October 16, 2019
The Government of India is making policy changes that will help Startups to register and operate under the MSME categories. This plan will help strengthen the Start-Up India initiative under which businesses that are not more than a year old can avail MSME loans and various other preferential benefits.
MSME stands for enterprises that fall under the micro, small and medium enterprise categories. As per the 2006 MSMED Act, enterprises involved in manufacturing or production, and processing or preservation of goods are defined as having the following investment in plant and machinery:
- Micro: INR 25 Lakhs or less
- Small: INR 25 Lakhs to 5 Cr
- Medium: INR 5 to 10 Cr
Enterprises providing or rendering services are defined as having the following investment in equipment:
- Micro: Up to INR 10 Lakhs
- Small: INR 10 Lakhs to 2 Cr
- Medium: INR 2 Cr to 5 Cr
How can Startups Register Under MSME
Startups can avail the benefits offered under the MSME act by getting an MSME registration. Some of the top benefits provided by Central Government for MSME registration include:
- Easy loan availability
- Eligibility for lower rates of interest
- Excise exemption schemes and exemption under direct tax law
Some of the benefits offered by the State Government and Union Territories for MSME registration include:
- Tax subsidies
- Power tariff subsidies
- Capital investment subsidies
New businesses can apply for MSME registration by approaching the District Industries Center or the Khadi & Village Industry Boards with your business plan and profitability statement. If you are starting a business that will cost you less than one crore, then the District Industries Center can help you obtain bank loans. They will also help you to obtain PCB clearance, Udhyog aadhar card certificate, etc. You can visit your respective state’s official website and apply online with your Aadhar number and can also submit a duplicate of your application to the National Small Industries Corporation’s Zonal or Branch Office.
Raise funding for business development
An MSME registration can provide a wide range of benefits including, quick loan availability, lesser interest rates, and subsidies to startups with innovative ideas in the field of marketing, production, IT services and more. Here at Nitstone Finserv, we have been continually helping budding entrepreneurs with MSME loans that can help accelerate their business. To know more about the benefits of MSME registration, availability of MSME loans in Bangalore, and loan eligibility criteria, call us at 080 2226 8766.