What is MSME registration and its benefits?
Posted: Jul 22, 2017
MSME stands for micro, small and medium enterprises which are the main source of economic growth of the country. It provides higher development and a major share of industrial production and exports. It plays very crucial role in the overall industrial development of the country. It is access to subsidies and schemes provided by the government.
MSME has great contribution to GDP growth. With its huge contribution, India has achieved 7.89 percent GDP growth. It also contributes to the employment to 60 million peoples at very low capital cost, the volume of labor in the MSME sector is higher than the large enterprises of the country. It is the real growth drivers of the economy. It can generate employment and wealth widely. Government of India provides subsidies, schemes and incentives to the MSMEs. It is called as small scale industries registration is a free registration, which gives numerous benefits to businesses. MSME is the backbone of the economy that promotes equitable development for all the sectors of the economy. Both manufacturing and services sector can obtain under the MSMED act. It provides a range of many benefits.
There are many agencies that help you to register with MSME. You can opt for a trusted service provider for MSME registration in Delhi that will help your small business to register with MSME. Now, I have some benefits of MSME registration.
Here are some benefits of MSME registration that helps your business in many ways.
- Right of interest on delayed payments
When the buyer fails to make the payments, then he/she will be liable to pay compound interest with monthly rests with the supplier at three times according to the bank rate.
- Protection against the delay in payments from buyers
It provides protection to the micro and small enterprises for delayed payments. If micro and small enterprises provide any goods and services to the buyers, then the buyer is required to make the payments before the delivery of the goods that mean they have to make advance payments.
- Benefits from central government
It offers some benefits such as credit guarantee scheme, provide loan up to 5 lakhs for micro enterprises, reducing one time guarantee, for loan and enhance the optimal eligibility for a loan. These are the schemes that are provided by the central government to the MSME enterprises.
- Benefits from banks
Banks, and all other financial institutions recognize MSME and provide a special scheme to them that includes priority sector lending, sanctioned loan is high and lower interest rate.
So, these are the benefits of MSME registration that helps you to start a new business and register with MSME or SSI. The MSME and sales tax registration provider is Tax home that is one of the best registration companies, which helps you to start a new business and provide facilities that are required to start a new business. Please feel free to approach them and get the best business solutions to start a new and perfect business.