MSME (Micro, Small, and Medium Enterprise) registration is essential to access benefits under the MSMED Act, including subsidies, schemes, and incentives from the central and state governments, as well as easier access to bank loans.
The Government of India offers a range of incentives and subsidies exclusively to registered MSMEs — unregistered entities are not eligible for these benefits.
Registered MSMEs enjoy easier access to government micro business loan schemes, with banks offering collateral-free loans and lower interest rates to support their growth.
The government offers financial assistance to registered MSMEs for participating in international expos to showcase their products globally.
MSMEs receive exemptions and are given preferential treatment when applying for government tenders, increasing their chances of securing projects.
The government reimburses the consultation fees paid by MSMEs for obtaining ISO certification.
MSMEs are granted various relaxations when obtaining registrations under different laws and securing necessary licenses and approvals.
MSME entities often receive waivers on stamp duty and registration fees, along with subsidies for patent registration, NSIC performance, and credit ratings.
The government offers protection to MSMEs against delayed payments. Companies must report to the ROC if dues to MSME suppliers exceed 45 days, and a faster dispute resolution mechanism is in place to safeguard MSME interests.
Certain products are reserved exclusively for manufacturing by MSMEs, meaning they can only be procured from registered MSME units.