MSME - The Micro, Small, And Medium Enterprises
India, being a young country, is undergoing significant transformations. Similarly, the government is willing to implement favorable programs to support existing or developing MSMEs. MSME stands for micro, small, and medium enterprises. The Ministry of MSME is also working hard to convince MSM businesses involved in the manufacturing, processing, or preservation of goods, that starting a business doesn’t have to be costly.
During the last five decades, the micro, small, and medium enterprises and startup sectors have grown into lively and active elements of the Indian economy. Firstly, it contributes to the country’s economic and social development by encouraging entrepreneurship. And, second only to agriculture, providing the most job opportunities at the lowest cost of capital. In other words, it was developed to assist MSMEs in becoming more competitive by promoting, enabling, and strengthening their competitiveness.
Do you want to optimize your company’s potential? Get your MSME registration with our assistance. At Egniol, we have a team of professionals committed to helping all business owners obtain the maximum benefits available from the Indian government and law. For instance, we offer registration, compliance filing, and subsidy liaisoning services.
In 2006, the Indian government passed the Micro, Small, and Medium Enterprises Development Act (MSMED). It is as follows:
The chief objective of the scheme is to
- Reduce unemployment by creating new jobs.
- Encourage India’s entrepreneurial culture.
- District-level grassroots economic development
- Facilitates innovative entrepreneurial solutions for unmet social needs.
- Increase the competitiveness of the MSME sector by encouraging innovation.
What are the benefits of registering?
- From priority lending to cluster financing with subsidized bank loans, there are several choices available. And the possibility to implement the most up-to-date quality management standards.
- New industrial units and expansions registered as MSME are free from paying Stamp Duty and also Registration Fees for the first year of operation.
- Subsidies -A 50% subsidy for patent registration is being offered to the appropriate authority. Also, subsidy of up to 75% of the actual expenditure is available for product licensing to National or International Standards.
- The Udyam Registration Portal is linked to the Government e-Marketplace as well as several state government websites that offer easy access to marketplaces and e-tenders. As a result, registration as an MSME makes it easier to obtain government contracts.
- Similarly, once registered, the cost of obtaining a patent or starting a firm decreases due to many discounts and concessions available.
- MAT credits will take forward for up to 15 years, instead of 10 years,
- One can get finance for their business after their MSME registration
Banks: How Beneficial Are They?
- The registered ones have lower interest rates. Moreover, Public Banks that lend least 60% to small businesses are specialty micro, small, and medium enterprises.
- A composite loan ceiling of Rs. 1 crore will get obtained according to the RBI Master Circular on lending to the MSME sector dated July 1, 2010
The Support for Entrepreneurial and Managerial Development of Small and Medium-Sized Enterprises (SMEs) delivered through Business Incubators by Ministry. Program’s main purpose is to promote the innovation of new business concepts (new/indigenous technology, processes, products, methods, etc.) that can implemented within a year.
Any individuals or Micro and Small Businesses (MSEs) with a promising business concept can approach the scheme’s authorized business incubators. As such, other institutions with in-house incubation facilities, assist new ideas & entrepreneurs – engineering colleges, management schools, research labs, etc.
An incubator or host institute can submit up to ten-concepts for review, under this scheme. As a result, it covers 75%-85% of the project costs (INR6.25 lakh per concept). Besides, the BIs would also receive Rs 3.78 lakh (per idea) for infrastructure and training costs.
Relevance of MSME Registration
World MSME Day is celebrated on June 27th to recognize the importance of MSME enterprises in any economy’s growth and development. Above all, this day celebrates the contribution of MSMEs to the country’s economic growth and job creation.
MSMEs are rapidly expanding, thanks to government backing and young people interested in starting a new enterprise.
At Egniol Services we offer legal and accountancy services to Indian businesses, including everything from business registration to digital marketing. In other words, we’re startup enthusiasts with a passion for eCommerce, legal services, and business consulting. Contact us on our website to take advantage of our services.