What are the benefits of registering a company under MSME?
There are multiple advantages of registering the company under MSME some of the common benefits are mentioned below:
Protection against delayed payment: The ministry provides that the buyer has to pay the billed amount within 15 days after receiving the product or service in case the payment is not decided. In addition, the owner of MSME can charge interest on the delayed payment if the payment is delayed by 45 days.
Rebate in Tax: The companies registered under MSME are having multiple benefits in terms of payment. Additionally, the companies are excluded from the audit and inspection.
Discount in patent filing: The ministry of MSME gives a 50% of instant discount at the time of patent filing to promote small-scale industries.
Easy Bank loans are collateral-free and have less interest rate: The companies registered under MSME get collateral-free loans from the bank and also the interest rate on bank loans is very less as compared to other companies.
Worldwide business exposure: The ministry provides every opportunity for the MSME enterprises to connect globally and makes space in the international market. The exhibition, seminars, and all international events can be accessed by the companies registered under the Ministry of MSME.
Discounts on Electricity Bills: The companies registered under MSME are eligible to avail reimbursement for the electricity bill.
No fees for ISO certificate: If the company submits the application for an ISO certificate with the registration certificate of MSME, the certificate will be issued free of cost after fulfilling all the essential conditions.
Reimbursement for technology upgradation: The cost incurred on the installation of clean technology and the audit cost and other expenses will be reimbursed by the Government in order to keep the companies updated on the latest technology.
There are some basic questions that create confusion in the mind of people. Here is answer to all their queries.
Whether the start-up companies are eligible for registration under MSME?
Yes, start-up companies can register themselves under MSME using the UAM (Udyog Aadhar Memorandum) portal.
Whether Pharma Companies are eligible for registration under MSME?
Yes, Pharma companies can register themselves under MSME by following the online registration procedure.
What are the documents that are required for registration purposes?
For registering under MSME one must have a valid Aadhar Card, Pan Card, and GST details are the basic document requirement.
Is it compulsory to obtain GST for registration under MSME?
Yes, GST registration is mandatory for the registration of companies under MSME.
How much cost is required for registering under MSME?
The registration process under MSME is free of cost.
What is the procedure to register under MSME?
The entire procedure of registration is online. One can register himself by submitting basic information and documents on the online portal.
In order to promote micro, small and medium enterprises the Government of India is giving numerous benefits to these companies. Also, the registration of companies under the ministry of micro, small and medium company is free of cost.
Surbhi Singla
Associate at Aggarwals & Associates, S.A.S Nagar, Mohali
