{"id":20910,"date":"2020-12-02T12:42:44","date_gmt":"2020-12-02T07:12:44","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=20910"},"modified":"2020-12-02T15:32:11","modified_gmt":"2020-12-02T10:02:11","slug":"how-msme-registration-can-ensure-business-growth","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/","title":{"rendered":"How MSME Registration Can Ensure Business Growth?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">MSME is known as&nbsp;Micro, Small, and Medium Enterprises which are considered as the greatest asset to the economy because their contribution is remarkably huge, unlike other sectors. At present, the MSMS sector accounted for&nbsp;45% of India\u2019s Total Industrial Employment and 50% of the country\u2019s total exports. MSMEs operating across the country produce more than 6000 types of products. <\/p>\n\n\n\n<p>The aforesaid figure indicates that MSMEs are the backbone of the economy and would continue to dominate other sectors in upcoming years. Even if the entity is serving the manufacturing or service sector, the MSME Act allows them to avail <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> without imposing any limitation. The MSME came into existence on October 02, 2006, and since then it has been playing a pivotal role in leveraging the struggling sector of the economy i.e. micro small, and medium enterprises.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#What_is_the_Purpose_of_MSMEs_in_India\" >What is the Purpose of MSMEs in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#What_are_Micro_Small_and_Medium_Enterprises\" >What are\nMicro, Small, and Medium Enterprises?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#Is_Registration_Compulsory_For_MSME\" >Is Registration Compulsory For MSME?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#How_Long_is_the_MSME_Certificate_Valid\" >How Long is the MSME\nCertificate Valid?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#Schemes_Unveiled_By_the_Government_under_MSME\" >Schemes Unveiled By the Government under\nMSME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#Benefits_of_MSME_Registration\" >Benefits of MSME Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-msme-registration-can-ensure-business-growth\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Purpose_of_MSMEs_in_India\"><\/span>What is the Purpose of MSMEs in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unlike bigger firms, Small and medium enterprises are more\nlikely to encounter economic turbulence. This is where MSME registration proves\nso beneficial for these entities. It allows these entities to flourish\nseamlessly by providing them access to a growth-centric scheme and easy\nfinancial aid.&nbsp;The purposes of MSMEs are as follows:-&nbsp;<\/p>\n\n\n\n<ul><li>To enhance the fiscal advancement<\/li><li>To set up regular earning sources<\/li><li>To ensure self-sufficiency within small scale sectors by overcoming obstructions.<\/li><li>To ensure the business growth.<\/li><li>To promote technology advancement with the implementation of new technology.<\/li><li>Replacing outdated technology with new ones to ensure improved growth and production.<\/li><li>Attracting industries toward growth-centric schemes.&nbsp;<\/li><li>Providing fiscal aid to industries struggling to safeguard their existence under immense competition or any other reasons.&nbsp;&nbsp;<\/li><li>Rendering easy credit to MSMEs across the country with lower interest rate and repayment policy.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Micro_Small_and_Medium_Enterprises\"><\/span><strong>What are\nMicro, Small, and Medium Enterprises?<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The existing MSME classification was purely based on the\ncriteria of investment in equipment and machinery. Therefore, to avail the MSME\nbenefits, the MSMEs have to confine their investment to a lower limit. The\ntabular representation given below explains the same.&nbsp;<\/p>\n\n\n\n<p>The lower limits present in the table acting as a constraint for the growth of the entities as they struggle to scale their business further. This eventually raises the demand for the revision of MSME classification so that entities can go for expansion while continuing to avail the benefits of MSME.&nbsp; Fortunately, the government responds to this situation and comes up with a revised classification of MSME under the <strong>Aatmanirbhar Bharat Abhiyan<\/strong><sup><a href=\"https:\/\/www.india.gov.in\/spotlight\/building-atmanirbhar-bharat-overcoming-covid-19\"><strong>[1]<\/strong><\/a><\/sup>. The revised scheme is based on investment and annual turnover. Also, the revised scheme gets rid of the distinction that separates the service and manufacturing sectors under the MSME definition. The following table represents the revised MSME classification.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Registration_Compulsory_For_MSME\"><\/span>Is Registration Compulsory For MSME?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>S.No\n  <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Enterprises\n  <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Investment\n  &amp; Turnovers<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Limits<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>1.<\/strong>\n  <\/td><td>\n  Micro \n  <\/td><td>\n  A)Investment\n  in equipment and machinery \n  <\/td><td>\n  <strong>(&lt;Rs. 1 Cr.)<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  B)\n  Turnover\n  <\/td><td>\n  <strong>(&lt;Rs. 5 Cr.)<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>2. <\/strong>\n  <\/td><td>\n  Small \n  <\/td><td>\n  A)Investment\n  in equipment and machinery\n  <\/td><td>\n  <strong>(&lt;Rs. 10 Cr.)<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  B)\n  Turnover\n  <\/td><td>\n  <strong>(&lt;Rs. 50 Cr.)<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>3.<\/strong>\n  <\/td><td>\n  Medium\n  <\/td><td>\n  A)Investment\n  in equipment and machinery\n  <\/td><td>\n  <strong>(&lt;Rs. 50 Cr.)<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>&nbsp;<\/strong>\n  <\/td><td>\n  &nbsp;\n  <\/td><td>\n  B)\n  Turnover\n  <\/td><td>\n  <strong>(&lt;Rs. 250 Cr.)<\/strong><strong><\/strong>\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>MSME registration is availed voluntarily and it is not mandatory\nfor any kind of entity. But it is not wise to put MSME registration out of the\nequation since it offers strings of benefits to the small and medium sized industry\nthat ensure their growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Long_is_the_MSME_Certificate_Valid\"><\/span>How Long is the MSME\nCertificate Valid?