Previously known SSI registered entities are now known and registered as MSME, i.e.; Micro, Small and Medium Enterprises. MSME stands for Micro, Small and Medium enterprises, categorized based on the annual revenue in business. These entities possess MSME registration certificate, registered with MSME Department of the Central Government under MSME Development Act, 2006. The Act was enacted for the promotion and growth of the businesses operating at small or medium scale.
MSME Stands for Micro, Small and Medium Enterprises it facilitates development & promotion of enterprises through various benefits & schemes.
HOW MSME REGISTRATION HELPS MY BUSINESS?
- Low-Interest rate – All banks and other financial institutions recognize MSMEs and have created special schemes for them. MSME’s get the privilege of lower interest rate on business loans.
- Relaxation in Trademark Government Fees – Government has given relaxation in government fees of the trademark to MSME registered entities. The fee shall be â‚¹4500/- for small enterprises despite trademark fee for enterprises other than MSME’s is â‚¹9000/-
- Credit Support Schemes – Government of India runs several schemes to provide financial assistance to MSME for their business.
- Tender Eligibility – There is a certain quota reserved for MSME Registered Entity in government tender allotment.
- No delayed payment – If an MSME entity has made any sale then the buyer has to pay to the MSME’s entity within the 45 days from the date of delivery of product or services.
- Easy loan in 59 minutes – Recently, the government has announced that all MSMEs having MSME Registration and GST registration will be granted easy up to ₹ 5 crores within 59 minutes. This scheme has been discussed below in detail.