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Why MSME is Necessary?

What is MSME?


Micro, Small and Medium Enterprise (MSME), presented by Government of India in concurrence with Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 are substances occupied with the creation, assembling, handling or conservation of products and items.
MSME area is considered as the foundation of Indian economy that has contributed generously in the financial improvement of the country. It produces business openings and works in the improvement of in reverse and provincial territories.


Features of Ministry of MSME


1. Works for the welfare of artisans and workers
2. Provides credit limit or funding support from banks
3. Promotes entrepreneurship development and skill upgradation via specialized training centers
4. Supports technology upgradation, infrastructural development and modernization
5. Offers assistance for improved access to domestic and export markets
6. Provides modern testing facilities and quality certification
7. Supports packaging, product development and design intervention


WHY MSME IS NECESSARY?


1. Various schemes for easy and collateral free bank loans at lower interest rate compared to other MSME Loans.
2. Its certificate is also considered as proof of business existence by many banks.
3. Easy Opening and maintaining of current accounts with minimum or zero initial deposit. Some banks are offering lifetime zero
minimum balance account for msme.
4. Trade fair by MSME department which helps in the growth of the business.
5. Any MSME can go MSME Department for recovery of overdue / desputed amount.
6. Trademark and patent application at 50% concessional government fee.
7. The government of India is giving some experienced based relaxation to MSME and some tenders are registered for MSME only.
8. MSME are required to pay tax at a lower rates subject to certain condition.

Disclaimer:
Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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