Benefits under Udyam (MSMEs) Registration | Register your Business at msmereistration.org

 

MSME / Udyam Registration is a process for the Manufacturing and Business service sector who wants to avail benefits announced by the Ministry of MSMEs. MSME / Udyog Aadhar / Udyam registration is a mandatory task for small and medium businesses in India.

MSME are categories into two divisions -

Ø  Manufacturing Enterprises

Ø  Service Enterprises

As per the Government of India notification on Dated 26th July 2020, all existing small and medium scale enterprises must be converted to Udyam and every business and manufacturing unit registered previously under MSMS or Udyog Aadhar registration or SSI shall be treated as a valid MSME certificate upto 31st March 2021 only. Ministry of MSME launched Udyam Registration on July 1, 2020, around 20 lakh business units have registered and as of 1st February 2020 20,29,095 MSME' had registered for Udyam Certificate, that's mean 84.4 percent in the first quarter of FY 2021.

Enterprises which register themselves as an MSME can avail many key benefits include:

1.       Concession on Electricity bills

This concession is available to all the enterprises that’s have MSME registrar Certificate, by providing application to Electricity department along with registration certificate.

2.       Bank Loans : Collateral - free loans facilities

The Government of India provides collateral-free credit to all MSME business sectors. These schemes guarantee collateral-free loans to micro, small and medium Enterprises.

In Aid of MSME’s sector, addressing working capital needs and restarting Business impacted due to Covid-19 crisis. Finance Minister of India unveiled Rs. 20 lakh Crore comprehensive package know as Emergency Credit line Guarantee Scheme (ECLGS). This scheme is available upto 31^st march 2021 and the working capital term loan (WCTL) comes with a tenure of 48 months with a principal moratorium for the first 12 months.

3.       15% import subsidy on fully automatic machinery

Ministry of MSME’s operating scheme namely “credit-linked CGSTI Subsidy Schemes (CLCSS)” for technology up-gradation. CLCSS scheme was launched in Oct 2000 and revised from 29.9.2005.

Revised scheme aims to facilitate technology up-gradation of micro and small enterprise by providing a 15% capital subsidy (limited to maximum Rs. 15 lakhs) for the purchase of plant and machinery. Presently more than 1500 well established and improved technologies under 51 Sectors have been approved under the scheme.

4.       MSME Samadhan: Protection against payments (Delayed Payments)

At times, the buyers of services and products from the MSMEs or SSI’s tend to delay the payment. Ministry of MSMEs lend a helping hand to such enterprises by giving them right to collect interest on the payments that are being delayed by the buyer’s side. The settlement of such disputes must be done in minimum time through conciliation and arbitration.

In case, if any MSME registered the enterprise supplies any goods or services to a buyer then the buyer is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods and services from MSME or SCI registered business (if there is no mention of the date of payment).

If the buyer delays the payment for more than 45 days after accepting the products or services then the buyer has to pay the compound interest along with interests (monthly) on the amount that was agreed to be paid. The interest rate is three times the rate that is notified by the Reserve Bank of India.

5.       Reservation Policies to Manufacturing and Production sector

Reservation of items for exclusive manufacture in SSI sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this text-center sector

6.       ISO Certification charges reimbursement

To promote the standards and certifications received by MSMEs in a bid to enhance their performance across sectors, all registered micro and small industries can avail an exemption of all expenses incurred for obtaining ISO 9000, ISO 14001 and HACCP certifications.

7.       Helps In Getting Government Tenders

8.       Incubation Scheme For MSME

9.       Market Development Assistant Scheme For MSME

10.   Subsidy On Patent Registration

11.   Protection Against Delayed Payments

12.   100% Tax Exemption For Innovative Startups

13.   Prime Minister Employment Generation Programmed For MSME's

 

Note:- If you have any queries, talk to our expert. You can fill the MSME / Udyam Registration form @ https://www.msmeregistration.org  and our team will get in touch with you.