There’s no reason to believe that if you’re a micro, small, or medium-sized business now, you won’t be an international corporation one day. Many successful international corporations today began as a micro, small, or midsize business. The only thing they did differently was to understand the route to success, which includes MSME Registration online.

Why should you sign up for MSME?

You might be wondering why you need to register your MSME. As the owner of a small business, you have two options for raising funds: rely on banks and pay exorbitant interest rates, or risk taking out loans from local moneylenders for immediate working capital. Having an MSME registration can dramatically transform the situation.

Subsidy for Patent Registration of 50%:

You must have encountered the issue of a high patent registration fee. If you have an MSME registration, you can save 50% on the cost by taking advantage of the subsidies. You may easily protect your intellectual property and realise your dream of one day becoming a well-known firm.

Loans with No Collateral:

If your company is MSME-registered, banks and NBFCs may provide you collateral-free loans. To get a loan or pay a higher interest rate, you don’t have to put any of your assets on the line. Without relying on local moneylenders, you can simply obtain working cash.

Interest on overdrafts is not charged:

If you’re a registered MSME, you can get a 1% interest rate reduction on your overdraft. This cost reduction of one percent will be extremely beneficial to your business.

Policy on Reservations:

As an MSME, you are a labor-intensive company that employs a large number of people. Keeping this in mind, the government has granted MSME the exclusive licence to manufacture specific products. If your company is registered as an MSME, it can create approximately 300 of these products.

Upgrades in Technology for Small and Medium-Sized Enterprises:

Under the Capital Aid for Technological Upgradation Scheme, the government has made necessary steps to register firms as MSME, allowing them to replace their equipment at a reasonable cost. For such modifications, your organisation may be able to obtain a lower-interest loan from a bank.

Defend yourself from late payments:

The most significant benefit of MSME registration is that you won’t have to worry about late payments. If you have supplied products to an organisation as an MSME, the customer must pay within the payment deadline. If no payment deadline is specified, the buyer must make payment within 15 days after receiving the goods or services.

How do I register my MSME?

MSME registration is a pretty simple process. It is now much easier to do, thanks to technological advancements such as the internet. The procedure takes very little time. You’ll need to fill out a brief form and attach a few papers. Your Aadhar card, name of industry, residence, and bank details are the paperwork you’ll need to connect.

The Benefits of Msme Registration

If you’re a micro, small, or medium-sized business owner, you should know that starting July 1st, you can register for MSME online. During the COVID-19 pandemic, organisations such as Udyam Registration Portal have made it easier for company owners to apply for MSME grants online rather than travelling out.

The online process is straightforward, and you will not be required to provide any further documents other than your Aadhar card and a self-declaration. The registration is fully integrated with the systems for income tax and GST.

MSME registration is important for a variety of reasons. It’s useful to be aware of them:

• If a company is registered as an MSME, bank loans are less expensive. The interest rate on these loans is 1 to 1.5 percent, which is significantly lower than the interest rate on ordinary loans.
• MSME registration gives for a 15-year credit for minimum alternate tax instead of the usual 10-year credit.
• Once the registration is complete, the cost of obtaining a patent or starting a business is reduced because the business owner is eligible for numerous rebates and concessions.
• As the Udyam Registration Portal interacts with the Government e-market and other State Government Portals, it becomes easier to engage in government tenders.
• Non-paid payments are subject to a one-time settlement charge.

The MSME programmes that can help

The government has created a number of MSME initiatives to assist micro, small, and medium-sized businesses.

Business houses can cut production costs and have a clean development mechanism in place by using energy-efficient technologies.

Business owners who have registered can file a complaint quickly. One can check the status of a complaint and, if not satisfied, reopen it.

Innovators may have their ideas, designs, and products implemented quickly. Business houses may also be able to receive financial aid for such activities.

The procedure for registering an MSME

MSME registration is now completed totally online. A fresh registration can be done with or without an Aadhar number and a PAN card. Organizations such as Udyam Registration assist company owners in obtaining this registration without difficulty.

They assist at every stage, so the business owner does not have to worry about making a mistake. The government certificate of registration is immediately available after they pay the requisite money.

Suggested Read: Print Udyog Aadhaar Certificate