Indian government has provided many benefits for small scale units or medium small and micro enterprises (MSME). In order to be eligible to get these benefits, any entity should register itself as MSME/SSI enterprise under MSMED Act. Following is a list of such advantages of obtaining SSI/MSME registration in India.
1. Collateral Free loans from banks:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the GOI to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, Government of India and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
2. A hefty 50% subsidy on Patent registration
Enterprises that have MSME Registration Certificate can avail 50% subsidy for patent registration by making application to respective ministry.
3. 1% exemption on interest rate on overdraft
Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on OD as mentioned in the scheme (this is bank dependent).
4. Eligible for Industrial Promotion subsidy
Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy as may be prescribed by the government in this behalf.
5. Protection against delayed payments
The Ministry of Micro, Small and Medium Enterprises gives protection to MSME Registered Business against delay in payments from Buyers and right of interest on delayed payment through conciliation and arbitration and settlement of dispute be done in minimum time. If any micro or small enterprise that has MSME registration, supplies any goods or services, then the buyer is required to make payment on or before the date agreed upon between the buyer and the micro or small enterprise. In case there is no payment date on the agreement, then the buyer is required to make payment within fifteen days of acceptance of goods or services. Further, in any case, a payment due to a micro or small enterprise cannot exceed forty-five days from the day of acceptance or the day of deemed acceptance. In case of failure by the buyer to make payment on time, the buyer is required to pay compound interest with monthly interest rests to the supplier on that amount from the agreed date of payment or fifteen days of acceptance of goods or service. The penal interest chargeable for delayed payment to a MSME enterprise is three times of the bank rate notified by the Reserve Bank of India.
6. Concession in electricity bills:
Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department along with MSME Registration Certificate.
7. Reimbursement of ISO Certification charges
Enterprises that have MSME Registration Certificate can claim reimbursement of ISO Certification expenses by making application to respective authority.
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my question is that how to apply for concession in electricity bill to torrent power ltd ahmedabad
I am registered to MSME today. I wish to know that if a bank is changing pre clouser / pre payment charges I have to pay. One more thing bank has dropped my limit on 5 October 2019 & cleared all my debts after closing the limit.
i regd msme ,&service providers, EVENT MANAGEMENT ,accept this service
What is the process to get Delayed payments from customer?
Can we escape from a private bank’s OD loan pre-closure charges by doing registration with MSME.
Pre-closure charges are written as 4% in OD loan sanction letter.
How to get EB concession?
We are Registered MSME Manucturer Exporter of Home Textiles and Garments.
Our proceeds for export about 1,15,000/-US$ is not paid by a company based at Gurgaon for over 60 days.
We want to present entire case for getting our money from this company.
Please advise whom we should meet in Mumbai, to present all relevant documentary evidences.
How can I apply for collateral free loan from bank if I am registered with MSME
Please guide me
Sir,
Our Company is an LLP company registered in 2018, can we apply for MSME registration now.
Thanks
Sharmila
Our MSME registered hospital is empaneled by NC Railway Hospital Jhansi, UP for cash less treatment of Rly employees and their families.
Inspite of agreed one month period of payment to us, the hospital fails to make payment even after many months.
Kindly guide as to how to proceed further to get payment on time as MSME unit.
My company is MSME registered, for bidding for tenders of government agencies and banks can we get exemption from tender fees and EMD. Any other benefits.
What is the authority for not
making the payment of dues within 45 days i.e. stipulate period as per MSME. How the legal action can be initiated against the client/party for delay payment. Request send us the complete details so that we may update with the ruling on the subject.
can i use benefits of MSME and 3 years taxfree benefits from start up India together?
Hi,
I got the UAM of MSME on 24.06.2019, will the penalty clause under MSME is applicable to my client against my past over-dues invoices?
Please revert soon, as I need to inform my client at the earliest possible.
Rgds
What are the GST benefits for MSME with turnover less than Rs. 25 Lacs.
Against a delayed payment MSME FC has given verdict in favour of the Supplier. The buyer is not ready to execute the verdict. What is the remedy available to the Supplier.
I want to know whether a MSME unit can participate in the govt tender claiming exemption where RFP has a stipulation of yearly turn over is Rs.20 crs.
How to and how much to charge against delayed payment from buyer under protection against delayed payment?
What benefits a MSME-II accredited company can avail while dealing with government authorities to submit Tenders ?
We are MSME registered company in Tamil Nadu used to participate central and state governments tenders across the country. Can we avail any exemption or relexation on Performance Bank Gurantee & Earnest Money Deposit?
Very educative article regarding MSME