{"id":18452,"date":"2020-10-26T18:41:16","date_gmt":"2020-10-26T13:11:16","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=18452"},"modified":"2020-10-26T18:41:19","modified_gmt":"2020-10-26T13:11:19","slug":"benefits-of-an-msme-ssi-registration-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/benefits-of-an-msme-ssi-registration-in-india\/","title":{"rendered":"What are the Key Benefits of an MSME\/SSI Registration?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">MSME registration is a government- oriented\nscheme to be availed by micro, small and medium-sized enterprises. These\nentities are accountable for the economic growth of the company. In simple\nterms, the economic growth of the company and MSMEs growth are inter-related. <\/p>\n\n\n\n<p>The <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> can be done on the online portal known as \u201cUdyam registration\u201d. Here, in this blog, we will make you become accustomed to the advantages of an MSME\/SSI Registration. This includes tangible as well as intangibles benefits to trade and entrepreneurial growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Benefits of an MSME\/SSI Registration<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"787\" height=\"426\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-94.png\" alt=\"Benefits of an MSME\/SSI Registration\" class=\"wp-image-18453\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-94.png 787w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-94-300x162.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-94-768x416.png 768w\" sizes=\"(max-width: 787px) 100vw, 787px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>Below are the key advantages of MSME\/SSI Registration. Those are as follows:-<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Collateral Free loans from banks<\/h3>\n\n\n\n<p>In the absence of collateral security, many\nMSME\/SSI Registration companies may find it enormously difficult to secure a\nloan for starting a new industry. The credit Guarantee scheme, aka CGS, was\nlaunched by the Indian Government to help SSI to avail credit from banks\nwithout any collateral. The scheme encompasses existing as well as new\ncompanies. The Indian Government in collaboration with the Ministry of MSME\nlaunched a Trust called Credit Guarantee Fund Trust for Micro and Small\nEnterprises (CGTMSE) to deploy funding schemes for Micro and Small\nEnterprises.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">50% subsidy on Patent registration<\/h3>\n\n\n\n<p>Enterprises under MSME registration are\neligible to avail fifty percent of subsidy related to registration filing an\napplication to concerned ministry.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1% exemption on the rate of interest on overdraft<\/h3>\n\n\n\n<p>Enterprises having MSME\/SSI Registration\ncan avail a one percent exemption on the rate of interest on overdraft as per\nthe scheme.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Subsidy on Industrial Promotion&nbsp;<\/h3>\n\n\n\n<p>Enterprises under MSME\/SSI Registration can avail the Industrial Promotion Subsidy as prescribed by the <em><strong>Indian Government<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government_of_India\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Protection against delayed payments<\/h3>\n\n\n\n<p>The Ministry of Micro, Small, and Medium\nEnterprises safeguards the MSME oriented entities against the unexpected delay\nin payments from buyers. It also protects the right of interest on payment\ndelay via arbitration of the dispute in a minimal timeline. <\/p>\n\n\n\n<p>If any MSME registered company engaged in\nsupplies of goods or services then they have to disburse the payment on or\nbefore the date agreed upon between the parties. In case if the agreement\ndoesn\u2019t enclose a payment date, then the buyer needs to make payment in the\ntime span of 15 days from the date of the acceptance of services or goods.<\/p>\n\n\n\n<p>Moreover, in any case, a payment due to the MSME register entity cannot be 45 days from the date of the acceptance of services or goods. In case of payment failure, the buyer is liable to bear the compound interest as well as a monthly interest applicable to the due amount. The penal interest amount on the due payment is 3 times of the bank rate as per the notification of RBI.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/can-startups-benefit-from-msme-registration-for-better-govt-support\/\">Can Startups Benefit From MSME Registration For Better Govt Support?<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Concession in the Electricity Bills<\/h3>\n\n\n\n<p>Enterprises under MSME\/SSI Registration\nneed not bear an electrical bill to its exact value as the government offers a\nscheme under which such expenses have been waived off to a certain limit.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reimbursement of ISO Certification charges<\/h3>\n\n\n\n<p>Enterprises under MSME\/SSI Registration\ncertificate can avert unnecessary expenses related to the ISO certification by\nfiling an application to the concerned authority.