What are the benefits of MSME Registration?

MSMEs are quite essential for the economic growth of our country and they also promote equitable development for everyone. MSME is also known as Micro, Small, and Medium Enterprises. They are very important for our country’s development. The government of India takes various steps in order to promote MSMEs through the MSME Act. There are a lot of benefits that are availed to MSMEs by the government if they perform the MSME Registration through the Udyam Portal.

Advantages of MSME Registration via Udyam Portal

The government of India provides a lot of benefits to the MSMEs that have already performed MSME registration via Udyam Registration.  There are a lot of features of MSME Registration. The MSME Registration through Udyam Portal can be acquired for an enterprise by anyone. MSME Registration can also be performed by visiting the official portal of Udyam. Following are some of the features of Udyam Registration:

• The procedure of MSME registration via Udyam is totally digitised. The applicant will not have to upload any documents.
• The process of MSME Registration via Udyam Portal is free.
• Once the registration is completed, the applicant will be issued an “Udyam registration Certificate.” A dynamic QR code will be present in the Certificate through which one can access the details of the enterprise.
• If someone misrepresents the Udyam Registration , then he will be penalised under Section 27 of the MSME Act.
• The Udyam portal is in integration with the GSTIN System and the Income Tax system which provides all the data related to investments and turnover to the Udyam Portal automatically.
• Exports are not included in the calculation of turnover.

In order to perform the MSME registration, the applicant must possess his Aadhar Card and the PAN and GST Numbers.

Advantages of Udyam Registration

The advantages of Udyam MSME Registration are listed below:

• The registration is permanent in nature.
• It provides the enterprise a Primary Identification Number.
• It is based on self-declaration and is totally paperless.
• It is a permanent registration. Therefore, the registration does not need to be renewed.
• In a single registration, the activities of either manufacturing or services or both can be specified.
• The registration of an enterprise can also be done on Government e-portal (GeM) along with the Udyam Registration.
• An MSME registration also provides an opportunity to the MSMEs to avail the benefits of some of the schemes of the Ministry of MSMEs. These are listed below:
  • Credit Guarantee Scheme
  • Public Procurement Policy
  • Protection for payments that are delayed
  • Special Treatment in case of Government Tenders
  • Priority sector lending from banks can also be accessed.

Benefits of PRiority Sector Lending

There following listed benefits are provided to MSMEs in case of Priority Sector Lending:

• The guidelines for Priority Sector Lending are issued by the Reserve Bank of India.
• The different categories under the Priority Sector Lending are as follows:
  • Agriculture
  • MSMEs (Micro, Small, and Medium Enterprises)
  • Export Credit
  • Education
  • Housing
  • Social Infrastructure
  • Renewable Energy
• Loans are provided to all the MSMEs only when the concerned MSME qualifies all the guidelines set by the Reserve Bank of India.

Advantages provided to a Udyam Registered Enterprise

The advantages that are provided to an enterprise that has already perform MSME Registration via Udyam Portal Enterprise are listed below:

• Benefits from Banks: Ever since the launch of Udyam Registration, all the banks and financial institutions are giving priority to MSMEs and are devising special plans for them. The MSMEs are easily provided a business loan at quite a low rate of interest which is lower than the rate of interest that is levied on a regular business loan.
• TAX Benefits: Excise Exemption Scheme benefits are provided to business owners according to the type of business or industry they have. In the starting years of their business, they may also get a direct tax exemption.
• Electricity Bill Benefits: Small business owners who have registered themselves on the Udyam Portal are allowed to have some concessions on the bill of electricity and can save their money.
• License Approval: If a company has registered on the Udyam Portal can easily apply and get approvals for different types of licences and registrations.
• Applying for Government Tenders: If an SME is registered under the Udyam Portal, then it is allowed to participate in government tenders and can easily get an exemption.
• Overdraft Interest: All MSMEs are allowed to get a benefit on Overdraft and a 1% exemption on the rate of interest under the Credit Guarantee Trust Fund Scheme. This helps in reducing the loan EMI.
• Benefits of State Government: MSMEs will be able to get subsidies on electricity, taxes and entry to the business sector and buying preference and rebate in sales tax.
• Benefits from Central Government: There are a lot of schemes introduced by the Central Government that provide benefits to those who have performed MSME Registration under the Udyam Portal.
• Subsidy Benefits: The registered mSMEs will be allowed to get a subsidy from the NSIC and ratings of credit. They are also eligible to get the Industrial Promotion Subsidy(IPS).
• WorldWide Business Opportunities: The registered MSMEs can also take part in international trade shows and international fairs. This will allow them to display their services and products to a global audience worldwide.