 48544

DISCLAIMER:

The information contained herein is generic in nature and is meant for awareness purposes only. Nothing here is to be construed as an advice . Readers are advised to exercise discretion and should seek independent professional advice prior to making any decision in relation to any product. The Author is not liable for any decision arising out of the use of this information.