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Exclusive purchases under MSME Market Development\nAssistance Scheme<\/h3>\n\n\n\n<p>MSME Market Development Assistance Scheme\nconsolidates 358 items that are exclusively available to small scale industries\nand medium enterprises registered under the MSME scheme.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Technology Support to MSMEs<\/h3>\n\n\n\n<p>The government has a special reimbursement\nscheme for MSME registered entities willing to promote clean energy and improve\ncost-effectiveness. Moreover, the government also provides adequate backing to\nensure the seamless implementation of clean energy and preparation of audit\nreports by reimbursing the expenditure related to it.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Permission for Infrastructure Growth<\/h3>\n\n\n\n<p>Since MSMEs generate a considerable amount\nof employment irrespective of the nature of the sector, the government also\ntries to pinpoint training sectors for MSME and provide financial aid for\nimproving the infrastructure for entrepreneurial growth.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Access to Global Trading Platforms&nbsp;<\/h3>\n\n\n\n<p>The Indian Government arranges several\ncraft fairs, exchange programs, trade-oriented events, and exhibitions\nglobally. Companies under MSME registration have access to these platforms that\neventually let them foster countless national and international business\nconnections. Moreover, the government has also waived off significant\nexpenditures related to the export of goods through deploying subsidies and\ntechnical support.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Exemption on Excise duty<\/h3>\n\n\n\n<p>Enterprises under MSME\/SSI Registration\nneed not pay excise duty in the initial phase of the business as per the\nguideline of the Excise Exemption scheme drafted by the government and based on\nbusiness activity.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Access to Government Tender&nbsp;<\/h3>\n\n\n\n<p>Enterprises under MSME certification have\naccess to several government tenders. MSME based entities get special treatment\nfrom the government in this context.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Subsidy on bar code registration&nbsp;<\/h3>\n\n\n\n<p>Enterprises under MSME Registration are\neligible for Bar Code Registration subsidy as provided in the scheme.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Relaxation in Security Deposit&nbsp;<\/h3>\n\n\n\n<p>The ministry of MSME in collaboration of\nIndian government offers given relaxations to companies under MSME registration\nwhile filing an application for government-oriented tenders:-<\/p>\n\n\n\n<ul><li>No charges adhere to the\nissuance of tender<\/li><li>No need to pay out the earnest\nmoney<\/li><li>Waiver of security deposit up\nto a certain limit specified under the scheme.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Relaxation on NSIC Performance and Credit ratings<\/h3>\n\n\n\n<p>Enterprises that secured by MSME registration\ncan avail of the prescribed relaxations on NSIC Performance and Credit\nratings.&nbsp;The interest rate for companies under MSME registration is\nsignificantly lower than other companies. <\/p>\n\n\n\n<p>Certain targets are set for banks\u2019 lending\nto the Micro and Small Enterprises. The banks\u2019 have to achieve a 20% growth in\ncredit to micro and small enterprises and 10% annual growth in the number of\nmicro-enterprises accounts and 60% of total lending to the Micro and Small\nEnterprises sector.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion&nbsp;<\/h2>\n\n\n\n<p>Well, the MSME registration process provides both tangible and intangible advantages to the enterprises willing to work under the same. MSME registration helps the enterprises to withstand rapidly evolving competition and taxation changes. If you wish to avail of the advantages of MSME registration for small and medium businesses, then you must choose MSME registration without exception.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-msme-registration-and-how-to-get-it\/\">What is MSME Registration and how to get it?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MSME registration is a government- oriented scheme to be availed by micro, small and medium-sized enterprises. These entities are accountable for the economic growth of the company. In simple terms, the economic growth of the company and MSMEs growth are inter-related. The MSME registration can be done on the online portal known as \u201cUdyam registration\u201d. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":18468,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1147],"acf":{"service_id":"71"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":6713,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18452"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=18452"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18452\/revisions"}],"predecessor-version":[{"id":18467,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18452\/revisions\/18467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/18468"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=18452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=18452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=18452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}