MSME (Micro, Small and Medium Enterprises) are the business entities that boost our economy at the grassroots level. In a developing country like India, MSMEs are the keystone of the economy and helps in the growth of the socio-economic condition of the country. The government has always motivated the small and medium industries. Also, the government always tries to provide benefits to them. That’s why it is important to get registered with the MSME. MSME registration is now known as Udyam registration. Let’s look at those benefits provided by the Government to MSME/Udyam registered companies. 


1. Collateral Free Bank Loan


A trust titled The Credit Guarantee Trust Fund Scheme was introduced by the GOI(Government Of India), SIDBI(Small Industries Development Bank Of India), and the Ministry of Micro, Small and Medium Enterprise to provide a Credit Guarantee Scheme for all Micro and Small Enterprises. The limit of collateral-free bank loans is up to 100 lakhs for individual MSEs. 


2. Subsidy on Patent Registration


A hefty 50% subsidy or a maximum of 15Lakhs INR per invention, whichever is lesser, has been given to the Enterprise that has the certificate of registration granted by MSME. This subsidy may be availed for patent registration through application to the respective ministry.


3. Low-interest rate on the loan


Enterprises or businesses after receiving an MSME registration certificate can avail a benefit of 1% on the Overdraft loan. And as per Union budget 2019, MSMEs which are registered under GST can avail of a 2% interest subvention. It is available for additive loans of Rs 1 crores under the MSME Credit Scheme


4.Industrial Promotion Subsidy Eligibility


Enterprises which are registered under MSME are eligible for a subsidy for Industrial Promotion as provided by the Government.


5.Protection against Payments (Delayed Payments)


Under the MSMED act 2006, there is a provision for delayed payment. The buyers of services or products from the MSMEs tend to delay the payment. The Ministry of Micro, Small, and Medium Enterprise contribute a helping hand to such enterprises by giving them the right to collect interest on the payments that are delayed from the buyer’s side. 


In case, if any MSME registered enterprise supplies any items or offerings to a purchaser then the purchaser is needed to make the fee payment within 15 days from the day once they had usual the products or the offerings from MSME or SCI registered enterprise( if there may be no written mention of the date of fee).


If the purchaser delays the fee for extra than forty-five days after accepting the goods or offerings then the purchaser has to pay the compound hobby in conjunction with interest (monthly) on the quantity that turned into agreed to be paid. The hobby fee is 3 instances the fee that turned into notified with the aid of using the Reserve Bank of India.


6.Fewer Electricity Bills


This concession is to be given to all the Enterprises that have the MSME Registration Certificate by providing an application to the department of electricity in addition to the certificate of registration by MSME.


7. ISO Certification Charges Reimbursement


The MSME registered business can claim the reimbursement of the expenses that were spent for the ISO certification.


8. Market Development Assistance Scheme for MSME


Under this scheme, The Central Government follows a Price and Purchase Preference coverage in which round 358 items are indexed for distinctive purchases through Central Government from the MSMEs only. There is numerous support like marketing assistance even for those products, which are manufactured by MSMEs but do not fall under the view of Reservation Policy.


9. 100% tax exemption for Innovative startups


No Income Tax is required to be paid for 3 years out of 7 Years – ie. Startups are eligible of getting a 100% tax exemption on profit for a period of three years in a block of seven years provided that annual turnover does not exceed Rs 25 crores in any financial year. It is Allowed under Income Tax Act. In this deduction, Companies existing for up to 10 years are still considered a startup. Income Tax Law also Allows credit for minimum alternate tax (MAT) to be carried up to 15 years instead of 10 years.


10. Tender Preference to MSME


Government announces many tenders where only MSME businesses can apply. Freshly, as a part of the Covid-19 relief package, the Finance minister has announced that there are issues of unfair competition from overseas companies in government acquisition tenders due to the size and capability differ and govt will not permit global tenders in such schemes up to Rs 200 crore.


 These are the many benefits of MSME registration in India, which can be only availed if your business is registered as an MSME/SSI under MSME Act. So, what are waiting for? Get register to MSME. You can register yourself at