The Micro, Small and Medium Enterprises (“MSMEs”) form the foundation of India’s economy and are integral for the growth of employment, entrepreneurship and production in India. The functioning of the MSMEs in India is under the control of the Ministry of Micro, Small and Medium Enterprises.
Watch Now #LawWiser’s explainer on “Benefits of MSME Registration Part 1” featuring Sheena Ogra, Partner, Ahlawat and Associates sharing useful insights on MSME registration and its benefits.
These are some of the MSME Registration Benefits that Sheena takes us through.
>Collateral Free Bank Loans
The Ministry, Government of India and Small Industries Development Bank of India (SIDBI) have jointly established a Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE/Trust).
>Subsidy on Patent and Trademark Registration
A subsidy of 50% (fifty per cent) on the cost of filing is given to the enterprise which is registered under the MSME Act.
>Tender preference to MSMEs
The MSMEs can get tender preferences as a result of the policies which have been notified under the MSME Act, allowing them benefits such as exemption from payment of Earnest Money Deposits under the tenders floated by the central ministry, department or public sector unit.
>ISO Certification Charges Reimbursement
The MSMEs can avail financial and monetary incentives in the form of reimbursement of the expenses incurred in obtaining certain ISO certifications such as ISO-9000 (which prescribes
>Protection against Delayed Payments
The MSME Act provides for the resolution of disputes in case of delayed payments made to MSME’s through the Micro and Small Enterprise Facilitation Council (“Council”), which is established by each State Government.
The government has also targeted additional MSME registration benefits such as:-
During the COVID-19 pandemic, a special scheme, i.e., the Emergency Credit Line Guarantee Scheme (“ECLG Scheme”) was launched by the Government of India which provides for 100% guarantee coverage to banks and NBFCs to enable them to extend emergency credit facilities to MSMEs to meet their additional term loan and/or additional working capital requirements.
Sheena also takes us through other details, tune in to watch the full video!
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