MSME registration helps the Micro, Small, and Medium Enterprises to get loan, tax, govt license.
Micro, Small, & Medium Enterprise or MSME is the backbone of the Indian Economy. To support them, the Indian govt offers various schemes and incentives & also promotes them through the MSMED Act.
For the various registration benefits discussed, it is very simple to understand that MSME registration is very helpful and important.
Benefits of MSME Registration
1. 50% Patent Registration
If the owner has created some new innovative product or business model and wants to patent it. In this case, a very high fee applied to it. for registered MSME can avail 50% subsidy on it. This subsidy is allowed to encourage small business owners to invent, innovate, and register.
2. Interest Exemption on Overdraft
The MSME owner can get exemption on the interest of up to 1% on the overdraft facility. because they have good CIBIL scores and credit history.
3. Technological Reservation
The rise in technology, the government has focused on encouraging MSME to get access to technology through financial aid and support.
4. Unsecured Business Loans
MSME registered enterprises can get access to collateral-free business loans from NBFCs and online lending companies.