Small scale businesses play a vital role in improving the economy of any country.
To encourage new and existing business, the
government of India has launched many schemes that help small and medium scale businesses to sustain
and grow.
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MSME, i.e. Micro, Small and Medium Enterprises, is considered as the
backbone of the Indian Economy.
The MSME sector encompasses a massive number of small scale industries
under its belt, making it one of the prominent GDP contributors of India.
MSME is a government-backed initiative that seeks to boost the growth
of small scale industries operating in the organized and unorganized sectors.
Small scale businesses play a vital role in improving the economy of
any country.
To encourage new and existing business, the government of India has
launched many schemes to help small and medium scale businesses to sustain and grow.
To avail all these beneficial schemes, you need to get your Udyam
registration done. Udyam registration is also known as Udyog Aadhaar or SSI registration.
One Call Tax can complete the process in just a few steps.
The following are the major benefits given to
registered MSMEs under the Micro, Small & Medium Enterprises Development (MSMED) Act:
You can get collateral-free loans from banks under the credit
guarantee fund scheme for micro and small enterprises (CGS).
Some items have been earmarked to be manufactured only by
small scale enterprises.
Once you get the MSME certificate for your microenterprise, it
gets much easier to get licenses, registrations, and approvals for the same. Being able
to show your MSME certificate while making these applications will speed up the process.
You get special consideration for participating in
international trade fairs, exhibitions, and buyer-seller meets. You can also hold
international seminars and conferences which are in the interest of MSME sector.
When you have MSME registration, you get many things done at a
subsidised price: barcode registration, NSIC performance and credit ratings, industrial
promotion subsidy (IPS), ISO certification, electricity bill, and patent registration
can be done easily.
The interest rate charged by banks for MSME registered
enterprises is lower than the normal interest rate.
To promote technological growth among the micro industries
Credit Linked Capital Subsidy Scheme (CLCSS) scheme was introduced that provides 15%
capital subsidy up to 15 lakhs for the purchase of plant and machinery.
While applying for a government tender, the ministry of micro,
small and medium enterprises gives the following benefits to a microenterprise:
Tender sets can be issued free of
cost
They are exempted from paying
earnest money
Security deposit is waived up to a
certain monetary limit.
There are many other benefits under the Act and benefits are
introduced through annual budgets as well.
This is apt for entities which are yet to begin
functioning. With provisional registration the MSME can:
Obtain facilities for accommodation, land, etc.
Obtain important approvals and NOCs.
Obtain clearances from regulatory bodies such as Pollution Control Board and Labour
Regulations.
Obtain term loans and working capital from financial institutions and banks under
priority sector lending.
A PRC (provisional registration certificate) is allotted to new enterprises without any
field enquiry and is valid for 5 years.
It is given to industrial units that are already functioning. All the benefits available to MSMEs can be availed by them. The following conditions have to be met for getting a permanent registration:
The unit has obtained statutory and administrative clearances as required.
The unit does not violate any regulation or restriction.
The value of plant and machinery in the unit does not exceed the prescribed limits.
There should be proof that the enterprise is not owned, a subsidiary of or controlled by another industry.
Aadhaar card
A bank passbook with a picture
Election ID card
Passport
PAN Card
A driving permit
A government-issued ID card for employees (if any)
Certificate of caste (for SC, ST, and OBC category)
Owner's name and Aadhar number for the business
Name of the business
Information about the initial registration procedure for the business
Documentation confirming the kind of the business
Documents pertaining to the bank account information and mailing address.
Code for National Industrial Classification.
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