Small enterprise can profit from micro, small and medium enterprise registration and udyam registration in a variety of ways. These company are the backbone of our economy. As a result the Indian government has a number of programme in place to assist them.
Even if the firm is a sole proprietorship, an limited liability partnership and a private corporation, it is beneficial for every micro, small and medium enterprise owner to register their business to take advantage of the benefit granted.
Some of the benefit of micro, small and medium enterprise registration for small enterprise include.
Subsidy for patent application.
If an micro, small and medium enterprise business owner wants to patent a new product and business strategy it will cost a lot of money but if the company is registered it can get a 50 per cent subsidy on it, regardless of the industry. Small business owner can innovate and register their enterprise with the support of this incentive.
Interest on an overdraft is not charged.
Only micro, small and medium enterprise with a solid credit information bureau limited score and credit history are eligible for bank overdraft. The owner of an micro, small and medium enterprise might receive a 1 per cent interest exemption which is favourable to micro, small and medium enterprise. However not all lender offer this service so business owner should check with them first.
Micro, small and medium enterprise may be unable to fully utilise their resource due to a lack of efficient technology use.
The government has a programme called capital aid for technological upgrading that assists micro, small and medium enterprise in upgrading their equipment and machinery by providing low interest machinery loan.
No collateral business loan.
Another advantage of an micro, small and medium enterprise is the ability to obtain unsecured loans from non banking financial corporation and other online lending organisation.
Decrease in late payment.
When you register your micro, small and medium enterprise the ministry of micro, small and medium enterprise protects you from late payment from purchasers and offer you the right to interest on late payment through a speedier dispute resolution process. If the micro, small and medium enterprise is registered the buyer must pay on the agreed upon dates if payment is not made on the agreed upon date the buyer must pay within 15 day of receiving the good.
The buyer will be charged a compound interest rate depending on the amount owed and the monthly interest rate if he does not pay on time. The penalty interest charged to an micro, small and medium enterprise for late payment is three times the reserve bank of india declared bank rate.
You might be able to get a discount on your electricity bill if you follow these step.
If your micro, small and medium enterprise is registered you can earn a discount on your power price by writing to the electrical department and submitting your registration certificate.
Can i get my international standard organization certification fee reimbursed?
Only when the micro, small and medium enterprise is registered can it claim reimbursement for international standard organization certification fee by filing a claim with the appropriate authority.
Benefit of micro, small and medium enterprise registration in india.
Micro, small, and medium enterprise are the lifeblood of any emerging economy. The micro, small and medium enterprise development act was created by the indian government to encourage and promote micro, small and medium enterprise through different subsidy programme and incentive. Udyog aadhaar for micro, small and medium enterprise registration is required to receive benefit under the micro, small and medium enterprise development act from the central and state government as well as the banking sector.
Registration of small business provide many benefit.
The registration of a small business is not needed by law. In india on the other hand the udyam registration process has been developed to assist all type of firm. After registering any business is eligible to make use of the micro, small and medium enterprise development act benefit. Easy bank loan approval and cheaper interest rate as well as an excise exemption plan and exemption under direct tax law and statutory support such as reservation and the interest on delayed payment act are only a few of the perk provided by the central government.
State government and union territory have also put up their own set of incentive and facility for micro,small and medium enterprise. The establishment of specialised industrial estate and tax subsidy as well as electricity tariff subsidy and capital investment subsidy as well as other support are some of the benefit provided by the state government for micro, small and medium enterprise. Both the centre and the state aim their incentive and assistance package to all units registered with them whether by law.
Also read udyog aadhaar print.
The words micro, small and medium enterprise have been inserted into the exemption announcement of banking law and excise law as well as direct taxes law. As a result the registration certificate provided by the registering authority is considered proof of micro, small and medium enterprise status and is required to access micro, small and medium enterprise advantage.