MSME stands for Micro, Small, and Medium Enterprises, and any enterprise that falls below any of the three classes mentioned within the MSMED, Act can apply for MSME registration in Chennai. Phenix Tax- tax Consultant in Tambaram, Chennai says, it plays a crucial role within the development of the industrial economy and is the backbone of any economy that results in tremendous economic growth, promoting just development for all. MSME Enterprises are generally a lot of labor-intensive than capital intensive and supply a colossal employment potential at an awfully low capital cost. MSME conjointly shares a serious portion of commercial production and exports in India.
Therefore, to push and develop MSMEs; the MSMED Act of India facilitates the promotion and development of enterprises by introducing and promoting several incentives, schemes, and subsidies to obtain the advantages below MSMED Act.
Who can register as an MSME?
Only producing or Service Enterprises may be registered below the MSME. The Classification limit for each producing and service sector is constant.
|Manufacturing & Service
|Investment < Rs. 1 Crore and Turnover < Rs. 5 Crore
|Investment < Rs. 10 Crore and Turnover < Rs. 50 Crore
|Investment < Rs. 50 Crore and Turnover < Rs. 250 Crore
What are the advantages of Registration?
- The bank loans become cheaper due to the MSME Registration in Chennai because the rate of interest is incredibly low around ~1 to 1.5%. Much low interest on regular loans.
- It conjointly allowed credit for Minimum Alternate Tax (MAT) to be carried forward for up to fifteen years rather than ten years, according to a Tax Consultant in Chennai.
- Once registered the price of obtaining a patent done, or the price of fitting the trade reduces as several rebates and concessions are offered.
- MSME registration helps to accumulate government tenders simply as Udyam Registration Portal is integrated with Government e-Marketplace and numerous alternative regime portals that provide quick access to their marketplace and e-tenders.
- For non-paid amounts of MSME, there is one Time Settlement Fee.
50% grant on Patent or Trademark Registration
The Enterprises registered below the MSME get a hefty grant of fifty percent within the government fee of the patent and trademark registration.
Collateral Free Loans from Bank
The Government of India has launched the Credit Guarantee Fund theme (CGS) for providing small and tiny Enterprises collateral-free credit to them. Credit Guarantee Fund Trust for Medium and Small Enterprises (CGTMSE) is established by The Ministry of micro, small, and Medium Enterprises, Government of India, and Small Industries Development Bank of Republic of India (SIDBI) for the implementation of CGS. Emergency Credit Line Guarantee Trustee Company (ECLGS) is launched by the government of India as a booster to the MSME sectors bringing three lakh crores further funding at a concessional rate of interest of 9.25%. The National Credit Guarantee Trustee Company (NCGTC) can offer 100 percent guarantee coverage to eligible MSME and MUDRA borrowers in the form of a Guarantee Emergency Credit Line.
Relief of 1 % on the interest rate of the overdraft facility
All the enterprises that have registered below the MSME will avail the exemption of 1% on the rate of the overdraft facility provided by the Bank. The MSME enterprise has to give an application to the bank. However, this can be not constant rates may differ according to the bank says a Tax Consultant in Chennai.
Electricity bill Concession
The enterprises registered as an MSME after creating an application to the Electricity Department get concession in the electricity bill.
ISO application fees compensation
Taking AN ISO certification may amount to an important expense for a company. However, the MSME are benefited by the government because the MSME enterprises get the compensation of the ISO fees paid by them by giving an application.
Privilege in Government Tenders
By amending the overall monetary Rules 2017 the government notified that the worldwide tenders are disallowed in government acquisition up to Rs. 200 crores. This can be an enormous boost for the MSME enterprises as they have to not vie with a world organization and it will facilitate their growth. There are more edges provided to MSME enterprises from time to time by the government.
Documents needed for MSME registration
Following are the documents required for MSME registration in Chennai
- ADHAR card of the Proprietor/ Partner / Director
- Name of the applicant
- Business Name
- Type of Business Entity
- Address of the Plant
- Address of the workplace
- Date of Commencement of the Business
- Bank Details (Account No. and IFSC code)
- Business Activity Details
- Number of workers
- Investment in Plant and Machinery and instrumentality
- Photo and Id Proof of mortal
- Mobile No. of mortal (Linked with AADHAR)
- Email Id for OTP Verification
Details needed for MSME registration
Aadhaar is necessary for the MSME Registration in Chennai. MSME Registration is of no charge. MSME Registration is Valid for a lifetime period.
5 simple steps of Registration below MSME
MSME registration in Chennai requires 5 simple steps as mentioned below:
Step 1 – Go to UDYOG AADHAAR web site https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
Step 2 – Enter the AADHAAR No. and click on generate OTP. The OTP is sent to the mobile number connected to your AADHAAR.
Step 3 – Fill in the main points as necessary in the registration form
Step 4 – Click on Submit before entering the OTP
Step 5 – Post OTP validation your MSME Certificate can be seen on the screen with the UAM No.
MSME Schemes launched by the Government
Technology and Quality Up-gradation Scheme:
Registering during this theme can facilitate the micro small, and medium enterprises to use energy economical technologies (EETs) in producing units therefore on cut back the price of production and adopt a clean development mechanism.
Grievance observation System:
Registering below this theme is helpful in terms of obtaining the complaints of the business owners self-addressed. In this, the business house owners will check the standing of their complaints, open them if they’re not glad about the result.
This theme helps innovators with the implementation of their new style, concepts, or product. This theme provides monetary help for establishing ‘Business Incubators’. This theme promotes new concepts, designs, products, etc.
Credit joined Capital grant Scheme:
Under this theme, new technology is provided to the business owners to switch their recent and obsolete technology. A capital grant is given to the business to upgrade and have higher suggests that to try and do their business. These micros, small, and medium enterprises may directly approach the banks for these subsidies