Avail The MSME Registration Benefits By Applying It Online
Posted: Jun 26, 2018
In today’s article, I will guide you through the benefits of MSME Registration in India. These micro small medium enterprises are just growing day by day and is an essential part of the growth in the economy of our country. Which is why the government favours and supports these micro small medium enterprises.
Let’s look at the laws and government involvement with MSME Registration
The Indian government has given out various subsidies as well as schemes and incentives for the promotion of the micro, small, medium enterprises through the MSMED act. Now to avail the benefits you must get MSME Registration done under the MSMED Act. This MSMED act provides with benefits that we’ll now discuss below.
The government will give preference to MSME registered enterprises through their policy of public procurement for the micro small medium enterprises order of 2012. It provides that all the central government ministries, their departments and public sectors with undertaking shall produce a minimum of 20% of their total value of goods annually from the micro small medium enterprises. This has become mandatory since the April 1st of 2015. As per this policy, the MSMEs that have their MSME Registration with the district industries centre or the Khadi Gramudyog like village industries commission are provided with certain benefits. The release date for the ease in MSME registration was February 18th 2016. The ministry now has started this "Udyog Aadhaar" memorandum which is an online registration system and all the MSME Registered shall be provided with the benefits under the procurement policy.
Another thing is the protection against the delay in the payment from the buyers, the MSMED act will provide you with the protection from unnecessarily delayed payments. This is specifically provided where the MSME is supplying the goods or is rendering any certain services to a certain buyer of their goods or services then that buyer is to make the payment on or before the agreed date. This period may exceed up to45 days of acceptance. In case, if the buyer fails to pay then he will be liable to pay a compound interest to the MSME owner that too with monthly interests on the amount from that date which falls after the due date. This is 3 times the bank rate which is notified by the reserve bank of India.
One more benefit is the time-bound resolution of disputes with their buyers. This is through the conciliation and the arbitration. Under the MSMED act, the government provides you with a benefit in case there’s any dispute regarding the non-payment of the dues by the buyer then the MSME could refer to the dispute MSME facilitation council. This council shall conduct conciliation in the matter and in case it doesn’t end up with any fruitful results, the dispute is directly terminated without any settlements.
When working with agencies to get MSME Registration?
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