A country’s main development depends upon the MSME sector and this has been proved very well in the case of India. It acts as the economy’s backbone and plays its role well in the development sector.
What is meant by MSME?
MSME – Micro, Small and Medium Enterprise plays a major contribution in the Industrial units, contributing to 45% of India’s total employment industry, the total export of 50% and all of the industrial units of 95% of India. The industrial units are known to manufacture more than 6000 varieties of products. In other words, when these industrial units grow, it gives way for the development of the country. These industrial units are called SSI’s or Small-scale Industries.
There are many small and big industrial units running in the country. Few of the industries are registered, whereas few do not think of it as a necessity. No matter, whether they run in the service line or manufacturing line, they must get it registered for it benefits their company at the endpoint. The industrial units miss on the fact that the registered company is benefited regarding loans, taxation, business set-up, credit facilities and many more. Hence it is important that the industries register their units.
The main aim of the MSME registration was to facilitate, promote and aid in the development of the industrial units. The government has classified the MSME sector into two categories and they are as follows.
- Manufacturing Enterprises
- Service Enterprises
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Know about the MSME Registration Process
The government has not only benefited the industries with many schemes and plans, but it has also made the registration process simple. The MSME registration online can be completed by filling out just a single form. The registration process is very simple and can be completed without much struggle either online or offline.
If registration is required for industries numbering more than one, then it can be registered individually also. Apart from this, there are few documents demanded during the registration process and they are as follows.
- Industry name and address
- Employees number and the date of business start-up
- Personal Aadhar number
- Details of bank account and IFSC
- General information
One must make note that the government does not charge any for the registration process. Hence, it is advisable that they stay away from fraud and fake agencies.
Benefits of MSME Registration
- If an industry is registered, then they can avail of a bank loan easily and also with a much lower interest rate. The interest rate is usually between 1 to 1.5% which is much lower than that of the regular loan’s interest.
- Many taxes are also known to be refunded for the MSME sectors.
- The MAT – Minimum Alternate Tax can be carried for 15 years to that of the 10 years.
- Many government schemes and tenders are open only to MSME industries.
- The credits are easily accessed
- The benefit of registration is that it will automatically lower the setting-up cost or any other industry-related cost.
- The industrial units that are registered are given much preference and are valued when compared to the non-registered units.
- The registration is considered as a certificate that acts as the business proof
- The MSME trade fair will give more opportunity for the newcomers
- MSME has only a settlement fee of one time for the amounts that are non-paid.
The MSME registration of industrial units plays a very important role in the development of the sector. It is because of the registration process, their standard of quality will be improved which automatically gives way for more opportunities. The registration requires a certain standard and quality that must be followed so that their business quality is improved in the market both nationally and internationally. The government also makes sure that the industries are introduced to the latest technologies through campaigns, seminars, activities and many more.
The women of the country also have been benefited by the government schemes and have made them independent in the male dominated industrial units. They are provided with loans, training, counseling and many more.
Every year, the government recognizes the best and hardest working industrial sector and rewards them. They are awarded accordingly based on their performance and also their contribution to the country. In the end, the MSME sector benefits the country and in turn the country aids in their development.