Any Business organization which are fall under the category of MSME i.e. (Micro, Small and Medium Enterprises) need to be register under the scheme MSMED i.e (Micro, Small and Medium Enterprises Development) Act, 2006. Such Business organization form the backbone of any nation and spur their economic growth by providing income opportunities to all. To support MSM Business organization, benefits are provided under the MSMED Act from the State or Central Government after an Business organization has been registered under the Act. Although the MSME Registration is not mandated by statute, it is beneficial for such Business organization to avail benefits such as exemptions for excise duty, subsidies on power tariff, loan from Banks at lower interest rates, subsidies on tax from Government, subsidies on capital investment to name a few.

Tax subsidies – Many income taxes, as well as capital gain subsidies, are provided by the Government to MSMEs.

Lower interest rates – Banks provide MSMEs with lower interest rates on bank loans to the tune of almost 1-1.5 %.

Quicker approval – Enterprises registered under MSME are provided with quicker approvals from Government in terms of license and certifications.

Special tenders – Many Government tenders are open only to MSMEs in order to encourage smaller businesses in the country.

Cheaper facilities – Electricity, infrastructure, etc. are cheaper for MSME Registration business units.