Benefits of MSME Registration
Benefits of MSME Registration in India
Let’s take a closer look at why MSME Registration is so helpful for small businesses:
- Easy access to loans under CGTMSE: The Government of India established the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to improve the lending system and increase the flow of loans to small businesses. When a business is registered, banks trust it more and often provide loans without needing any collateral, like property. This makes getting loans easier and cheaper, which helps save money in the long run.
- 50% subsidy for trademark of patent registration: MSMEs can get a 50% discount on patent registration costs, making it cheaper for them to protect their inventions. Patenting is essential for these small businesses that invest a lot in research, as it secures their rights to their creations and prevents others from using their ideas without permission.
- Protection against delayed payment from buyers: MSMEs often struggle with late payments from buyers, which can disrupt their cash flow and financial health. To tackle this, the government has introduced the Samadhan portal. This platform allows MSMEs to report buyers who fail to pay on time. This effort helps ensure MSMEs are paid promptly for their goods and services, boosting their financial stability.
- Full reimbursement for ISO certification charges: Although ISO certification might be costly for small firms, it aids MSMEs in gaining the trust of suppliers and customers. MSMEs can receive free ISO certification as assistance with this, which covers the cost of meeting certification standards. Their quality standards are raised and their ability to compete in the market is strengthened by this support.
- Concession in electricity bills: Government-registered small and medium-sized enterprises receive monthly power bill savings. These cost reductions enable them to invest more in growing their business, such as through hiring more employees or purchasing new equipment. Their growth is aided by this support, which also benefits the economy.
- Overdraft interest exemption of 1% in a scheme that differs from bank to bank: Subsidies on overdraft interest rates is a key benefit of MSME registration. The benefits include cheaper overdraft fees, which improves cash flow management and lessens financial strain during lean times.
How to Get Udyam Registration Online?
To obtain Udyam Registration online, MSMEs can follow these simple steps on the Udyam registration portal:
- Step 1: Visit Udyam registration portal (https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm)
- Step 2: On the homepage, click ‘For new entrepreneurs who are not registered yet as MSME or those with EM-II.’
- Step 3: Enter the ‘Aadhaar Number’ and the ‘Name of Entrepreneur,’ then click the ‘Validate & Generate OTP’ button.
- Step 4: Enter the OTP sent to the mobile number linked with the Aadhaar card and click on the ‘Validate’ button.
- Step 5: In the PAN verification page enter the ‘Type of Organisation’ ‘PAN’ number and click the ‘Validate’ button. Also, indicate whether you have filed the previous year’s ITR and if you have a GSTIN.
- Step 6: Fill in all required details in Udyam registration application form.
- Step 7: Provide the investment and turnover details and select the declaration. Click the Submit button and get the final OTP.
- Step 8: Enter the final OTP received and submit the form. You will receive the Udyam e-registration certificate in your email.
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About Red Fort Capital
Red Fort Capital is dedicated to empowering Indian MSMEs (Micro, Small, and Medium Enterprises) on their path to business growth through customized business loans. We understand that securing a business loan in India can pose significant challenges, particularly when factors like a less-than-ideal credit score, a relatively short business history, unclear financial records, or variable cash flow come into play.
As a respected Non-Banking Financial Company (NBFC), we take pride in offering a diverse range of secured business loans, spanning from 1 to 10 Crores. What sets us apart is our remarkable ability to disburse funds fast, in just 7 days. Our financial solutions are meticulously designed to cater to a spectrum of needs, including working capital requirements, equipment and machinery purchases, invoice/bill discounting, and last-mile financing, among others.
