MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
The benefits that it provides :
1.Lower rates of interest
3.Power tariff subsidies
5.Capital investment subsidies.
Basic Information ( 1-2 Days)
Preparing and gathering the required documents ( 3-5 Days)
File the MSME application form & submit it to the MSME registrar(6 - 9 Days)
MSME appication is approved by the registrar( 10- 12 Days)
SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs usually get this done to utilise the advantages offered under it. The registration process is quite easy and simple. You can easily avail it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations.
Many state government prefers enterprises which are registered under MSME Act. Subsidy such as on power, taxes, and much more is offered by state governments. In most of the states, sales tax exemption is provided purchase preferences is given on goods produced. The enterprise may also relish excise exemption scheme and exemption from certain direct taxes in the initial years of your business.
While computing the value of Plant and Machinery, only original value is asked to be taken into account as per the MSME notification.
Credit rating is an estimate to figure out the capability of an enterprise to meet all the financial needs based on the previous year dealings. Although credit rating is not compulsive but it is in the interest of the MSME borrowers to get their credit rating done as it would help in credit pricing of the loans taken by them from banks.