Msme Registration Benefits

This will be a permanent registration and basic identification number for an enterprise.
MSME registration is paperless and self-contained, There will be no need for renewal of Registration.
Protection against Delayed Payments: If the buyer delays the payment for more than 45 days after accepting the products or services then the buyer has to pay compound interest along with interests (monthly) on the amount that was agreed to be paid. The interest rate is three times the rate that is notified by the Reserve Bank of India.
Income Tax Exemption: Enterprises that have MSME Registration can enjoy Direct Tax Exemption in the initial year of business, as mention in the scheme by Government and depending on business activity.
1 % Exemption of Interest on Overdraft: MSMEs who have good credit history and have good relations with their banks can avail the overdraft facility. MSMEs get the advantage of 1% exemption on interest on overdraft facility. This could be extremely beneficial for MSMEs. However MSMEs should check with their lender as not all banks give this facility.
Collateral Free Loans: One of the biggest benefits of MSME registration is the collateral free loans one can avail through banks and NBFCs. This essentially means that SMEs and MSMEs can now take various loans such as working capital loan and credit line loan, without providing any collateral.
50 % Subsidy on Patent Registration: If you have created something new, a new innovative product or business model and want to patent it, there is a hefty fee applied for patent registration. But with the help of MSME registration, one can avail the patent registration at 50% subsidy. This move aims to encourage more entrepreneurs to invent and innovate. They can avail the 50% subsidy by registering with their respective industry.
Concession in Electricity bills: Enterprises that have “MSME Registration Certificate” can avail Concession on electricity bill by making application to electricity department along with MSME Registration Certificate.
Reimbursement of ISO Certification charges: Enterprises that have MSME Registration Certificate can claim reimbursement of ISO Certification expenses by making application to respective authority.
Waiever in Security Deposit and EMD in Government Tenders: Time to time government has announced many tenders where only MSME Industries can apply, The Government tender Waiver of Security Deposit and Exemption from payment of Earnest Money when the tenders Issue.

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