Micro, Small and Medium Enterprises procures high benefits by registering themselves in MSME. In general, msme registration just takes snap of a finger but they must know, what category their firm falls under. Enterprises are generally classified into two major types such as service and manufacturing industries while registering.
Micro Small Medium Enterprises:
- Manufacturing industry invested less than Rs. 25 lakh in equipment and service industry invested less than Rs.10 lakh in plant and machinery comes under Micro enterprises.
- When manufacturing industry invested less than Rs.5Crore and Service industry invested less than Rs.2 crore in plant and machinery comes under Small enterprises.
- When the manufacturing enterprises invested between Rs. 5-10 crore, then it falls under medium enterprises and the service industry invested less between Rs. 2-5 crore, then it is medium enterprises.
Both online and offline methods can be employed to register in MSME and the necessary documents are
- Aadhaar number,
- Partnership Deed/ MoA and AoA
- Copies of Sale Bill and Purchase Bill
- Bank account details etc.
To your surprise, there is no fees required to register. Filing the necessary details with precision can paves a way to successfully register in MSME.
Once you get the self certified certificate, you are eligible for the following benefits offered by the Government of India.
- Bank Loans
No, not just bank loans but collateral free loans. Both new and old enterprise are eligible for this bank loan. The loans offered by the government assist these firms to develop their standard and make more profit. Who says no to collateral free loans? Make use of it wisely.
- Subsidy for Patent Registration:
50% of subsidy is given to the enterprises who posses Certificate of Registration from Micro Small and Medium Enterprises.
- Reimbursement on the Charges of ISO Certificate:
Procuring ISO certificate for your business will always hikes the standard of the business. Those who have registered their enterprise in MSME are eligible for some major benefits such as claiming a reimbursement from the amount spent for ISO registration.
- Exemption from Overdraft Interest:
Enterprise registered in MSME procures a payback of 1% on their over draft. But this profit differs from bank to bank; you will know more about the benefits by inquiring the bank.
- Lesser Interest for bank loans:
Bank loans are quite cheaper up to 1-1.5%when you have the Certificate of Registration in MSME. Lower interest assist you to save few pennies in your business expenses.
- Higher probability to get Government tenders:
Many tenders rendered by Government are open to the enterprise which owns a Certificate of Registration in MSME. Since a very few enterprises owns MSME’s certificate of registration, the chances are high likely to get the tender on your hand.
Hope exploring this article enlightens you the benefits of owning a Certificate of Registration in Micro Small Medium Enterprises.