MSME registration in India provides several benefits to micro, small, and medium-sized enterprises.
Some of the major benefits are:
1. Easy access to credit: MSME registered businesses are eligible for various government schemes that provide financial assistance, subsidies, and loans at lower interest rates.
2. Protection against delayed payments: The MSME Development Act has provisions to protect micro and small enterprises from delayed payments by buyers. The buyer is required to make the payment within 45 days, failing which they will be liable to pay interest to the supplier.
3. Tax benefits: MSMEs can avail various tax benefits such as exemption from certain taxes, subsidies on patent registration, and reimbursement of expenses incurred for obtaining ISO certification.
4. Priority sector lending: Banks and financial institutions give priority to MSMEs while lending and have specific schemes for them.
5. Preference in government tenders: Government organizations and PSUs give preference to MSMEs in their procurement of goods and services.
6. Access to various government schemes: MSMEs can benefit from various government schemes for technology upgradation, marketing assistance, skill development, and more.
7. Brand building and business opportunities: MSME registration helps in building brand value and credibility, leading to more business opportunities and growth.
