MSME Registration

The MSME stands for Micro, Small and Medium Enterprises and is the main Government body that deals with the management & preparation of guidelines, rules, and laws regarding small scale industries in India.

On October 02, 2006, the MSME (Micro, Small and Medium Enterprises) became operational and it was introduced to facilitate, develop & promote the competitiveness of the MSME.

The MSMEs are considered vital for the Indian Economy as this sector plays a vital role in the industrialisation of the Rural & Backward areas.

MSME Registration is attained as per the MSMED Act, 2006 and obtaining MSME Registration in India is not mandatory, but it shall be taken into consideration that the entities or businesses with MSME Registration are eligible to avail of various schemes and benefits made by the Government.

Any company that holds an MSME Registration can obtain loans from banks at a comparatively cheaper rate, approximately 1- 1.5 %. This is much lower than the normal bank rates;

Various Tax Rebates and Exemptions are provided to MSMEs;

MSMEs are permitted to carry forward the credit for MAT (Minimum Alternate Tax) up to a period of 15 years, which in the general case is ten years;

There are various tenders available only for the industries having registration under MSME Act;

MSME receives easy credit facility from various Financial Entities;

Industries having registration in MSME Act are given higher preference in comparison to normal industries;

Companies or the industries holding an MSME Certificate have better growth opportunities as they get direct entry into major national and international trade fairs and also have better occasions to present themselves to the world;

MSMEs are qualified to obtain Collateral free loans as banks do not accept any collateral security for the loan amount up to Rs 10 Lakhs;

Industries having registration under MSME are qualified to get reimbursement of ISO Certification;