A New announcement in Budget 2019
GST registered MSMEs can get 2% interest subvention from Government for incremental loans of Rs 1 crores under the MSME Credit Scheme.
MSME stood for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.In India MSME play very important role in the development, employment and also in exports. As per the database provided by MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports.
BENEFITS OF MSME REGISTRATION
Easy Bank Loan up to 1 Crore without collateral / mortgage: The Govt. of India and SIDBI has launched a Credit Guarantee Scheme (CGSME) to make available collateral-free credit to SMEs.
Preference in procuring Government tenders: The Government of India gives special preference in buying from Micro and Small businesses through Govt. tenders.
1% exemption on interest rate on Bank Over draft (OD): Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on over draft (OD).
Concession in Electricity bills: Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department.
Protection against the delay in payment from Buyers: Maximum period for payment for purchases from MSME shall not exceed 45 days, in case of delay, the buyer is liable to pay interest to the SME supplier, at 3 times of the bank rate.
Tax Rebates: MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
Special 50% discount on Govt. fees for Trademark & Patent: Enterprises that have MSME Certificate can avail 50% subsidy for patent & trademark registration.
Fast resolution of disputes: Enterprises undergoing a dispute with regard to payments may refer the dispute to the MSME Facilitation Council for conciliation & arbitration.
What are Micro, Small and Medium Enterprise?
MSME are classified into two categories:i. Manufacturing enterprise; andii. Service enterprise.A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
DOCUMENTS REQUIRED FOR MSME REGISTRATION
1.Company PAN Card or Proprietor’s PAN card
2.MOA, AOA & Incorporation Certificate ( if applicable )
3.LLP Agreement/ Partnership deed
4.Company Address Proof
5.Adhaar Card
6.Banks Details(Ifsc & A/c Number Only)
7. Information About Your Business
What is the validity for MSME Certificate.
The Provisional Registration Certificate (PRC) will be valid for a fixed period of 5 years from the date of issue of PRC.