Benefits of MSME/SSI Registration

The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. Benefits available under the MSMED Act Registration of Micro, Small and Medium (MSM) Enterprises under MSMED Act is a very powerful medium to enjoy the regime of incentives offered by the Centre generally contains the following MSME Registration Online:

Micro and Small Enterprises:

  1. Easy finance availability from Banks, without collateral requirement
  2. Protection against delay in payment from Buyers and right of interest on delayed payment
  3. Preference in procuring Government tenders,
  4. Stamp duty and Octroi benefits,
  5. Concession in electricity bills
  6. Reservation policies to manufacturing / production sector enterprises
  7. Time-bound resolution of disputes with Buyers through conciliation and arbitration
  8. Reimbursement of ISO Certification Expenses
  9. Credit prescription (Priority sector lending), differential rates of interest etc.
  10. Excise Exemption Scheme
  11. Exemption under Direct Tax Laws.
  12. Stamp duty and Octroi benefits,
  13. Statutory support such as reservation and the Interest on Delayed Payments Act.
  14. Subsidy on ISO Certifications
  15. Subsidy on NSIC Preformance and Credit ratings
  16. Participation in Govt Purchase registrations
  17. Regsiattion with NSIC
  18. Counter Guarantee from Govt of India through CGSTI
  19. Waiver in Earnest Money (Security Deposit ) in Govt tenders
  20. Stamp duty and Octroi benefits,
  21. 15% weightage in price Preference.
  22. Reduction in rate of Interest from banks (Subject to ratings)
  23. Free of Cost Govt tenders

(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI). Learnerships –  Learnerships, Internships, Bursaries jobs in South africa and Jobs vaccancy in Southern Africa. Relevant Internship programmes are available as advertised by both the public and the private sector. Visit : www.yourjobs.co.za..

States/UTs have their own package of facilities and incentives for small scale. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.

Medium Enterprises:

  1. Easy finance availability from Banks, without collateral requirement
  2. Preference in procuring Government tenders
  3. Reservation policies to manufacturing / production sector enterprises
  4. Time-bound resolution of disputes with Buyers through conciliation and arbitration

The Buyers have to ensure whether those suppliers of goods and services are under the purview of MSMED Act i.e. the Buyers have to confirm the registration of the suppliers under the MSMED Act.

The Buyer should ensure the payment before the end of credit period decided else the interest would be payable.

In case of disputes, application to Micro and Small Enterprises Facilitation Council (MSEFC) would trigger the conciliation and arbitration process. Once the application is done under MSEFC, there is no provision to withdraw the proceedings. Therefore, the Buyer should ensure the best ways to resolve the disputes, if any, instead approaching to MSEFC in the initial stages of dispute.

The Buyers need to ensure that the Buyer does not owe any outstanding amount including interest due to MSM Enterprises for more than 15 days. Otherwise, the Buyer needs to disclose this non-payment in the Annual Financials of the Buyer.

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