Why the MSME Registration is Important for Organizations?
MSME stands for Micro, Small and Medium Enterprises. The MSME registration is a legal procedure to register the micro, small and medium enterprises under the Ministry of Micro, Small and Medium Enterprises.
The MSME organizations receive numerous benefits for registering and being a part of the Ministry.
The numerous advantages of MSME registration are:-
- Financial Assistance
The MSME registered organizations get priority lending from government banks for their business operations. The banks also provide short-term financing to the MSME registered companies. They can eventually develop their companies to grow much bigger with the financial aid and assistance being provided by the Government.
- Lower Interest Rates
The MSME registered companies are provided higher credit with a significantly lower interest rate. This enables organizations to function more effectively and develop at a faster pace.
- Income Tax Exemption
The MSME registered companies can enjoy the privilege of tax exemption and the ones that are not registered as MSMEs will have to pay taxes in lakhs.
- Trade Matters
The Government extends support to the MSMEs to promote their products or services in various exhibitions and drive more sales. The Government also provides certain incentives for the export of good or services. The trade relations with different countries is also enhanced with the classification of Micro, Small and Medium enterprises.
- Infrastructure
The Government provides the MSME organizations with capital and other grants that would help boost the infrastructure at environmental as well as technical level. The Government also aims at boosting the entrepreneurial spirit in the entire nation.
- Ahead of Competition
The MSME registration provides the organizations with exclusive purchase preference policy and that helps the organizations to stay ahead of the competition.
MSME registration provides both monetary as well as non-monetary benefits. Hence, organizations need to get MSME registration.
BDS Legal Services is one of the leading MSME registration consultants with MSME registration office in Pune and across India.
