What are the advantages of an MSME/SSI Registration? By DHARANI KUMAR - December 27, 2016 Last Updated at: Oct 12, 2020 0 43234 Udyam Registration can be filed online based on self-declaration with no requirement for documents of proof, barring Aadhar. Udyam Registration has also been fully integrated with the IT and GST systems. Finance Minister in May announced the change in definition of MSMEs as part of the relief package for the industry amid the coronavirus outbreak. According to Karnataka Small Scale Industries Association (KASSIA), MSMEs are seriously concerned about implementing the emergency COVID-19-related packages meant as a relief for industry as they face countless difficulties in accessing bank-level benefits. Interacting with the MSME entrepreneurs live through social media platform, Union MSME Minister reiterated that the micro, small and medium enterprises (MSMEs) are not required to deposit any earnest money in the tenders. He said, for MSMEs there are no requirements of security money, earnest money, turnover requirement etc in the government tenders. Every nation’s economic hopes are pinned on its young, small businesses. the Indian government, with this in mind, offers numerous benefits to such organisations so that they may achieve growth with less difficulty. To avail of these benefits, the organisations that qualify must get an MSME or SSI Registration (regulated by the MSMED Act), which is among the easiest of government registrations to be granted. Importance of MSMEs in India Micro, small and medium enterprises (MSMEs) power India, accounting for almost 40% of the gross industrial value and 45% of total direct and indirect exports. SSI certificate means the certificate issued for the SSI owners And SSI registration means the registration done to get the valid legal permission for the development of the SSI. There are many SSI registration benefits. Hence, the government has introduced various schemes and aids to ensure the MSME lead a struggle-free existence in the country, and also contribute, to the Indian Economy. Some of these schemes have been initiated by the central government, while others are promoted by the state government. To avail of them, however, you need a Udyog Aadhar registration. Benefits of an MSME Registration Let us see the advantages of SSI: Benefits from Banks: Moreover, all banks and other financial institutions recognise MSMEs and have created special schemes for them. However, this usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high, and lower bank interest rates. There may also be preferential treatment in case of delay in repayment. Tax Benefits: Depending on your business, you may enjoy an excise exemption scheme as well as exemption from certain direct taxes in the initial years of your business. Benefits from State Governments: Most states offer those who’ve registered under the MSMED Act subsidies on power, taxes and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preference on goods produced. Get FREE MSME Registration Benefits from Central Government: The central government, from time to time, announces schemes to benefit MSMEs, such as the credit guarantee scheme: Credit Guarantee Scheme (CGTMSE) One of the major struggles that the small scale industries face is credit and input of income from various sources to support them. The Credit Guarantee scheme introduced to support MSME comes with modifications to make it more beneficial for small traders: The salient features of the scheme include: 1. Enhancing the optimal eligibility loan from Rs. 25 lakh to Rs. 50 lakh. 2. Reducing the one-time guarantee for loans availed of by the MSME in North-Eastern region of India from 1.5% to 0.75%. 3. Increasing the extent of guarantee cover from 75% to 80% for: 4. Women operated Medium and small scale enterprises 5. Micro enterprises, for loans up to 5 lakhs 6. Loans obtained in North-Eastern region of the country 7. Reducing the one-time guarantee fee for all loans availed in North Eastern India from 1.5% to 0.75%. Apart from these benefits, the government also continues, in a phased manner, to enhance the ‘List of products reserved for purchase from MSME’. Indeed, a detailed list is available in the authorized website. Accordingly, the MSME is aided by the government to make use of these product lists, and manufacture and supply these products to large scale industries, and make profit in the process. Support services provided by State governments: Extended credit facilities Industrial extension support and services Availability of developed sites for warehouse construction Provision of training facilities Hire-purchase of machineries for use in MSME Assistance in marketing, both within the country and outside (exports) Assistance for construction of MSME industries in underdeveloped areas Technical consultancy, assistance in capital, and so on, for enhancement of technology in MSME MSME, hence, has several support systems in the state as well as the center, in terms of both starting a new project as well as its continued existence. The government also aims to supply trained professional, input resources and the flow of capital through assistance from venture capitalists, and through private equity funds. To know more about SSI/MSME Registration: Click here You should also read: What Is The Need Of Getting Your Business An MSME Registration How To Get An MSME Registration?