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MSME registration serves lifetime validity as long as the\ncompany remains in existence and carry out their operation in a normal fashion.\nThe provision of renewal does not apply to the MSME certification.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Schemes_Unveiled_By_the_Government_under_MSME\"><\/span>Schemes Unveiled By the Government under\nMSME<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Government of India under MSME has rolled out host of schemes\nfor betterment of small and medium scale enterprises. These schemes are\ngrowth-centric and have been promulgated by taking financial standing of the\nMSMEs into account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Quality &amp; Technology Upgradation Scheme<\/strong><\/h3>\n\n\n\n<p>Registering to this particular scheme will enable the MSMEs to utilize energy-efficient technologies i.e. EETs in manufacturing units. The scheme will ensure cost-efficient production and seamless business growth. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Complaint Tracking System<\/strong><\/h3>\n\n\n\n<p>Registering to this scheme would allow the business owner to\ntrack the status of their complaints. With this system in place, all the\nbusiness owners can overcome the unnecessary trouble of being misguided in a\nparticular matter of concern.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Support for Managerial and Entrepreneurial Development of MSMEs\nthrough Incubators<\/strong><\/h3>\n\n\n\n<p>This scheme advocates new ideas, designs, or products. This scheme has been in effect since May 2019. Its primary goal is to provide opportunities to the innovators in nurturing their unique ideas for developing new products and ensure business growth.&nbsp;&nbsp;The scheme also promotes engagement with incubators who will suggest such MSMEs in developing the business by supporting them in strategy, design, and execution. The Enablers will play&#8217; an essential role and would be essential part of the business development in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Credit Linked Capital\nSubsidy Scheme<\/strong><\/h3>\n\n\n\n<p>Under this scheme, the latest generation of technology is\nprovided to the entrepreneurs to supersede the outdated technology. This scheme\nallows business owners to obtain a capital subsidy to revamp their old technology.\nThe MSMEs seeking capital subsidy for technology up-gradation can reach out to\ndesignated banks.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_MSME_Registration\"><\/span>Benefits of MSME Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This section explains the arrays of benefits offered by the MSME registration, which are as follows:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-MSME-Registration.png\" alt=\"Benefits of MSME Registration\" class=\"wp-image-20912\" width=\"454\" height=\"454\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-MSME-Registration.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-MSME-Registration-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-MSME-Registration-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Benefits-of-MSME-Registration-768x768.png 768w\" sizes=\"(max-width: 454px) 100vw, 454px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Cheaper Bank Loans<\/h3>\n\n\n\n<p>The entities having MSME registration are eligible to avail of\neasy credit from designated financial institutions at a cheaper rate of\ninterest. At present, the interest rate for MSME registered entities has been\ncapped within a range of 1 to 1.5%.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Credit for Minimum Alternate Tax (MAT)&nbsp;<\/h3>\n\n\n\n<p>MSME registration enables entities to avail credit for minimum\nalternate tax, which can be carried forward for up to fifteen years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Availability of Rebates and Concessions<\/h3>\n\n\n\n<p>MSME registration offers rebates and concessions to the\nregistered firm, which in turn allows them to rejoice reduced cost on account\nof filing a patent application for new technology.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Access to Government Tenders<\/h3>\n\n\n\n<p>With the integration of the <a href=\"https:\/\/corpbiz.io\/learning\/new-enterprise-under-udyam-registration\/\"><strong>Udyam Registration<\/strong><\/a> Portal with Government e-Marketplace, the MSME registered entities become eligible to access the e-tenders.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Availability of One Time Settlement Fee<\/h3>\n\n\n\n<p>MSME registered firms can opt for One Time Settlement Fee in\ncase of the repayment defaults against the loans.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MSME registration aims at uplifting the small entities from a financial and growth viewpoint. Since it packs a host of productive benefits, one can opt for this registration to trigger the development of their business. Apart from that, MSME also takes care of the financial well-being of the small entities by providing easy credit at a nominal interest rate.<\/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\/msmes-to-incorporate-new-it-system-that-support-e-invoicing\/\">\nMSMEs to Incorporate New IT system that Support e-invoicing\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MSME is known as&nbsp;Micro, Small, and Medium Enterprises which are considered as the greatest asset to the economy because their contribution is remarkably huge, unlike other sectors. At present, the MSMS sector accounted for&nbsp;45% of India\u2019s Total Industrial Employment and 50% of the country\u2019s total exports. MSMEs operating across the country produce more than 6000 [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":20922,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1271],"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":4434,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20910"}],"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=20910"}],"version-history":[{"count":24,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20910\/revisions"}],"predecessor-version":[{"id":20965,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20910\/revisions\/20965"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/20922"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=20910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=20910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=20910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}