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; and
ii. 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
The Provisional
Registration Certificate (PRC) will be valid for a fixed period of 5 years from
the date of issue of PRC.
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