Benefits of MSME Registration
1. The Udyam Registration may help MSMEs in availing the benefits of Schemes of Ministry of MSMEs such as Credit Guarantee Scheme, Public Procurement Policy, additional edge in Government Tenders & Protection against delayed payments etc.
2. Becomes eligible for priority sector lending from Banks.
3. It will be a permanent registration and basic identification number for an enterprise
4. There will be no need for renewal of Registration
5. MSMEs registered with the MSME ministry stand to benefit from a 50% subsidy on their patent registration fees
6. Businesses and enterprises registered as MSMEs can avail a benefit of 1% on the OverDraft in a scheme that differs from bank to bank.
7. In order to protect registered companies, the Supreme Court has mandated that any buyer of goods or services from registered MSMEs is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods or services. If the buyer delays the payment for more than 45 days after accepting the products or services then the buyer has to pay interest on the amount that was agreed to be paid. The interest rate is three times the rate that is notified by the Reserve Bank of India.
8. All companies that have the MSME Registration Certificate are entitled to concessions on their electric bill.
9. Any registered micro, small and medium enterprise can claim reimbursement of the expenses that were made in order to obtain an ISO certification.
10. The Government has introduced various initiatives for MSME/SSI that allow them to avail credit without collateral.