In this article, we are going to discuss about MSME, Micro, Small & Medium Enterprises. Our Government is continuously focusing on MSMEs by launching various schemes. In the year 2006, MSME Act, 2006 was introduced. This Law was brought to give a boost to our economy and to promote youth towards entrepreneurship.
There are lots of benefits given by Government to entrepreneur, who is registered under the MSME Act, 2006. Before exploring the benefits, lets first begin with the facts that who all are eligible to get registered under the MSME Act, 2006
An entrepreneur gets registered in the MSME Act only when he, satisfy the below two conditions:-
First Conditions is that it should belong to the eligible business segment
And Eligible business segment are:-
– The Manufacturing Sector ,
– Service Sector
It means an entrepreneur who is in the trading business is not eligible to get registered in the MSME Act
The above described 2 Sectors( Manufacturing & Service) are eligible to get registered in MSME but only when they satisfy the Second Condition of this Act, i.e., Annual Turnover, and the details of the same are as follows:
| Particulars | Micro | Small | Medium |
| Manufacturing/Service Sector | Annual Turnover is Upto 5 Crore | Annual Turnover is More than 5 crore but less than 75 crore | Annual Turnover is More than 75 crore but less than 250 crore |
Once both the conditions are satisfied, the magic box of benefits gets opened, upon the registration under MSME Law. Now let’s begin with the benefits of MSME:-
- The lower interest rate on bank loan (Collateral free or unsecured loan):- Government of India has made collateral-free credit available to all small and micro-business sectors with lower interest rates
- Preservation of delayed payments:- The MSME lends to give a lift to enterprises who are registered in this Act and facing a problem of delayed payments by giving them a right to collect their delayed payments with interest from the buyer
- Subsidy on patent registration:- 50% subsidy is given to the Enterprise who has the certificate of registration granted by MSME. But this benefit of subsidy can be availed only by giving an application to the respective industry
- Reimbursement of ISO (International Organisation for Standardlization) certification charges:- The registered MSME enterprises can claim the reimbursement of the expenses that were spent for the ISO certification
- Lesser electricity bill:- This benefit of less electricity bills can be availed by any MSME registered enterprise by giving an application to the electricity department
- Preference in Government Tenders:- MSME registered enterprises will get higher preference in any government tender
Apart from benefits, there are so many services which are launched by Government under this Act for the betterment of entrepreneurs and give the best escalation to their enterprises to compete with different Corporate who are on the top of the same sector or same field.
The Schemes are:-
- Prime Minister Employment Generation Programm
- Prime Minister employment generation program
- Interest subsidy eligibility certificate
- Development of Khadi, Village & Coir industries
- Science & Technology scheme
- Coir Vikas Yojna
- Technology Upgradation & Quality Certification
- Financial support to MSMEs in ZED certification scheme
- Building awareness on Intellectual Property Rights (IPR)
- Marketing promotion scheme
- International cooperation
- Marketing assisting scheme
- Entrepreneurship & skill Development Program
- Assistance to Training Institution
- Entrepreneurship Skill Development Programm
So this is brief details about the benefits available to the MSME. And it is a must Registration for New Startup to avail, all the benefits available for MSME. To know more about MSME Registration and Benefits, keep exploring the updates.
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