Banks provide no-collateral loans:
The Government of India released the Loans Guarantee Fund Scheme for Micro and Small Enterprises (CGS) to offer collateral-loose credit score to the micro and small commercial enterprise region. Existing and new corporations also are eligible for insurance beneath the scheme. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) turned into hooked up via way of means of the Ministry of Micro, Small and Medium Enterprises of the Government of India and the Small Industries Development Bank of India (SIDBI) to put in force the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
Also Read : Udyam Registration Portal
Manufacturing / manufacturing region reservation policies:
One of the important thing coverage tasks for selling this region has been the reservation of objects for exceptional manufacture withinside the SSI region, as furnished for via way of means of the Industries (Development and Regulation) Act, 1951.
The Reservation Policy serves purposes:
Ensure more desirable customer merchandise manufacturing withinside the small-scale region.
Increase activity possibilities via way of means of setting up small-scale industries.
Licenses, approvals, and registrations are pretty easy to obtain:
It has made it very clean for companies with an MSME Certificate to get hold of licences, permissions, and registrations from the correct government in any discipline for his or her commercial enterprise, as they’ll offer the Certificate of MSME Registration while submitting an application.
Special interest is paid to overseas exchange shows:
Financial help is furnished on a compensation foundation to State/Central Government corporations, industries/establishments Associations, registered societies/trusts, and corporations related to MSME beneath neath the International Cooperation Scheme for the deputation of MSME commercial enterprise delegations to different international locations to discover new regions of MSMEs. Indian MSMEs take part in overseas exhibitions, exchange fairs, customer-dealer meetings, and worldwide meetings and seminars which might be useful to the MSME region.
Benefits of Octroi:
Up to 31-3-2006, the programme of octroi compensation granted beneath near the Package Scheme of Incentives, 1993 might be protected withinside the new Scheme at the identical pattern. When an account-primarily based total cess or different levy is imposed rather than or in location of octroi, the trade is likewise eligible for a refund, much like octroi.
Stamp responsibility and registration expenses are waived:
IT gadgets in public IT parks are presently exempt from stamp responsibility and registration fees till March 31, 2006. All new commercial gadgets with MSME registration, in addition to expansions, will not be challenged to Stamp Duty and Registration expenses.
Exemptions from Direct Taxes:
MSME-registered corporations are eligible for Direct Tax Exemption withinside the first year of operation, as targeted withinside the government’s coverage and relying at the form of company.
Subsidy for barcode registration:
MSME-registered corporations can take advantage of the scheme’s Bar Code Registration discount.
NSIC Performance and Credit Ratings Subsidy:
MSME-registered corporations are eligible for an NSIC Performance Subsidy.
Are you eligible for an IPS subsidy:
As said withinside the scheme, MSME-registered corporations are eligible for the Industrial Promotion Subsidy (IPS).
Through the CGSTI, the Government of India presents a counter-guarantee:
MSME-registered corporations are eligible for a Counter Guarantee from the Government of India via the CGSTI.
Protection towards charge delays:
The Ministry of Micro, Small, and Medium Enterprises protects MSME-registered corporations from overdue bills from buyers, in addition to the proper to hobby on overdue bills, via mediation and arbitration, with dispute decision taking location withinside the shortest duration possible. If a customer purchases items or offerings from a micro or small commercial enterprise with MSME registration, the customer has to pay on or earlier than the date agreed upon among the customer and the micro or small commercial enterprise. If the settlement does now no longer specify a charge deadline, the customer has to pay within fifteen days of receiving the products or offerings. In any instance, a charge payable to a micro or small commercial enterprise can’t be not on time for greater than forty five days from the date of reputation or assumed reputation. If the customer fails to pay on time, the customer has to pay compound interest with month-to-month hobby rest to the dealer on the quantity due from the stipulated date of charge or fifteen days after reputation of products or offerings. The penalty payable to an MSME company for overdue charge is 3 instances the financial institution fee introduced via the means of the Reserve Bank of India.
Suggested Read: Udyam Registration Process