MSME stands for Micro, small & medium enterprises. MSME’s turns out to be a game changer for Indian economy to outshine and become the 5th largest economy worldwide. For a mixed economy like India, MSME’s acts as a backbone for the economy because they gives access to local people engagement hence increasing the employment opportunities, increases standard of living. Since our economy is still in the developing phase and the government is search for better business avenues for the Indian economy is providing subsidies, easy credit facilities to the MSME sector.
Who should register for MSME?
Any manufacturing or service provider, which fulfills the below mentioned conditions can apply for MSME registration. The updated & new guideline which is scheduled to be in force from 1st July, 2020 to get a MSME registration in India is:
To increase the ambit of MSME registration in India and revive the MSME sector from COVID-19 and the subsequent impact of the nationwide lockdown on the Indian economy, a new set of guidelines for MSME registration are issued by the government of India.
What are the benefits associated with MSME registration in India?
Getting a tag of MSME brings in a lot of benefits for the organization. We will briefly discuss some of the important advantages of MSME registration in India.
1.) Easy availability of credit
Since the government policies and the economy is in favour of uplifting the MSME sector in India therefore it become quite easy for a new MSME registration to get credit facility from a public sector bank (PSB).
2.) Government policies
There are various government policies to support your business if you have a MSME registration in India.
- Micro unit development & refinance agency ltd. [MUDRA]
- Atmanirbhar Abhiyan
- Scheme of Fund for Up-gradation and Regeneration of Traditional Industries [SFURTI].
- National Manufacturing policy [NMP]
- Prime Ministers Employment generation programme [PMEGP]
- Credit Guarantee Trust Fund for Micro & Small Enterprises [CGTMSE]
- Interest Subsidy scheme
3.) Easy approval & MSME registration process
Considering the potential of the MSME sector and its importance in the growth of Indian economy, the government of India has made the process of MSME registration easy and convenient. With the help of online CA services one can get their MSME registration in minimal time.
4.) Specific grievance monitoring system for MSME
With the help of champions control room which is working with the ministry & various other institutes of MSME will be a single window system for facilitating all the grievance of MSME registration, application and other ministerial approval.
Minimum alternate tax (MAT), Incubation facility for potential MSME, Credit linked capital subsidy scheme, Zero defect zero effect for export oriented MSME’s are some of the benefits which help an MSME to grow in the Indian business environment.