MSME stands for Micro, Small and Medium Enterprises categorized based on the annual revenue in business. These entities possess MSME registration certificate, registered with MSME Department of the Central Government under MSME Development Act, 2006.
MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. Though the MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for lower rates of interest, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment subsidies and other support.
Loans at Subsidised Rate
Loan benefits are promoted by the government through distinctly prescribed norms. The entities with registered would be able to get their loans passed at a lower rate of interest and with much ease because of the subsidized rates offered to MSME registrants.
Protection against delayed payment of buyers
The buyers buying from MSMEs are liable to pay on time if they are buying goods or services from MSMEs.
Avail 50% rebate on TM Application
Government fees on Trademark application for entities such as Company, Partnership Firm and LLP are higher compared to individual and proprietorship firms. These entities may claim 50% rebate on the Government fees by submission of MSME registration certificate. Similarly, there is a rebate prescribed in Patent registration also.
Credit Guarantee Scheme
This is also known as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE). It is more supportive to small-scale industries that provide the credit and income input from various sources to support industries which are under struggle.
A Copy of proprietor’s Aadhar card or of director(s) or partner(s) in other cases like Udhyog Aadhar Registration
A Copy of PAN card of the business entity; and of director or partner, if applicable
Entity’s PAN Card
A copy of PAN Card of business entity
PAN & Aadhar Card
A copy of Aadhar Card of Proprietor/ Partners/ Directors
Business Address Proof
Latest Electricity bill/ Any Tax paid bill/ Municipal Khata Copy
If the place is rented, rent agreement is mandatory, else consent letter is sufficient
Latest Bank Statement/ Copy of cancelled cheque/ copy of the first page of passbook
Certificate of Registration
An Entity should provide registration certificate with MoA- AoA / LLP Agreement or Partnership Deed as applicable