If you Keep a small business where your investment in plant and machinery does not exceed INR 10 crore (INR 5 crore service provider) you can become a small, medium or micro enterprise. It is best to take MSME registration due to its benefits such as availability of debt, Government recognized entity, to avail any subsidies or tax avail that are provided by Government only to the MSME/SSI.
- How make you get MSME Registration?
Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under MSME Act. It will save you from a lot of inconveniences later on. After assigning you the Provisional MSME Certificate and you can begin with your production and even apply for a Permanent Certificate which will add more advantages for you. Always embed for provisional registration at an initial stage of the business.
- Is SSI/MSME Registration voluntary or compulsory?
As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs ordinarily get this done to make use of the advantages offered under it. The registration process is neck & crop easy and simple. You can easily profit it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations
- Why should I apply prior to commencing operations?
It is advisable to get a Provisional SSI Registration Certificate (PRC) prior to starting your operation in your enterprise. The PRC will work smoothly for you and will help you out with particular NOCs and clearances from regulatory bodies
- For how long is an MSME Provisional Registration Certificate (PRC) valid?
The validation of a PRC is for 5 years and if the unit is stable not under operational then you may constant re-apply for it. As soon as you start with your operations, you can easily apply for the Permanent License.
- How does SSI/MSME help to me get a loan from a bank?
MSME are recognized from all the institutions and banks. Special schemes are drafted to recognize them as well. Banks prefer MSME instead of normal enterprises to lend loans. The possibility of getting an sanctioned loan is too higher in a case of MSME. Bank loan interest rates will also be short. There may also be preferential treatment in case of delay in repayment
- What avail are given to MSME by state and central government?
Many state government prefers enterprises which are registered under MSME Act. Subsidy such as on power, taxes, and much more is offered by state governments. In most of the states, sales tax exemption is provided purchase preferences is given on goods produced. The enterprise may also relish excise exemption scheme and exemption from Few direct taxes in the initial years of your business