The micro, small and medium enterprise registration is an online process that makes obtaining professional assistance more easier. The nine primary micro, small and medium enterprise advantage and benefit of obtaining micro, small and medium enterprise registration for your firm will be discussed below.
We reviewed the procedure and other specifics of acquiring micro, small and medium enterprise registration in our previous piece as well as why we need micro, small, and medium enterprise for our economy and growth sake. The top nine benefit of micro, small and medium enterprise registration and udyam registration that can be obtained with the award of micro, small and medium enterprise registration are listed in this article. These benefit include both monetary and non monetary benefit related to commerce and entrepreneurial development.
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Let us take a look at the nine most important advantage of micro, small and medium enterprise registration. The benefit of micro, small and medium enterprise registration can greatly assist you in developing and improving as well as building effective business model for your company.
Lending with priority.
Priority lending is our first micro, small and medium enterprise perk. Whether you own a cutting edge technology company and a masala packing company that employs rural women as well as your business will inevitably require credit and loan for long and short term finance. By virtue of reserve bank of india directive and bank have certain specified money that must be paid to micro, small and medium enterprise on a mandatory basis. Producing an micro, small and medium enterprise certificate allows you to apply for this financing more quickly and with fewer problem.
Lower interest rate as well as better loan availability and access.
Many business owner may find it difficult to obtain a loan to start their firm if collateral security is not provided. With an micro, small and medium enterprise registration however all bank are required to issue loan at lower interest rate than usual and one may be able to take advantage of this benefit from many banking institution for their financing need.
Exemption from income tax.
There are various micro, small and medium enterprise registration benefits that can save thousands of dollars in tax liability if this certificate is not obtained. Enterprise can profit from a presumptive foundation of taxation which relieves them of the burden of keeping through books of account and undertaking audit procedure.
Credit linked guarantee program.
Credit guarantee fund trust for micro and small firm was founded by the ministry of micro, small and medium enterprise and the small industry development bank of india to implement the credit guarantee fund scheme for micro and small enterprise. Individual micro, small and medium enterprise can borrow up to 50 lakh without putting up any collateral under this scheme.
Government sponsored market support and export promotion.
The indian government hosts a number of international exchange programmes and craft fairs as well as exhibition and trade related event. Being classified as a micro, small and medium firm grant you access to all of these channel for international trade cooperation and the development of new business relationship. Subsidy and tax exemption as well as technical assistance are all used by the government to encourage micro, small and medium enterprise to export goods and service.
Infrastructure development capital and other grants.
Because micro, small and medium enterprise are a sector that create job and support entrepreneurial initiative the government also identify training sector for micro, small and medium enterprise and provide capital grant for infrastructure improvement and entrepreneurial development.
International standard organization certification reimbursement.
All registered micro and small industry can receive an exemption of all fee incurred for obtaining international standard organization 9000 and international standard organization 14001 as well as hazard analysis critical control point certification in order to promote the standard and certification achieved by micro, small and medium enterprise in order to improve their performance across sector.
Purchase made just for you and protection from the competition.
The central government follows a price and purchase preference policy as part of the micro, small and medium enterprise market development assistance scheme. More than 358 good are listed under it for purchase by the central government exclusively from medium, micro and tiny entity.
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Support for micro, small and medium enterprise in terms of technology and quality improvement.
The government reimburses project costs toward these goals for micro, small and medium enterprise sector unit as well as expenditure incurred for the implementation of clean technology and preparation of audit report as well as subsidy for licencing product according to national and international standard in order to improve cost effectiveness and promote clean energy use in manufacturing.
Micro, small and medium enterprise online application.
The micro, small and medium enterprise registration procedure offer a variety of monetary and non monetary incentive and reward. These micro, small and medium enterprise registration benefit are linked to the business entrepreneurial and trade development. If you wish to take advantage of the benefit of micro, small and medium enterprise registration for your micro, small and medium firm you should do so immediately.