IS YOUR BUSINESS BENEFITED?

ARE YOU AN MSME?

With the advent of Indian youth skewed towards startups and entrepreneurship, the government introduced a special
act for MSMEs. Since then the things are getting more organized and advanced and India is turning out to be an overtly
transforming nation. The government has been unhesitantly introducing beneficial schemes for supporting MSMEs to
exist and grow swiftly. They working firmly to encourage MSM Enterprises engaged in the manufacturing and
production, and processing or preservation of goods to realize entrepreneurs that starting up doesn't cost an arm and
a leg anymore.

To avail those benefits given by the government, your business must be registered as an MSME with the ministry.

You’ can be registered as an MSME if –

1. You are an enterprise engaged in the Manufacturing and Service enterprises where the investment in plant
and machinery/ equipments is –

ENTERPRISE CATEGORY MICRO SMALL MEDIUM

Manufacturing Enterprises Rs. 25 lakh Less than Rs. 5 crore Less than Rs. 10 crore
Service Enterprises Rs. 10 lakh Less than Rs. 2 crore Less than Rs. 5 crore

BENEFITS OF MSME REGISTRATION

1. LOAN BENEFITS: Due to the MSME registration, your business get –

- cheaper interest rate around 1 to 1.5% on regular loans.

- easy access to credit.
- priority lending to cluster financing.
- an opportunity to adopt latest quality management standards.
- specialized services at MSME general banking branches at public sector banks.
- a composite loan limit of Rs.1crore can be availed.
- 15% import subsidy on fully automatic machinery

2. ESAY LICENSES & APPROVALS: Enterprises having the MSME Certificate get easy access –

- to obtain licenses, approvals and registrations in any field for their business.
- reimburse the ISO Certificate Expenses by making an application to the respective authority.
- Business registered under MSME are given higher preference for government license and certification.

3. BUSINESS INCUBATIONS: The ministry implements –

- special support for Entrepreneurial and Managerial Development of SMEs through Incubators.
- various schemes to nurture innovative business ideas (new/indigenous technology, processes,
products, procedures, etc).
- financial assistance falling in 75% to 85% of the project cost per schemes on incubation with Business
Incubators (BIs).

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 - BIs are also eligible to avail Rs. 3.78 lakh for infrastructure and training expenses for incubating 10
ideas.
- any individual or Micro and Small Industries (MSEs) that has an innovative business idea at near-
commercialization stage can approach the Business Incubators approved under the scheme.
- handholding support to new idea/entrepreneur from various institutions like Engineering Colleges,
Management Institutions, Research labs, etc. having an in-house incubation facilities.

4. TAX BENEFITS & EXEMTIONS: There are various tax rebates offered to MSME such as –

- MSME Registration and expansions are exempted from payment of Stamp Duty and Registration fees.
- direct Tax Exemption in the initial year of business.
- credit for minimum alternate tax (MAT) can be carried forward for up to 15 years instead of 10 years.

5. SPECIAL SUBIDIES ON TRADEMARK, PATENT REGISTRATIONS ETC.:

- your enterprise may avail Bar Code Registration subsidy.

- 50% subsidy for the patent registration by making application to its respective authority;
- subsidy on the expenditure for obtaining product certification licenses from National/International
standardization bodies.
- subsidy to an extent of 75% of the actual expenditure towards licensing of the product to
National/International Standards.
- GOI assistance per MSME (i.e. Rs.1.5 lakh) for obtaining product licensing/marking to National
Standards and Rs. 2.0 lakh for obtaining product licensing/marking to International standards.

6. SPECIAL MSME TENDERS: There are many government tenders which are only open to the MSME Industries.

7. RECOVERY OF DELAYED PAYMENTS: MSME Tribunal has been for early recovery of delayed payments. There
is a One Time Settlement Fee for non-paid amounts of MSME.

If you are a start-up business with above-mentioned investment amounts on plants and machinery/ equipments, it is
advised to get your business registered as an MSM Enterprise to avail benefits of the schemes & subsidies prescribed
by the government.

Please feel free to get in touch if you have any doubts or you seek clarifications.

We wish you luck for your business.

Happy Working!

With Warm Regards,

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