The Micro Small & Medium Enterprises (MSMEs) are defined in India under the MSMED Act 2006 on the basis of capital investment made in plant and machinery, excluding investments in land and building. MSME is the second-largest employment generating sector after the agriculture sector. It provides 80% of jobs in the industry with just 20% of the investment. MSME registration which is also known as Udyog Aadhaar registration, give various benefits to a number of small business in India. So here in this article, let us understand what the benefits of Udyog Aadhaar registration are.
Benefits of Udyog Aadhaar registration
- Benefits under taxation
Taking into consideration the kind of business you do, you can avail of excise duty exemption. Moreover, you can also enjoy direct tax exemption benefits in the initial growth phase of your business.
- Delayed payment issues
The Government helps the MSMEs against buyers that do not pay on time. During the supply of goods and services, if there is a date that has been mentioned in the agreement between the MSMEs and the buyers, the payment is supposed to make on or before it. If no due date has been mentioned, the buyer has to initiate the payment within 15 days after the goods and services have been accepted. No payment, however, shall exceed forty-five days after the goods and services have been supplied. In case the buyers do not comply with these provisions, they have to pay the penalty due to the delay in payments. The MSME registration makes sure the needs of small entrepreneurs like you aren’t compromised.
- Avail Trademark registration in minimum price
The MSME registration certificate can help you in trademark registration as well. It gives you the opportunity of having a 50% subsidy in the payment of fees while you’re registering for a trademark or a patent.
- Business Expansion
The Government helps the Micro, Small and Medium Enterprises in participating in foreign export by providing financial assistance. This way, your export and import interests are well taken care of. MSME benefits like these motivate people to become entrepreneurs and run businesses successfully.
- Interest on Overdraft
If your SSI is registered under the MSMED Act, you can enjoy a 1% exemption on the interest rate on overdraft facilities. The OD facility, however, differs from one financial institution to the other.
- Subsidies and Government Schemes to promote your industry
The State Governments have launched a number of schemes that help in promoting the business of SSIs. Some schemes like Pradhan Mantri Employment Generation Programme and Skill Development Programme go a long way in developing your enterprises. Also, the Government provides subsidies to help raise your revenues.
- Reduction in Electricity Bills
If your business enterprise is registered under the MSMED Act, you can enjoy a huge concession on your electricity bills. This way, you can reduce the amount of fixed cost you incur in managing your business. The MSME registration benefits give way to the proper development and growth of your industry.
Here in this article, we have understood the benefits of MSME registration online, it will be surely useful for you to grow your business. If you’re wondering for MSME registration then you should visit the MSME registration portal and complete MSME registration process with bliss .
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