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Avail The MSME Registration Benefits By Applying It Online

Author: Swarit Advisors
by Swarit Advisors
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?

When working with these professional agencies to get MSME Registration, make it clear about privacy policy. Make sure that to you they provide all the information about they will use your personal information in the process of creating an application for MSME Registration. It’s important your provider be transparent with you about what information they collect and how they do with it, with whom they intend to share with and who you are supposed to contact in case they misuse it. Make sure they comply with all the applicable data protection laws and the regulations in India.

But if you are looking forward for expert consultation then you may get in touch with us at Swarit Advisors we can help you with best solutions and guidance all the way in any of the legal online services. You can reach us anytime we are the leading online legal service providers.
About the Author

Write has expertise in writing on legal services like Gst, Trademark, Patent, Fssai, Msme, company registration etc.

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Author: Swarit Advisors

Swarit Advisors

India

Member since: Jun 04, 2018
Published articles: 8

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