Benefits of Registration under MSME Act:-
- Collateral Free Bank Loan :- Due to COVID-19 Businesses need additional funding to meet operational liabilities built up, buy raw material and restart business. Government has come up with solution under the leadership of PM Narendra Modiji called ” आत्मनिर्भर भारत अभियान ” ” SELF-RELIANT INDIA MOVEMENT ” wherein one of the step taken is Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020. It means MSMEs can get Loan without giving any Collateral security that too with moratorium period of 12 months on Principal repayment. Last date to avail the scheme is 31st Oct, 2020.
- 50% subsidiary in patent registration
- Protection against delay payment :- In case of Delay in payments for more than 45 days of accepting the products or services then Buyer has to compulsory pay interest on such delayed payment.
- Udyog Aadhar is considered as proof of Business. Many Banks offers Zero minimum balance Current for MSMEs.
- In case of CC and OD MSMEs get Rate of Interest reduction by 1%
- Preference is given to MSMEs in allocation of Government tenders
- Production of Certain Products are reserved for MSMEs.
- Other benefits includes waiver of Stamp duty in certain cases, Reduction in Electricity Bill, Subsidy for ISO Registration
Documents Required for Registration
- Aadhar cards of Proprietor/Partners/Director
- Name of Business and Address Proof of Business
- Plant & Machinery and equipment Investment Details (Amount of investment)
- Number of employee in enterprise
- Date of Commencement of Business
- Details about Product and Services
- Bank statement with IFSC code
- Mobile number Email Address
- Social Category Details (General, OBC,ST.SC)