Key Benefits of MSME Registration in India

by Ananya Nair Accounting and Legal Services

Udhyog Aadhaar registration in India is an easy process to start businesses in India. After registering your business through Udhyog Aadhaar, the Government of India also offers a wide range of benefits to the MSMEs, which they can avail easily.

What is MSME?

MSME stands for Micro, Small and Medium Enterprises. In the economic growth of the country, the MSME sector plays an important role. MSME sector has been established to develop the micro, small, and medium businesses in India. The MSME business provides a significant contribution to industrial units, exports, manufacturing, and employment for economic growth. Udyog Aadhaar sector is popularly known as the Small Scale Industry (SSI) in India.

Two different categories of MSME businesses working in India. The eligibility of the MSME sectors depends upon the machinery investment and business plant in India. These two categories include:

Manufacturing Enterprises

The micro-business earning less than INR 25 lakh per annum, the small business having an earnings below INR 5 crore per annum, and medium business having total earning less than INR 10 crore per annum.

Service Enterprises:

The micro-enterprises with an earning less than INR 10 lakh, a small business with annual revenue less than INR 2 crores and at the end medium business with an earning less than INR 5 crore are considered as service enterprises in MSME sector.

Key Benefits of MSME Registration for Businesses in India

Micro Businesses can get bank loans at lower interest rates in comparison to regular loans
Availability of Tax rebate
MSMEs mainly gets the benefits to offer services for Special government tenders.
Easy credit accessibility and industry set-up and patents at a low cost.
High preference from the government in terms of licensing and certification
One time settlement option for the unpaid amount