There are many MSME registration benefits for an MSME. Micro, Small and Medium Enterprise or MSME is the backbone of the Indian Economy. To support them, the Indian government offers various schemes and incentives and also promote them through the MSMED Act. Though there are still infrastructural and a number of other problems, the Indian MSME sector has seen tremendous growth in the previous few years.
Having said that, it is mandatory for the MSME owners to register their business under MSME Act to avail various advantages. The registration, however, is not mandatory but there are various benefits of MSME registration. No matter what the company is – Sole Proprietorship, LLP, or Public or Private Company, registration can be done by all. Read how to obtain MSME registration certificate online.
MSME Registration Benefits
As said earlier, MSME registration is not mandatory but there are a few advantages of MSME registration. The following are the same:
50% Patent Registration
If the MSME owner has created some new innovative product or business model and wants to patent it, there is a very high fee applied for it. But if he has registered MSME, he can avail a 50% subsidy on it. The subsidy is allowed to encourage the small business entrepreneurs to invent, innovate, and register. A subsidy of up to 50% can be availed irrespective of the industry.
Interest Exemption on Overdraft
MSME owners who have a good CIBIL score and credit history can avail an overdraft facility with the banks. The MSME owner can get exemption on the interest of up to 1% on the facility. This can be extremely beneficial for an MSME. It is worth mentioning that not all banks give this facility and therefore, the business owners are suggested to check with their lenders first.
Lack of sophisticated technology may lead the MSME to not use its resources to their full potential. Under the Capital Aid for Technological Upgradation Scheme, the government helps these micro and small enterprises to upgrade new equipment and machinery by getting machinery loans at low interest rates. With the rise in technology, the government is more focused on encouraging MSMEs to get access to technology through financial aid and support.
Unsecured Business Loans
The one among the other MSME registration benefits is that the MSME registered enterprises can get access to collateral-free business loans from NBFCs and Online Lending Companies. This means that small and medium enterprises can take various types of loans from lenders without providing any type of security.
From the various MSME registration benefits discussed above, it is very simple to understand that MSME registration is very helpful and important. So, you can also register your business to avail all the benefits and uplift your business. Additionally, you can also register your business for free at the Connect App by ZipLoan to build your business network. Through the e-marketplace, you can create a business profile, list your products/services, find business, discover new business opportunities, and build connections.