MSME Benefits- What are the advantages of MSME registration

Posted by Juhi Kumari on June 30th, 2021

• Loans from a Bank

MSMEs have an easy time obtaining financing. Once an MSME has been registered with the appropriate authorities, this will be seamless.

• Exemptions from Taxes

MSMEs are eligible for a variety of tax exemptions and rebates offered by the government.

Also Read: Print Udyog Adhaar Certificate

• Alternative Minimum Tax

MSMEs that are registered are eligible to carry forward the minimum alternative tax for a period of 15 years. This benefit is usually only valid for ten years.

• Tenders that are Secure

Government contracts and tenders would be available to registered MSMEs. It is easier to get a tender for a registered MSME because they are more credible. Aside from that, the competent body would notify registered MSMEs about a tender.

• Credit Ease is a term used to describe how easy it is to obtain credit

It is easier to obtain a new type of credit from financial institutions. As a result, MSME that are registered are eligible for this reward. As a result, MSME registration is essential in order to obtain loans more quickly.

• Benefits from the government have been enhanced

When it comes to government facilities, registered MSMEs have additional advantages. When opposed to an unregistered MSME, not only the government but also the general public would have more confidence and faith in a registered MSME.

• Prospects for Development

MSME registration opens up more possibilities for diversification. A person who contemplates MSME registration will be given additional credit. In addition, registered MSMEs will be recognised at international business conventions and export-oriented trade shows.

• Loans with Collateral

MSMEs that are registered will be eligible for no-collateral loans. MSMEs are usually given loans of less than Rs 10 lakhs. Any loan with a value less than the stated amount would not require any type of security from the bank.

• ISO Accreditation

An individual can benefit from the ISO certification process by registering as an MSME. Aside from that, all MSMEs that register in accordance with the requirements will receive some type of reimbursement for ISO certification.

As a result, if a person wants the aforesaid benefits, he or she must go through the MSME registration process.

Which entities are eligible to participate in the MSME Registration Process?

The MSME registration process is open to the following entities:

• Sole Proprietor

Any business in which a person conducts and manages affairs can apply for MSME registration.

• Partnerships

A partnership is a formation of a business entity where there is an agreement between two or more persons to share the profits of the business. Partnership businesses can apply for the MSME registration process.

• Company of Producers

A producer firm is one that engages in operations relating to the production of agricultural products. Because agricultural activities are one of the primary activities of MSMEs, this form can be used to register for the above.

• Limited Liability Corporation (LLC)

An MSME can be run by any company that is registered under the Companies Act, 2013 or the earlier company statute, 1956.

• A One Person Business

MSME Registration can be pursued by an entity that is registered as a one-person corporation.

MSME Registration Online Eligibility Criteria

• Criteria for Turnover

The entity wishing to register as an MSME must achieve the above-mentioned turnover requirements.

• The MSMED Act requires compliance

Aside from that, the investor or owner must invest more than Rs. 20 crore and have a turnover of less than Rs. 100 crore. This requirement of a turnover of less than 100 crores is based on a May 2020 amendment. This turnover must be in plant and machinery for either the manufacturing or service industries.